[EM] Allocations

Allows for posting of overhead costs to be allocated to equipment based upon costs, usage hours, revenue dollars or other custom criteria. Common allocations are for insurance, shop supplies, shop overhead, ect. 

Setup allocation codes in EM Allocation codes. Choose description and basis (cost, hours, revenue, variable) how allocation is calculated. Post by month or by date range. Allocate Amount/Rate- Allocation amount, equipment amount column, allocation rate, equipment rate column. Equipment to allocate- all equipment, assigned equipment or prompt for equipment., Departments to allocate- all departments, assigned departments, prompt for departments. Categories to allocate- all categories, assigned categories, prompt for categories. You can choose the cost type, You can choose the revenue code for hours or revenue. You can choose what accounts you want to post to on the post options. Run Process allocations- will calculate the dollar amounts and allocate out to pieces of equipment. 

For each allocation code you set up, you must define the calculation basis (Costs, Hours, Revenue, or Variable), how allocation should be calculated (by month or by date range), and the allocation amount or rate. Allocations can be set as a specified amount/rate here or as an amount/rate defined by equipment (in EM Equipment) using custom fields.

• Cost Allocation Overview - Creating and maintaining the allocation codes is the part of the Cost Allocation feature. 
• Equipment/Departments/Categories to Allocate - Use this section to specify the equipment, departments, and categories to allocate.
  • All – If you select this option, allocations will be based on and applied to all equipment, departments, and/or categories.
  • Assigned – If you select this option, the allocation will be based on and applied to the equipment, departments, and/or categories specified on the Allocation Equipment, Allocation, Departments, and/or Allocation Categories tabs.
  • Prompt For – If you select this option, you will be prompted to specify the equipment, department, and/or category to allocate when processing allocations in EM Process Cost Allocations.

Post Options - Use this tab to identify the cost code and cost type to which allocations will be posted, as well as the GL accounts debited and credited when processing cost allocations.