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#367 Service Unit Allocations
This button will automatically appear on the Cost Allocation menu if you have installed Supplement
#367 Service Unit Allocations.
Function
The Service Unit Allocations allocate the costs of specified program elements (pools) to designated program elements based upon the number of units entered.
Processed as a part of month end cost allocation activities, pools are reallocated using a transfer code. A revenue or expenditure code is assigned as the transfer code for each pool. When the allocation takes place, a credit amount will appear in the pool for the entire pool amount (zeroing the pool) and each program element sharing in the cost of the pool will be debited with its share of the pool using the transfer code.
Since pools collect amounts on a year-to-date basis, the entire pool is reallocated each month. The result is an equitable allocation to all designated program elements on the basis of a common cost per unit.
During the Year End Roll Forward process, the pool designations and base information are not automatically carried into the new fiscal year unless the box is checked on the R/E Prior Year tab.
Things You Should Know
Operating Instructions
Service Unit Setup tab
Service Unit Pool tab
Edit: Click on this button to enter or edit service unit allocation pools.
Pool #: Enter the next available pool #.
Pool Element: Click on the combo box arrow and select the desired pool program element.
GL Code: Click on the combo box arrow and select the desired transfer code.
Save Edit: Click on this button to save the pool and GL information reflected in the grid.
Print: Click on this button to print the Service Unit Allocation Pools.
Service Unit Base tab
Edit: Click on this button to enter or edit service unit allocation bases.
Pool Element: Click on the combo box arrow and select the desired pool program element.
Base Element: Click on the combo box arrow and select the desired program element that is to receive an allocated amount from the pool element.
Current Units: Enter the current month units of service. YTD units of service will automatically be computed. After the first month end is completed, for future months during the fiscal year, just change the current units in the grid. When your cursor leaves that field, it will automatically be added to the YTD units. If an error was made when editing the current units, you will also need to edit the year to date units.
Note: The system will not allow you to select any element as a base element that has been designated as a pool element in any previous allocation routine. For example, should you have Supplement #392 Monthly Cost Center Allocations, any element that is a pool element for that supplement cannot be chosen as a base element for Service Unit Allocations.
Save Edit: Click on this button to save the information reflected in the grid.
Print: Click on this button to print the Service Unit Allocation Bases.
Cost Allocation tab
Period: The period should reflect the month end that is being processed and that has been used for the other pool allocations.
Cost Allocation menu, Service Unit Allocation button: Click on this button to print the Service Unit Allocation Summary.
#367 Service Unit Allocations.
Function
The Service Unit Allocations allocate the costs of specified program elements (pools) to designated program elements based upon the number of units entered.
Processed as a part of month end cost allocation activities, pools are reallocated using a transfer code. A revenue or expenditure code is assigned as the transfer code for each pool. When the allocation takes place, a credit amount will appear in the pool for the entire pool amount (zeroing the pool) and each program element sharing in the cost of the pool will be debited with its share of the pool using the transfer code.
Since pools collect amounts on a year-to-date basis, the entire pool is reallocated each month. The result is an equitable allocation to all designated program elements on the basis of a common cost per unit.
During the Year End Roll Forward process, the pool designations and base information are not automatically carried into the new fiscal year unless the box is checked on the R/E Prior Year tab.
Things You Should Know
- Normally, actual current month units of service are entered every month. However, in special circumstances annual year-to-date units based on past experience or budget authorizations have been used for processing month end. In this instance, you should not enter the current units each month since they remain unchanged.
- There is no limit on the number of service unit pools that can be set up.
- A Service Unit Allocation Summary will be printed following allocation processing. It will only print those program elements that were entered with units of service or the pool elements. The Pool Amt column should reflect total year-to-date expenses posted to each pool element. The Base Amt should reflect year-to-date units of service entered for each base program element.
- The distribution amount (Dist Amt) column should reflect a negative amount for the pool elements equal to the pool amount (Pool Amt). Positive amounts should be shown for each base element that add up to the total costs of the pool element. Each pool total should be zero under the distribution amount demonstrating that all pool expenses were allocated. The distribution amounts can be traced and verified on the Revenue and Expenditure reports. The element balance for pool elements on the Revenue and Expenditure reports should be zero.
- Before pools and bases can be established in this supplement, the pool program elements and transfer codes must be established in your GL Master Files.
- A different transfer code must be established for each pool element. You may not use any other transfer codes created for other cost allocation supplements. Also, you may not use expenditure control accounts for salaries, leave, fringe, or indirect as transfer accounts.
- Transfer codes must not be used for any other coding.
- If you are coding a revenue code to a pool to lower the cost to be allocated, make sure the cash receipt is coded at the Element level for the specific pool.
- When the units of service are edited and saved, a copy of all current and year-to-date units are saved in a table by month. If a previous month needs to be re-run, it will use the year-to- date units for the month selected.
- You will be blocked from deleting a pool element that has base elements assigned to it. You must first delete all of the base elements assigned to the pool element you wish to delete.
- During the Year End Roll Forward process the pool designations and base information is carried into the new fiscal year only if the box is checked.
Operating Instructions
Service Unit Setup tab
Service Unit Pool tab
Edit: Click on this button to enter or edit service unit allocation pools.
Pool #: Enter the next available pool #.
Pool Element: Click on the combo box arrow and select the desired pool program element.
GL Code: Click on the combo box arrow and select the desired transfer code.
Save Edit: Click on this button to save the pool and GL information reflected in the grid.
Print: Click on this button to print the Service Unit Allocation Pools.
Service Unit Base tab
Edit: Click on this button to enter or edit service unit allocation bases.
Pool Element: Click on the combo box arrow and select the desired pool program element.
Base Element: Click on the combo box arrow and select the desired program element that is to receive an allocated amount from the pool element.
Current Units: Enter the current month units of service. YTD units of service will automatically be computed. After the first month end is completed, for future months during the fiscal year, just change the current units in the grid. When your cursor leaves that field, it will automatically be added to the YTD units. If an error was made when editing the current units, you will also need to edit the year to date units.
Note: The system will not allow you to select any element as a base element that has been designated as a pool element in any previous allocation routine. For example, should you have Supplement #392 Monthly Cost Center Allocations, any element that is a pool element for that supplement cannot be chosen as a base element for Service Unit Allocations.
Save Edit: Click on this button to save the information reflected in the grid.
Print: Click on this button to print the Service Unit Allocation Bases.
Cost Allocation tab
Period: The period should reflect the month end that is being processed and that has been used for the other pool allocations.
Cost Allocation menu, Service Unit Allocation button: Click on this button to print the Service Unit Allocation Summary.