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#383 Shift Indirect Costs
Overview
Shift Indirect Costs permits you to automatically transfer indirect costs allocated from one element to another element. It is normally used to fulfill grantor reporting requirements when the grantor agency wants all indirect costs reflected under an administration component or a similar type of element. Using this supplement assists in aligning your budgeting, accounting and reporting procedures on the Revenue and Expenditure reports. After all indirect costs are allocated, Shift Indirect Costs transfers indirect costs in accordance with your instructions. This transfer is documented by printing a Year to Date Cost Allocation Summary after shifting indirect costs.
Things You Should Know
Step by Step Instructions
To set up the matrix, click on edit.
Element: Enter the program element to shift the indirect costs from.
Shift To: Enter the program element to receive the indirect costs.
Status: If the Shift is to be effective, place a checkmark in the Active box. Should you wish to cancel the Shift, remove the checkmark.
Date: Enter the date you are entering the elements to the matrix. This field is only used for documentation purposes, therefore it will not affect the transfer of shifted amounts.
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, Shift Indirect button: Click on this button to perform the shifts according to the matrix you have set up and print a Year to Date Cost Allocation Summary with a notation “After Shift Indirect Costs”. Both the original and this Year to Date Cost Allocation Summary should be filed with your reports.
Shift Indirect Costs permits you to automatically transfer indirect costs allocated from one element to another element. It is normally used to fulfill grantor reporting requirements when the grantor agency wants all indirect costs reflected under an administration component or a similar type of element. Using this supplement assists in aligning your budgeting, accounting and reporting procedures on the Revenue and Expenditure reports. After all indirect costs are allocated, Shift Indirect Costs transfers indirect costs in accordance with your instructions. This transfer is documented by printing a Year to Date Cost Allocation Summary after shifting indirect costs.
Things You Should Know
- If you use Supplement #403 Dual Indirect Pool you have the ability to shift both the allocated Common Costs and M & G Costs. The logic identified in the overview section above should be applied to both the Common and M&G Pools. Once these costs are allocated you can shift them to another element to meet certain reporting requirements. The tab on the Cost Allocation form will say Shift Indirect Setup, and once selected you will see 2 tabs: one for Common and one for M&G. These need to be set up independently.
- Since the Indirect pool (or Common and M&G pools) uses a fiscal year to date base, please be aware that only fiscal year to date activity, including any fluctuation in the rates after a project has ended, will be shifted. The prior year column is not affected by this supplement.
- For each new fiscal year, you will need to enter your new matrix after you have rolled forward R & E under the Year End menu item. When you reverse R & E, your old fiscal year’s matrix will be displayed.
- After doing the shift indirect costs, if you need to print another Cost Allocation Summary without showing the shifted amounts, you need to rerun leave, fringe and indirect allocations.
- This report is titled YTD Cost Allocation Summary After Shift Indirect Costs so it is easier to differentiate from the previous YTD Cost Allocation Summary generated prior to the Shift Indirect step.
Step by Step Instructions
To set up the matrix, click on edit.
Element: Enter the program element to shift the indirect costs from.
Shift To: Enter the program element to receive the indirect costs.
Status: If the Shift is to be effective, place a checkmark in the Active box. Should you wish to cancel the Shift, remove the checkmark.
Date: Enter the date you are entering the elements to the matrix. This field is only used for documentation purposes, therefore it will not affect the transfer of shifted amounts.
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, Shift Indirect button: Click on this button to perform the shifts according to the matrix you have set up and print a Year to Date Cost Allocation Summary with a notation “After Shift Indirect Costs”. Both the original and this Year to Date Cost Allocation Summary should be filed with your reports.