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#392 Monthly Cost Center Allocations
This option will automatically appear on the GL Listings menu if you have installed Supplement
#392 Monthly Cost Center Allocations.
Function
Monthly Cost Center Allocations offer an alternative method to allocate costs monthly to designated program elements based upon the monthly units entered.
Processed as part of month end GL Listing activities, common cost center pools are allocated using a transfer code. A revenue or expenditure code is assigned as the transfer code for each common cost center pool. When the allocation takes place, a credit amount will appear in the common cost center pool for the entire amount (zeroing the cost center) and each program element sharing in the cost of the common cost center pool will be debited with its share of the pool using the transfer code.
Following are the major characteristics of this supplement:
Each month, current month revenues and expenses (these can be salary, leave, fringe benefits and other direct charges) are determined and a journal entry is prepared automatically distributing common cost center pool costs to designated program elements. Since Monthly Cost Center Allocations is pre-indirect, no indirect or other allocations would be made to these common cost center pools.
Things You Should Know
Operating Instructions
Pool Input Tab
Base Input Tab
Note: After you click on Save a check box will appear with the option to Apply Base Units to All Pools. Should you desire to apply this base to multiple pools check this box.
A message will then appear asking “Are you sure you wish to apply the units from this pool XXXXXX to selected pools?”
Select Yes to have a grid appear listing all other Monthly Cost Center Allocation Pools. Then select the pools to which you want the edited base to be applied.
Be aware that the base elements must be the same in the selected pools as the base elements in the pool from which you are applying the units.
Click Process
You should receive a message saying the selected pools were updated successfully. If the base elements in the selected pools did not match the elements in the pool from which you are applying the units (as stated above) you will receive a message saying the pools you selected have not been updated.
Click Exit
Things You Should Know
Monthly Cost Center Allocation Tab
#392 Monthly Cost Center Allocations.
Function
Monthly Cost Center Allocations offer an alternative method to allocate costs monthly to designated program elements based upon the monthly units entered.
Processed as part of month end GL Listing activities, common cost center pools are allocated using a transfer code. A revenue or expenditure code is assigned as the transfer code for each common cost center pool. When the allocation takes place, a credit amount will appear in the common cost center pool for the entire amount (zeroing the cost center) and each program element sharing in the cost of the common cost center pool will be debited with its share of the pool using the transfer code.
Following are the major characteristics of this supplement:
- It is pre-indirect. Performed before indirect cost allocations, Monthly Cost Center Allocations may be used in connection with your indirect cost software. You may use this supplement to charge certain common costs to the indirect cost pool, i.e., rent based upon square footage usage.
- Agencies who do not use an indirect cost pool may find that Monthly Cost Center Allocations will save significant time since it handles direct allocations for line items.
- It uses monthly bases and distributes monthly pools.
- Bases are entered externally. It is designed for bases such as square footage, number of units and so forth.
- Distributions are handled by automatic journal entry each month.
Each month, current month revenues and expenses (these can be salary, leave, fringe benefits and other direct charges) are determined and a journal entry is prepared automatically distributing common cost center pool costs to designated program elements. Since Monthly Cost Center Allocations is pre-indirect, no indirect or other allocations would be made to these common cost center pools.
Things You Should Know
- Before the monthly cost center pools and bases can be established in this supplement, the monthly cost center pool program elements and transfer codes must be established in your General Ledger Master Files.
- The monthly cost center pool program element may include one or more line items for allocation. For example, you may designate a monthly cost center pool program element titled “Facility Costs”. You could code the custodian’s salary, rent and utilities to this program element. You would then designate the program elements to receive their share of the facility costs that would show on the Revenue and Expenditure reports as one expense line item titled “facility costs”.
- If you want the custodian’s salary, rent and utilities to show as three separate expense line items when allocated, three monthly cost center pool program elements need to be established along with three separate transfer codes.
- The transfer codes designated are not considered by the software to be control account numbers, therefore, if errors are made in the Base amounts and not discovered until the entire month end was processed, a general journal entry can be made to the transfer codes in the receiving elements to correct the error. GMS recommends that if these correcting adjustments are made, manual documentation on the allocation reports be made. However, you must not make an adjusting entry to the transfer codes within the monthly cost center pool program elements.
- Normally the GL Debit transfer code and the GL Credit transfer code should be the same. If the codes are different this will cause the Agencywide Line Item Revenue and Expenditures report to be overstated.
- During the Year End Roll Forward process, the pool designations and base information is not automatically carried into the new fiscal year unless the box on the Year End Roll Forward screen is checked.
- Should you try to generate a journal entry for a month in which one was previously prepared, you will be warned that the entry already exists and asked if you wish to replace it.
- Should you try to allocate costs to an inactive element you will receive a message that the allocation cannot be done and the system will provide a list of the inactive element(s). At this point you will need to either change the base elements(s) or make the listed element(s) active.
- Should you try to allocate costs to a terminated element you will be notified and asked if you wish to override.
Operating Instructions
Pool Input Tab
- Edit: Click on this button to enter or edit monthly cost center allocation pools.
- Pool Element: Click on the combo box arrow and select the desired pool program element.
- GL Debit: Click on the combo box arrow and select the desired debit transfer code. Normally this Debit transfer code would be the same as the Credit transfer code.
- GL Credit: Click on the combo box arrow and select the desired credit transfer code. Normally this Credit transfer code would be the same as the Debit transfer code.
- Base Description: Enter a description for the type of base to be used for the allocation, i.e. square footage, meals, trips, etc.
- Save: Click on this button to save the pool and GL information reflected in the grid.
- Print: Click on this button to print the Monthly Cost Center Allocation Pools.
Base Input Tab
- Edit: Click on this button to enter or edit monthly cost center 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. The total number of base units will be displayed under the grid for verification of total amounts entered.
- Save: Click on this button to save the information reflected in the grid.
Note: After you click on Save a check box will appear with the option to Apply Base Units to All Pools. Should you desire to apply this base to multiple pools check this box.
A message will then appear asking “Are you sure you wish to apply the units from this pool XXXXXX to selected pools?”
Select Yes to have a grid appear listing all other Monthly Cost Center Allocation Pools. Then select the pools to which you want the edited base to be applied.
Be aware that the base elements must be the same in the selected pools as the base elements in the pool from which you are applying the units.
Click Process
You should receive a message saying the selected pools were updated successfully. If the base elements in the selected pools did not match the elements in the pool from which you are applying the units (as stated above) you will receive a message saying the pools you selected have not been updated.
Click Exit
- Print: Click on this button to print the Monthly Cost Center Allocation Bases.
Things You Should Know
- To make changes to the base for a new month, click on the Base Input tab, enter the Pool element and change the base units and save the new units.
- If you have an element which should no longer receive an allocation, change the units to zero for that element and enter the new element to receive the allocation (if necessary) as described above.
- Select the period from the drop down box to print a previous printed GL Detail Report. Only reports previously printed will appear in the drop down box.
Monthly Cost Center Allocation Tab
- Period: Select the month end that is being processed.
- Print: Click on this button to print the Monthly Cost Center Allocations – Pool Line Item Detail and Base Allocations.
- Prepare Journal: Click on this button to automatically prepare the general journal entry/batch for the allocation of the monthly cost center pools. This batch will automatically be posted to the GL.
- Prepare GL Item Distibution: This report will provide you with the line-item detail of the allocated pool amount to the base elements.
