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Cost Allocation
Function
Accumulates leave benefits, fringe benefits, and indirect costs not charged directly to programs; allocates these costs to programs; posts the results to program revenue and expenditure reports.
Post All Allocations - This button will do the calculations of every cost allocation item set up on the cost allocation menu without producing any reports. It is intended to be used for producing mid- month financial reports. This should not be used during normal month end processing where each cost allocation report should be reviewed and retained. If you charge any leave time when it is earned, you will still be asked to specify the pay period ending date to use in the calculation.
Note: You should not go into this section and print only a single report. Always do all steps and bring all reports to the screen or send them to the printer.
How It Works
There is no single issue within the GMS system where users have more policy choices and where users are more diverse than in the area of cost allocation.
This help file explains the approach GMS recommends and the methodology adopted by most of our clients.
Leave, fringe and indirect rates will print 4 digits to the right of the decimal.
Allocated amounts will be rounded to two digits to the right of the decimal. Any penny differences between the pool and allocated amounts will be written off at year end.
The basic GMS system provides for three types of allocated costs:
Leave Benefit Costs
Time charged on timesheets when employees are on leave and not working directly on a program is considered to be a Leave Benefit. Although a person's time may be budgeted to a particular program, it is not a direct cost to the program because they are not working on it when on leave.
Within the GMS system leave costs are normally accumulated in a leave pool by class of employee. Allocations are made by class using the ratio of Agency Fiscal YTD Leave Costs to the base set up.
If your Leave Allocation matrix is set up to accrue leave costs, you will be asked to choose the pay period ending date to pick up leave balances for that pay period. If you
do not select a date, it will use the leave balances currently in the employee master file. If you select a pay period ending date that is not in the combo box, it means you do not have any timesheets posted in the leave history table for that pay period and will instruct you to choose a pay period from the combo box. After you select a pay period ending date from the combo box, it will first check your leave history table to find the leave balances for all employees for that pay period. It then looks at an employee pay rate table to find the rate of pay and employee class used for the pay period selected. To use the leave balances and the rate of pay that are presently in the employee file, click on Next without selecting a pay period date.
The resulting year-to-date rate is applied to all programs each month with any cost adjustment from one month to the next appearing as part of current month salaries.
Depending upon the agency's personnel policies, the leave pool may be adjusted to reflect costs for all or a portion of accrued annual leave and/or accrued sick leave.
Total year-to-date salaries on financial reports will equal direct salaries found on timesheet reports plus allocated leave unless you have chosen to expense leave costs to the fringe benefit pool.
Fringe Benefit Costs
Pooled fringe benefits are charged to element 998000 where they are accumulated on an agency fiscal year-to-date basis for allocation to programs. Pooled fringe benefits are captured by line item and instructions are set up to identify the classes of employees each fringe benefit is applicable to.
Allocations are made to programs by employee class using the rate of YTD Fringe Benefits to the base as defined at the bottom of the Fringe Allocation Setup tab.
The resulting year-to-date rates are applied to programs each month with any cost adjustment from one month to the next appearing under the current month column in account 50500 Fringe Benefits.
Indirect Costs
Pooled indirect costs are charged to elements 999000-999900 where they are accumulated on an agency fiscal year-to-date basis for allocation to programs. Pooled indirect costs are captured by line item and a base (normally personnel or total direct costs) is identified for their allocation. The base is set up according to the agency's Indirect Cost Plan.
Allocations are made to programs using the ratio of YTD Indirect Costs to Total Base.
The resulting year-to-date rate is applied to all programs using the base selected. The allocation takes place monthly using the year-to-date rate. Distribution is made using account 59700 Indirect Costs with any cost adjustment from one month to the next appearing under current month cost.
Things You Should Know
- Cost allocation can reduce the time the accounting staff devotes to transactions (review, coding, entry, processing, etc.) by 30% to 50%. In addition, it makes budgeting more uniform throughout the agency.
- Cost allocation is 100% consistent with the cost accounting standards and principles set forth in Federal Management Circulars.
- Cost allocation fulfills many of the requirements and tests your agency will be audited for under the requirements prescribed in Circular A-133.
Leave Rate Computation and Analysis
Function
Posts monthly timesheets to the leave pool and re-computes year-to-date leave rates and applies leave rates to the programs.
If your organization accrues leave costs, you will be asked to choose the pay period ending date to pick up leave balances for that pay period. If you do not select a date, it will use the leave balances in the employee master file. If you accrue leave costs, you should enter the pay period ending date you wish to calculate the current liability balances for. Click on Next to display the Leave Rate Computation and Analysis.
If your agency direct charges leave on timesheets, you still need to do this step to properly record salaries to the cost allocation table.
Each month the leave pool is posted with current month timesheet charges.
This process allows the leave pool to accumulate all fiscal year-to-date leave taken costs.
This accumulation and allocation of leave costs involves several steps - all included in this procedure.
Section 1 of this report presents a salary recap. First, all year-to-date leave taken charges are shown by class. Second, all regular, overtime, and comp time earned is identified. Added together, these amounts total the agency salaries and wages for the fiscal year.
Section 2 computes the leave pool. This section of the report has been constructed to reflect the
personnel polices of your organization. The following are the adjustments typically made to year-to- date leave taken.
If it is your organization's policy to pay employee's all or a portion of their unused sick leave at time of separation from the agency, then there will be an adjustment to sick leave to reflect actual cost as earned. The adjustment is calculated using this formula:
Plus: Accrued Sick Leave
Current Liability. Current monetary value of employee sick leave benefits.
Less: Opening Liability. Liability for accrued sick leave on books at beginning of fiscal year. This amount is taken from the leave accrual setup file.
Equals: Change in Liability. This is your current year adjustment for sick leave. This amount is added to leave taken charges and the change in annual leave liability to calculate the total leave costs.
Section 3 computes the leave rate. To do so, the costs of the leave pool are related to regular time salaries by employee class. The resulting rates are applied to all programs. Leave costs to individual programs appear on the Year-to-date Cost Allocation Summary and are included as part of the cost of salary (account 50000) on Revenue and Expenditure reports.
At the conclusion of this report, the Employee Leave Balance Analysis is printed documenting the status of leave liability accounts as of the date this report is run. The amounts shown on this report should equal the current liability for leave as listed in Section 2 on the Leave Rate Computation and Analysis.
Operating Instructions
To generate the Leave Rate Computation and Analysis, select Leave Cost Allocation from the Cost Allocation menu.
Things You Should Know
Fringe Benefit Analysis and Rate Computation
Function
Posts fringe benefit pool with current month transactions and computes agency fringe benefit rates. Allocates fringe benefit costs to programs.
How It Works
Each month the fringe benefit pool is posted with current month charges.
These are items charged to element 998000 in your accounting batches. This process allows the fringe pool to accumulate all fiscal year-to-date fringe benefit costs.
The accumulation and allocation of fringe benefits involves several steps - all of which will occur when you select this function.
Part 2 Fringe Benefit Allocation Calculations identifies and computes fringe benefit amounts by employee class for each fringe benefit line item. Fringe benefit rates are calculated for each class. These rates are applied to all programs and the resulting costs appear on the Year-to-date Cost Allocation Summary. Allocated fringe benefit costs will also appear in account 50500 Fringe Benefits on Revenue and Expenditure Reports.
Operating Instructions
To generate the Fringe Benefit Rate Analysis and Rate Computation, select Fringe Cost Allocation from the Cost Allocation menu.
Things You Should Know
Begin by correcting your accounting batches as required and reprinting and replacing.
Re-run this step and check results.
Repeat all steps on the General Ledger Listings menu and replace all reports. You may repeat these correcting steps as often as required.
Indirect Rate Computation and Analysis
Function
Posts indirect cost pool with transactions coded to elements 999000-999900 and computes indirect cost rate. Allocates indirect costs to programs.
How It Works
Each month the indirect cost pool is posted with current month charges.
These are items charged to elements 999000-999900 in your accounting batches.
This process allows the indirect cost pool to accumulate all fiscal year- to-date indirect costs and to report them each month.
The accumulation and allocation of indirect costs involves several steps - all of which will occur when you select this function.
Each line item is reported with both current and year-to-date amounts. Budgeted amounts appear and over/under budget and percent of budget expended is computed. To enter indirect cost budgets, see chapter on Budget and PY R&E Procedures.
At the conclusion of this report, the year-to-date indirect cost rate is computed. This rate is applied to programs and the resulting distribution appears on the Year-to-date Cost Allocation Summary.
Allocated indirect costs will also appear in account 59700 Indirect Costs on revenue and expenditure reports.
Operating Instructions
To generate the Indirect Cost Rate Computation/Analysis, select Indirect Cost Allocation from the Cost Allocation menu.
Things You Should Know
Depending upon the significance of the amounts, you may wish to process corrections in the following month. Should you wish to correct in the current month, follow these instructions.
Begin by correcting your accounting batch(es) as required
Re-run this step and check results.
Reprint all reports on the GL Listings menu or Timesheet Reports as applicable and replace all reports.
You may repeat these correcting steps as often as may be required.
The GMS Software contains a matrix which may be used to establish assumptions with regard to the treatment of indirect costs. This matrix is accessed by entering Tools, Cost Allocation Setup, Indirect Cost Allocation. If you need assistance in setting up or changing your indirect cost assumptions, please place a service call.
Year-To-Date Cost Allocation Summary
Function
To generate the Year-to-date Cost Allocation Summary, select Cost Allocation Summary from the Cost Allocation menu.
How It Works
The Year-to-Date Cost Allocation Summary shows the allocation of Leave, Fringe Benefits & Indirect Costs to the applicable program elements. Thus, you should be able to check the various amounts against each rate computation and analysis.
This report is designed to serve as a primary part of the audit and documentation trail for your accounting system. It will demonstrate how your automated allocations work. It will show your auditor that year-to-date rates have been applied to the base as it was established in the Indirect Cost Setup tab.
Report columns include:
Operating Instructions
To generate the Year-to-date Cost Allocation Summary, select Cost Allocation Summary from the Cost Allocation menu.
Things You Should Know
Accumulates leave benefits, fringe benefits, and indirect costs not charged directly to programs; allocates these costs to programs; posts the results to program revenue and expenditure reports.
- Leave Cost Allocation
- Fringe Cost Allocation
- Indirect Cost Allocation
- Cost Allocation Summary
- Cost Allocation Supplements (if purchased)
Post All Allocations - This button will do the calculations of every cost allocation item set up on the cost allocation menu without producing any reports. It is intended to be used for producing mid- month financial reports. This should not be used during normal month end processing where each cost allocation report should be reviewed and retained. If you charge any leave time when it is earned, you will still be asked to specify the pay period ending date to use in the calculation.
Note: You should not go into this section and print only a single report. Always do all steps and bring all reports to the screen or send them to the printer.
How It Works
There is no single issue within the GMS system where users have more policy choices and where users are more diverse than in the area of cost allocation.
This help file explains the approach GMS recommends and the methodology adopted by most of our clients.
Leave, fringe and indirect rates will print 4 digits to the right of the decimal.
Allocated amounts will be rounded to two digits to the right of the decimal. Any penny differences between the pool and allocated amounts will be written off at year end.
The basic GMS system provides for three types of allocated costs:
Leave Benefit Costs
Time charged on timesheets when employees are on leave and not working directly on a program is considered to be a Leave Benefit. Although a person's time may be budgeted to a particular program, it is not a direct cost to the program because they are not working on it when on leave.
Within the GMS system leave costs are normally accumulated in a leave pool by class of employee. Allocations are made by class using the ratio of Agency Fiscal YTD Leave Costs to the base set up.
If your Leave Allocation matrix is set up to accrue leave costs, you will be asked to choose the pay period ending date to pick up leave balances for that pay period. If you
do not select a date, it will use the leave balances currently in the employee master file. If you select a pay period ending date that is not in the combo box, it means you do not have any timesheets posted in the leave history table for that pay period and will instruct you to choose a pay period from the combo box. After you select a pay period ending date from the combo box, it will first check your leave history table to find the leave balances for all employees for that pay period. It then looks at an employee pay rate table to find the rate of pay and employee class used for the pay period selected. To use the leave balances and the rate of pay that are presently in the employee file, click on Next without selecting a pay period date.
The resulting year-to-date rate is applied to all programs each month with any cost adjustment from one month to the next appearing as part of current month salaries.
Depending upon the agency's personnel policies, the leave pool may be adjusted to reflect costs for all or a portion of accrued annual leave and/or accrued sick leave.
Total year-to-date salaries on financial reports will equal direct salaries found on timesheet reports plus allocated leave unless you have chosen to expense leave costs to the fringe benefit pool.
Fringe Benefit Costs
Pooled fringe benefits are charged to element 998000 where they are accumulated on an agency fiscal year-to-date basis for allocation to programs. Pooled fringe benefits are captured by line item and instructions are set up to identify the classes of employees each fringe benefit is applicable to.
Allocations are made to programs by employee class using the rate of YTD Fringe Benefits to the base as defined at the bottom of the Fringe Allocation Setup tab.
The resulting year-to-date rates are applied to programs each month with any cost adjustment from one month to the next appearing under the current month column in account 50500 Fringe Benefits.
Indirect Costs
Pooled indirect costs are charged to elements 999000-999900 where they are accumulated on an agency fiscal year-to-date basis for allocation to programs. Pooled indirect costs are captured by line item and a base (normally personnel or total direct costs) is identified for their allocation. The base is set up according to the agency's Indirect Cost Plan.
Allocations are made to programs using the ratio of YTD Indirect Costs to Total Base.
The resulting year-to-date rate is applied to all programs using the base selected. The allocation takes place monthly using the year-to-date rate. Distribution is made using account 59700 Indirect Costs with any cost adjustment from one month to the next appearing under current month cost.
Things You Should Know
- The GMS system provides you with numerous choices for handling cost allocation issues. Some users choose to refrain from using cost allocation entirely and directly charge these allocated costs to specific programs.
- GMS wholeheartedly endorses the principles of cost allocation and the procedures contained in the software for several reasons:
- Cost allocation can reduce the time the accounting staff devotes to transactions (review, coding, entry, processing, etc.) by 30% to 50%. In addition, it makes budgeting more uniform throughout the agency.
- Cost allocation is 100% consistent with the cost accounting standards and principles set forth in Federal Management Circulars.
- Cost allocation fulfills many of the requirements and tests your agency will be audited for under the requirements prescribed in Circular A-133.
Leave Rate Computation and Analysis
Function
Posts monthly timesheets to the leave pool and re-computes year-to-date leave rates and applies leave rates to the programs.
If your organization accrues leave costs, you will be asked to choose the pay period ending date to pick up leave balances for that pay period. If you do not select a date, it will use the leave balances in the employee master file. If you accrue leave costs, you should enter the pay period ending date you wish to calculate the current liability balances for. Click on Next to display the Leave Rate Computation and Analysis.
If your agency direct charges leave on timesheets, you still need to do this step to properly record salaries to the cost allocation table.
Each month the leave pool is posted with current month timesheet charges.
This process allows the leave pool to accumulate all fiscal year-to-date leave taken costs.
This accumulation and allocation of leave costs involves several steps - all included in this procedure.
- The leave pool is updated with current leave taken charges.
- The base for distribution of leave is also updated. Normally this is regular time salaries charged to program activities.
- The leave pool is adjusted to reflect your agency's cost of leave based on accrual policies.
- Rates are calculated by employee class using the ratio of YTD Leave Pool to Regular Time Salaries.
- Leave costs are allocated to programs using the rates calculated.
Section 1 of this report presents a salary recap. First, all year-to-date leave taken charges are shown by class. Second, all regular, overtime, and comp time earned is identified. Added together, these amounts total the agency salaries and wages for the fiscal year.
Section 2 computes the leave pool. This section of the report has been constructed to reflect the
personnel polices of your organization. The following are the adjustments typically made to year-to- date leave taken.
- Compensatory (Comp) Time Taken Charges are removed.
The cost of comp time was directly charged to programs as earned and the comp time liability account credited to accrue this cost at that time. Therefore, comp time taken does not belong in the leave pool. Funds have already been set aside to pay for it. - Annual Leave may be adjusted.
If it is your organization's policy to pay employees for their unused annual leave at time of separation from the agency, then there will be an adjustment to annual leave to reflect actual cost as earned. (This adjustment will be to salaries and accrued annual leave.) The adjustment is calculated using this formula:
Plus: Annual Leave Accrued
Current Liability. Current monetary value of employee annual leave balances.
Less: Opening Liability. Liability for accrued annual leave on books at beginning of fiscal year. This amount is taken
from the leave accrual setup file.
Equals: Change in Liability. This is your current year adjustment for annual leave. This amount is added to leave taken charges to calculate the total leave costs.
- Sick Leave may be adjusted.
If it is your organization's policy to pay employee's all or a portion of their unused sick leave at time of separation from the agency, then there will be an adjustment to sick leave to reflect actual cost as earned. The adjustment is calculated using this formula:
Plus: Accrued Sick Leave
Current Liability. Current monetary value of employee sick leave benefits.
Less: Opening Liability. Liability for accrued sick leave on books at beginning of fiscal year. This amount is taken from the leave accrual setup file.
Equals: Change in Liability. This is your current year adjustment for sick leave. This amount is added to leave taken charges and the change in annual leave liability to calculate the total leave costs.
Section 3 computes the leave rate. To do so, the costs of the leave pool are related to regular time salaries by employee class. The resulting rates are applied to all programs. Leave costs to individual programs appear on the Year-to-date Cost Allocation Summary and are included as part of the cost of salary (account 50000) on Revenue and Expenditure reports.
At the conclusion of this report, the Employee Leave Balance Analysis is printed documenting the status of leave liability accounts as of the date this report is run. The amounts shown on this report should equal the current liability for leave as listed in Section 2 on the Leave Rate Computation and Analysis.
Operating Instructions
To generate the Leave Rate Computation and Analysis, select Leave Cost Allocation from the Cost Allocation menu.
- The Starting Period date will always be the first date of your fiscal year. The Ending Period date will default to your current period date. If you are processing cost allocation for a previous month, go to Tools, Organization, Organization Info and change the Current Period date to the appropriate date. The same date must be used for all cost allocation reports in order to produce accurate amounts.
- Click on Leave Cost Allocation.
- Once the report is displayed on screen, select the Printer in the upper left hand corner to print your report.
- To Exit, click on the X in the upper right hand corner to return to the Cost Allocation Menu.
Things You Should Know
- Running the Leave Rate Computation and Analysis more than once for the current month will not double up current amounts. You may display or print the report as many times as needed without consequence.
- Before proceeding to the next processing step you should:
- Check the salary recap. Total Salaries should equal YTD Timesheet Charges Report. Also, each leave taken amount should match the applicable leave taken amounts reflected on the YTD Timesheet Charges by Activity
- If annual leave is accrued, Section (2) "Compute Leave Pool", Current Liability Totals should equal the Annual Leave Accrual Totals on the Employee Leave Balance Analysis. These amounts should represent leave balances in the employee files for the pay period entered prior to printing the report.
- If you accrue annual or sick leave costs, the opening liability should normally equal the prior year amounts in the accrued annual and sick leave accounts in the General Ledger with Current Detail.
- Several issues may cause you to re-run this step.
- Amounts on Leave Rate Computation and Analysis includes information for the wrong period.
- Timesheets were miscoded.
- Enter a timesheet adjustment for the correction, reprint and replace reports.
- Re-run all steps on the Timesheet Reports menu, replacing all reports.
- Reprint Leave Rate Computation and Analysis and check results. You may repeat these correction steps as many times as may be required.
- Should you need to adjust your leave accrual policies and/or change your opening liabilities for annual or sick leave you should:
Fringe Benefit Analysis and Rate Computation
Function
Posts fringe benefit pool with current month transactions and computes agency fringe benefit rates. Allocates fringe benefit costs to programs.
How It Works
Each month the fringe benefit pool is posted with current month charges.
These are items charged to element 998000 in your accounting batches. This process allows the fringe pool to accumulate all fiscal year-to-date fringe benefit costs.
The accumulation and allocation of fringe benefits involves several steps - all of which will occur when you select this function.
- Fringe benefit pool is updated with current month charges.
- The cost of each fringe benefit item is analyzed and attributed to designated employee classes.
- Fringe benefit rates are calculated for each employee class using the ratio of YTD Fringe Benefits to the base as defined at the bottom of the Fringe Allocation Setup tab.
- Fringe benefit costs are allocated to programs using the fringe benefit rates calculated.
Part 2 Fringe Benefit Allocation Calculations identifies and computes fringe benefit amounts by employee class for each fringe benefit line item. Fringe benefit rates are calculated for each class. These rates are applied to all programs and the resulting costs appear on the Year-to-date Cost Allocation Summary. Allocated fringe benefit costs will also appear in account 50500 Fringe Benefits on Revenue and Expenditure Reports.
Operating Instructions
To generate the Fringe Benefit Rate Analysis and Rate Computation, select Fringe Cost Allocation from the Cost Allocation menu.
- Click on Fringe Cost Allocation.
- Once the report is displayed on screen, select the Printer in the upper left hand corner to print your report.
- To Exit, click on the X in the upper right hand corner to return to the Cost Allocation Menu
Things You Should Know
- Running the Fringe Benefit Analysis and Rate Computation more than once for the current month will not double up current amounts. You may display or print the report as many times as needed without consequence.
- Before proceeding, you should:
- Spot check a fringe benefit item that has current charges. The Year-to-date amount should match the Balance Forward on the General Ledger with Current Detail.
- Make certain that the fringe benefit YTD total equals the class totals under the Total Fringe Benefits Allocated.
- The most common problems found are:
- Amounts on the Fringe Benefit Analysis and Rate Computation includes information for the wrong period.
Report may have been run with incorrect dates. Correct ending dates, print again and check results. - Fringe Allocation matrix is incorrect or needs to be changed. In Tools, Cost Allocation Setup, correct the Fringe Allocation instructions. Re-run this step and check results.
- Transactions have been coded improperly.
Begin by correcting your accounting batches as required and reprinting and replacing.
Re-run this step and check results.
Repeat all steps on the General Ledger Listings menu and replace all reports. You may repeat these correcting steps as often as required.
- To adjust your fringe benefit matrix identifying employee classes' eligibility to receive a particular benefit, select Tools, Cost Allocation Setup, Fringe Allocation. For each fringe benefit account, designate the classes eligible for the fringe benefit with a checkmark in the box. Do not check the box if that class is ineligible for the benefit.
- Whenever you change the Fringe Allocation Matrix you should re-run this function to see that your changes have been implemented properly. Changes in the matrix will be recomputed on a year-to-date basis.
Indirect Rate Computation and Analysis
Function
Posts indirect cost pool with transactions coded to elements 999000-999900 and computes indirect cost rate. Allocates indirect costs to programs.
How It Works
Each month the indirect cost pool is posted with current month charges.
These are items charged to elements 999000-999900 in your accounting batches.
This process allows the indirect cost pool to accumulate all fiscal year- to-date indirect costs and to report them each month.
The accumulation and allocation of indirect costs involves several steps - all of which will occur when you select this function.
- Indirect cost pool is updated with current month charges.
- The base used for the distribution of indirect costs is identified.
- The actual year-to-date indirect cost rate is determined using the ratio of YTD Indirect Costs to YTD Base.
- Indirect costs are allocated to programs containing the base using the indirect cost rate.
Each line item is reported with both current and year-to-date amounts. Budgeted amounts appear and over/under budget and percent of budget expended is computed. To enter indirect cost budgets, see chapter on Budget and PY R&E Procedures.
At the conclusion of this report, the year-to-date indirect cost rate is computed. This rate is applied to programs and the resulting distribution appears on the Year-to-date Cost Allocation Summary.
Allocated indirect costs will also appear in account 59700 Indirect Costs on revenue and expenditure reports.
Operating Instructions
To generate the Indirect Cost Rate Computation/Analysis, select Indirect Cost Allocation from the Cost Allocation menu.
- Click on Indirect Cost Allocation.
- Once the report is displayed on screen, select the Printer in the upper left hand corner to print your report.
- To Exit, click on the X in the upper right hand corner.
Things You Should Know
- Running the Indirect Rate Computation and Analysis more than once for the current period will not double up current amounts. You may display or print the report as many times as needed without consequence.
- Before proceeding you should:
- Reconcile the non-salary, non-fringe portions of the indirect cost pool to the General Ledger with Current Detail (50000 accounts). If multiple indirect elements are used, the Total Indirect Cost Pool page should be used for the reconciliation.
- The most common problems found are:
- Amounts on Indirect Cost Rate Computation and Analysis includes information for the wrong period.
- Transactions have been coded improperly.
Depending upon the significance of the amounts, you may wish to process corrections in the following month. Should you wish to correct in the current month, follow these instructions.
Begin by correcting your accounting batch(es) as required
Re-run this step and check results.
Reprint all reports on the GL Listings menu or Timesheet Reports as applicable and replace all reports.
You may repeat these correcting steps as often as may be required.
The GMS Software contains a matrix which may be used to establish assumptions with regard to the treatment of indirect costs. This matrix is accessed by entering Tools, Cost Allocation Setup, Indirect Cost Allocation. If you need assistance in setting up or changing your indirect cost assumptions, please place a service call.
Year-To-Date Cost Allocation Summary
Function
To generate the Year-to-date Cost Allocation Summary, select Cost Allocation Summary from the Cost Allocation menu.
How It Works
The Year-to-Date Cost Allocation Summary shows the allocation of Leave, Fringe Benefits & Indirect Costs to the applicable program elements. Thus, you should be able to check the various amounts against each rate computation and analysis.
This report is designed to serve as a primary part of the audit and documentation trail for your accounting system. It will demonstrate how your automated allocations work. It will show your auditor that year-to-date rates have been applied to the base as it was established in the Indirect Cost Setup tab.
Report columns include:
- Project/Element/Class - Based on the coding and class of employee during timesheet data entry
- Regular Time Salaries - Posted from Timesheet Reports
- Leave Allocation - Based upon the leave rates computed when running Cost Allocation - Leave Rate Computation and Analysis
- Overtime - Posted from Timesheet Reports
- Comp Time - Posted from Timesheet Reports
- Total Salaries - Total of Regular Time Salaries, Leave Allocated, Comp Time and Overtime Salaries
- Benefits - Fringe benefit costs based upon the fringe benefit rates computed when running Cost Allocation - Fringe Benefit Rate Computation and Analysis
- Indirect Costs - Indirect costs based upon the indirect cost rate computed when running Cost Allocation - Indirect Cost Rate Computation and Analysis
Operating Instructions
To generate the Year-to-date Cost Allocation Summary, select Cost Allocation Summary from the Cost Allocation menu.
- Click on Cost Allocation Summary.
- Once the report is displayed on screen, select the Printer in the upper left hand corner to print your report.
- To Exit, click on the X in the upper right hand corner.
Things You Should Know
- Verify the report totals of the Year to Date Cost Allocation Summary.
- Compare the Regular Time Salaries to the YTD Timesheet Charges by Activity.
- Compare the Leave Allocated Report Total to the change in leave liability on the Leave Rate Computation and Analysis. If it does not match, it typically means a pay code was improperly used.
- Compare the Overtime and Comp Columns to the YTD Timesheet Charges by Activity.
- Compare the Benefits to the total YTD column on the Fringe Benefit Rate Computation and Analysis. If it is different, it typically means that the Fringe Matrix does not include a particular fringe benefit, which would have normally been discovered at the time the Fringe Benefit Rate Computation and Analysis was printed.
- Compare the Indirect column to the YTD column on the Indirect Rate Computation and Analysis. Verify any classes, elements and projects that are to be excluded have been set up correctly in the Indirect Matrix.