Allocations are used to distribute cost amounts that are posted to a dimension. This enables you to credit one dimension and debit the costs to another dimension. You only perform these allocations on secondary cost categories.

To allocate costs, you first need to set up a Calculation version. You can then choose between three different allocation types:

• Allocation

• Internal cost allocation

• Surcharge calculation

To allocate costs with the Allocation type Allocation, follow these steps.

1. Click Cost accounting> Setup> Calculation> Calculation versions> Allocations.

2. Press CTRL+N to create a new line.

3. In the Allocation levelfield, select Dimensionor Hierarchyas appropriate. If the Allocation levelis Hierarchy, specify the Allocation hierarchy.

4. Type a reference (either a dimension or a division in a hierarchy) in the Allocation referencefield. Select an Allocation dimension, which is a dimension or a division depending on the Allocation level.

5. Select Allocationin the Allocation typefield.

6. On the Generaltab, enter the Allocation accountand Offset account.

7. On the Allocationtab, select both check boxes under Cost share.

8. Under Value calculation, complete the fields to specify the allocated value. This data forms the basis of the allocation calculation.

9. Under Offset transaction dimension, select the relevant check boxes to define where the amounts are allocated to and how.

10. Under Offset transaction calculation, select the method of calculation.

    The calculation method that you choose determines how allocations are calculated. The following describes how each method works:

    • Fixed percentagePosted amounts are allocated to other dimensions according to the information that is on the Dimensiontab.

    • Cost categoryPosted amounts are allocated to other dimensions in the same proportion and to the same dimensions as posted on the cost category in this field.

    • Service categoryPosted amounts are allocated to other dimensions in the same proportion and to the same dimensions as posted on the cost category in this field.

    • Cost linePosted amounts are allocated to other dimensions in the same proportion and to the same dimensions as posted on the cost line in this field.

    • Reference tablePosted amounts are allocated to other dimensions and in the same proportion as set up on the selected reference table. The dimensions of the reference table are automatically updated on the Dimensiontab.

    • Reference specificationPosted amounts are distributed to other dimensions according to the selected reference quantity and in the same proportion as specified on the Dimensiontab.

    • Fixed amountOn the Dimensiontab, a specified amount is distributed to the dimension

11. Complete the remaining fields under Offset transaction calculation.

12. On the Dimensiontab, enter Dimensions.