When processing cost allocations (in JC Process Cost Allocations), the system uses one of several formulas to calculate the disbursement to each specified job.
Disbursements are calculated using one of the following formulas:
- Using Amount to Allocate
Job Cost ÷ Total Job Cost ´ Allocation Amount
Job Hours ÷ Total Job Hours ´ Allocation Amount
Contract Revenue ´ Allocation Amount
- Using Job Amount Column
Allocation will be the flat amount designated for each job in the specified custom (user-defined) field. The 'Job Amount Column' in JC Allocation Codes is used to identify from which custom field in JC Jobs the allocation amount is pulled for each job.Note: Custom fields are created via VA Custom Fields Wizard.
- Using Allocation Rate
Basis Calculation Cost Cost for Job x Allocation Rate Hours Hours for Job x Allocation Rate Revenue Contract Revenue ÷ Total Revenue ´ Allocation Amount
- Using Job Rate Column
Allocation will be a calculation of Cost for Job x the Allocation rate designated for each job in the specified custom memo field. The 'Job Rate Column' in JC Allocation Codes is used to identify from which custom field in JC Jobs the allocation rate is pulled for each job.
Type: Allocation Amount with Cost Basis
Allocation Code: 1 (applies to all jobs/departments)
Amount To Allocate: 15,000
The allocated amount of $15,000 is disbursed to all open jobs, based on the allocation setup. If there are three jobs with labor costs for the month of June--$20,000, $30,000, and $40,000, respectively--for a total of $90,000, the system will calculate the allocation for each job as follows:
(20,000 / 90,000) x 15,000 = 3,333.33
(30,000 / 90,000) x 15,000 = 5,000.00
(40,000 / 90,000) x 15,000 = 6,666.67 *
Total Amount Allocated: $15,000.00
* When necessary, the system rounds up the last calculation (in this case 6,666.666 to 6,666.67) to balance with the amount to allocate.Note: If the basis is Revenue and multiple jobs point to the same contract, allocations will be charged to the phase/cost type specified, but only to the first job.