About the EM Process Cost Allocations Form

Use this form to perform cost allocations based on allocation parameters set up in EM Allocation Codes.

This is not a required part of Equipment Management processing — you should use this form only if you need to post additional overhead costs to equipment.

Once you have entered the allocation number, the screen displays information about the allocation based on the specified allocation setup (in EM Allocation Codes). This includes the equipment, departments, and categories to which the allocation applies, as well as the cost types on which you specified to base the allocation, the allocation amount or rate, and the cost code to which the allocation will be posted.

Because the parameters set up in EM Allocation Codes may differ, screen prompts in this program may also differ. For example, if you selected an individual piece of equipment, category, and/or department when you set up the allocation in EM Allocation Codes, this screen will prompt you to indicate the equipment, category, and/or department to process for the selected batch. Additionally, you can override the allocation amount or rate (depending on how you specified the allocation to be calculated).

  • Cost Allocation Overview - Processing cost allocations is the part of the Cost Allocation feature. For more information, see the diagram in Overhead Allocation.
  • Before Running Allocations - Before you run this program, make sure you have interfaced all costs on which you are basing the allocation. If you perform an allocation and later discover you did not interface costs from other modules or the costs are not correct, it is suggested that you:
    • Delete the cost adjusting entries created for the allocation using the EM Cost Adjustments program.
    • Make sure you interface or enter all costs needed for the allocation in EM.
    • Run the allocation again.
    Each time you process an allocation, costs are calculated and posted. Re-running an allocation in the same month will not back out the previously allocated costs.
  • Reversal - This option allows you to flag cost allocation transactions for reversal. If checked, the system will automatically flag all transactions generated during the allocation process as ‘1-Auto Reverse’. You can change the reversal status for transactions, if necessary, in EM Cost Adjustments. Allocations flagged for reversal will be included when initializing reversals in EM Initialize Reversals.
  • Process Allocations - Read about processing allocations here.