This program is used to create indirect expense allocation definition. The indirect expense allocation formulation is based on:
Selection of a range of GL accounts and entry of journal particulars or narration as a description. It also uses, nomination of a journal type, reversal accounts (wildcard capable) and target accounts (wildcard capable) along with multi level profit centre processing.
An extra posting step (via GLO305) is required for General Ledger interface.
Add indirect expenses allocation definition
- In the menu expand, Base Modules > General Ledger > Other > Indirect Expense Allocation > Period End Processing and then double-click GL Indirect Expense Allocation Maint. GLM150 Indirect Expense Allocation Maintenance panel appears.
- Click Add.GLM150 Indirect Expense Allocation Maintenance panel is displayed in add mode.
| Field | Description |
| Sequence | The sequence number is given to identify the order of priority in instances where multiple definitions exist. The lower the number the higher the priority. In Indirect Expense Allocation Entry this sequence number means in what order this definition is to be within each defined level. |
| Level & Description | Level and description of each expense allocation definition. |
| Journal type | Journal type applicable to the indirect expense allocation definition. |
| Company | The Company from which Indirect Expenses is retrieved from. |
| Profit centre lvl 1 – lvl 3 | From/To Profit centre levels used for reporting purposes. |
| Profit group | A range of Profit Groups can be included in the allocation. |
| Profit centre | Enter a valid Profit Centre code or leave blank to select all Profit Centre codes to be included in the allocation. |
| Major a/c | Major Account Numbers can be included in the allocation. |
| Minor a/c | Minor Account Numbers can be included in the allocation. |
| Brkdown code | Indirect expenses can be distributed from one profit centre to several other profit centres. How the values are distributed is based on user defined Codes that specify the required percentage distribution which must total 100%. Applicable General Ledger accounts are coded with a Breakdown Code. The distribution of Indirect Expenses can take place at any time by running the allocation process found in the G/L Period End Processing module. When this process is run, a reversing journal is created against the original General Ledger account, and allocation journals are generated for the various profit centres. Entry of a Breakdown code is optional. |
| Profit centre | This is the Profit Centre to be used in the Reversal journal. |
| Major a/c | This is the Major Account to be used in the Reversal journal. |
| Minor a/c | This is the Minor Account to be used in the Reversal journal. |
- Key in all relevant fields and click OK to confirm the entries of all fields.
| Field | Description |
| Total percentage | This is a calculated Percentage Total and must equal 100% to complete the setup definition. |
| To profit centre | This Profit Centre code identifies the profit centre to which indirect expenses are distributed. |
| To major account | Enter a valid Major Account code or enter a wildcard ‘******’ to accept all major accounts within the profit centre. |
| To minor account | Enter a valid Minor Account code or enter a wildcard ‘******’ to accept all minor accounts/major accounts within the profit centre. |
| Percentage allocation | This is the percentage rate which the system uses to calculate the expense allocation for a specific profit centre. |
- Key in all required fields and Click OK to confirm. The total percentage field must equal 100% before this indirect expense allocation definition can be filed. An indirect expense file listing can be printed at this point if required. New Indirect Expense Allocation definition is added.
