How to create Purchase Invoices using Allocation Methods

Learn how to efficiently generate Purchase Invoices by utilizing cost allocation methods.

Table of Contents

Use case: Note:

Once the Cost Allocation Methods are prepared, you can proceed with creating a Purchase Invoice.

Using an Allocation Code

  1. Create a new Purchase Invoice and fill in the required information in the Header.
  2. On the Lines, enter the standard details such as Type, No., Quantity, and Direct Unit Cost Excl. VAT.
  3. Specify additional fields: Service Code, Service Start Date, Service Closing Date, and Property Code.

Service Code. Specify a Service that this amount would be allocated to.

Service Start and Closing Dates. Specify these dates so the system would be able to recognize in what period these amounts have to be included.

Property Code. Select a Building so the system would be able to recognize for which Building these amounts have to be included.

  1. If an appropriate Allocation Code would be entered also, the system would be able to recognize how these amounts should be divided to Lease Units.
  1. After all lines are completed, post the Purchase Invoice. During posting, Cost Type entries are created automatically and can be viewed in the Service Ledger Entries.

Use Area Calculation Type

If no Allocation Code is selected, the system will use the Area Calculation Type field:

  • Leasable: Divides the cost among all BUILDING A Lease Units, including both rented and vacant units.
  • Leased: Divides the cost only among the rented Lease Units in BUILDING A.

Allocating to a Specific Lease Unit

It is possible to allocate the expenses to a specific Lease Unit. In such a case, there must be an existing Lease Contract, and a particular Lease Unit value must be selected on the Purchase Invoice Line.

After posting a purchase invoice, Charge Type entries are created automatically and can be viewed in the Service Ledger Entries.

Adding Margins to Allocated Costs

Define the Margin Amount or Margin (%) to re-invoice the expenses to customers with a markup. If you fill in the amount, the percentage will be calculated automatically, or the amount will be calculated automatically from the percentage.

Use case:

Original cost amount 250 Eur, Margin 20 % 

As a result, base cost would be 250 Eur, margin amount 50 Eur and total amount in Service Ledger Entries: 300 Eur

 

Note:

The amount in Service Ledger Entries will be created together with the associated Margin. Margin values cannot be tracked separately here.

 

Viewing Service Ledger Entries

After posting a purchase invoice with cost allocation, you can review the results in the Service Ledger Entries.

  • Open Service Ledger Entries by search or from Role center.
  • Use filters to find entries for the specific Service, Lease Unit, or date range.
  • The ledger shows how entries were distributed across Lease Units, including any applied margins.

More information

Information on creating Charge Type entries from Cost entries can be found here: How to set up Lease Contract Lines to charge the customer correctly