Using New Cost Posting functionality enabled, Cost or Charge entries are not automatically created when posting the Purchase Invoice or Purchase Credit Memo. After posting a Purchase document, the lines are placed into an intermediate table called RE Detailed Cost Entries.
Before posting a Purchase Invoice it is possible (and recommended) to check which entries will be created in the RE Detailed Cost Entries table. Detailed information about this table can be found here: How to use RE Detailed Cost Entries
Option 1. Using an Allocation Code
- Create a new Purchase Invoice and fill in the required information in the Header.
- On the Lines, enter the standard details such as Type, No., Quantity, and Direct Unit Cost Excl. VAT.
- 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.
- If an appropriate Allocation Code would be entered also, the system would be able to recognise how these amounts should be divided to Lease Units.
- After all lines are completed, post the Purchase Invoice. During posting, RE Detailed Cost Entries are created automatically and can be viewed in the RE Detailed Cost Entries.
Note:
- For Lease Units marked as Parking Unit, costs are not allocated.
- If a line in Purchase Invoice is posted for a single month, the actual number of days in that month is used. If it covers more than one month, the entries are split and recorded month by month in the table.
Example of monthly breakdown (when the registered period is longer than 1 month):
- For partial months, the amount is calculated based on the actual number of days in that month.
- For full months, the calculation always assumes 30 days, ensuring the amount does not depend on the actual number of days in the month and remains consistent across all full months (i.e., a tenant renting for a full month in February does not pay less than for a full month in January).
Option 2. 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 SHOPPING CENTER Lease Units, including both rented and vacant units.
- Leased: Divides the cost only among the rented Lease Units in SHOPPING CENTER.
Option 3. Allocating to a Specific Lease Unit
It is possible to allocate the expenses to a specific Lease Unit. If the Lease Unit field is filled in, a valid Lease Contract Line is not required. Since no Charge entry is created during Purchase Invoice posting, this condition is not necessary. This allows the cost of a specific Lease Unit to be retained by the landlord.
A new field Lease Unit Cost indicates that costs have been registered for a specific Lease Unit. Lease Unit Cost is set to true when the Lease Unit field is filled in on the Purchase Line.
The Lease Unit Cost field has been created, and its values are transferred to related entries.
Note:
Charge entries are no longer created automatically. You must first create Cost entries and then generate Charge entries in Service Journal.
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 Amount without Margin would be 250 Eur, Margin Amount 50 Eur and Amount in RE Detailed Cost Entries: 300 Eur
Note:
The breakdown of margin amounts is the same as for the amounts in the RE Detailed Cost Entries.
More information
Information on creating Cost and Charge Type entries in Service Journal can be found here: How to use New Cost Posting