You can choose from five proration methods for each additional cost, as follows:
- No Proration. If you do not prorate an
additional cost, you expense it to a general ledger account instead.
Note:
When entering additional costs for non-inventory items, you must select No Proration. If you try to prorate by quantity, cost, or weight, the program displays an error message and prevents you from posting the receipt.
- Prorate by Cost.
- Prorate by Quantity.
- Prorate by Weight.
- Prorate Manually.
You cannot change the proration method after you post a receipt.
For examples and information about how costs are prorated, see About Calculating Prorated Additional Costs.
Expensing Additional Costs
If you do not prorate an additional cost, you expense it to the general ledger account you assigned to the additional cost record or to another account you specify when entering the additional cost transaction.
Prorating Job-Related Additional Costs
If you want to allocate an additional cost to several jobs, you need to add a detail line for each job.
Returns and Adjustments
When you return items to which costs were prorated, you specify the reproration method. If you used an additional cost code on the receipt, the program displays the reproration method specified in the additional cost record, but you can select another method for the detail.
You can choose to leave the cost as originally prorated, reprorate it using the original proration method, or expense it to the general ledger account you specify. You can select:
- Prorate—to allocate the returned additional cost amount over the remaining goods on the receipt using the original proration method.
- Leave—if you do not want to reprorate the additional cost to the remaining
goods on the receipt.
Tip: You can also use the Adjustments screen in Inventory Control to write off the additional cost to a general ledger write-off account, rather than add it to other item costs.
- Expense—to debit a general ledger expense account for the returned portion of the additional cost amount. Enter the general ledger account number to which the expensed amount is posted.
Note: You cannot change the proration or reproration method after you post the return.
Editing Tax Distributions
The tax information for each additional cost detail is determined by the vendor's tax group. For each detail, you can change the tax class and specify whether tax is included in the cost amount (if allowed by the tax authority).
You can also check the tax amount for the detail and the allocated, recoverable, and expensed tax amounts. For more information, see About Tax Information and Amounts.
Reporting Prorated Amounts
The Receipts Posting Journal lists the additional cost amounts prorated to each item on a receipt. Use the journal to check the amounts that were prorated automatically during posting or Day End Processing, and to check the amounts you prorated manually.