Assigning Cost Centers to Expense/Revenue and COGS Accounts

Note Note

COGS accounts are relevant only to A/R documents.

End of the note.

When you create an accounting document that involves expense/revenue and cost of goods sold (COGS) accounts (such as deliveries, A/R invoices, returns, A/R invoices + payments, and A/R credit memos), the transaction amounts are:

Posted to the default expense/revenue or COGS accounts
Allocated to the cost centers that are linked to these accounts through distribution rules

The following procedure illustrates how to link different cost centers to the expense/revenue and COGS accounts for all/specific document rows.

Prerequisites

You have defined the required cost centers in Financials Cost Accounting Cost Centers .
You have prepared the relevant accounting document, but have not yet added it to the database.

Procedure

On the Table Format tab of the Form Settings window for the accounting document, select the Visible and Active checkboxes for the Distr. Rule and COGS Distr. Rule columns.

Note
If you selected the In Separate Columns radio button on the Cost Accounting tab of the General Settings window in Administration System Initialization General Settings , select the two checkboxes for the XXX and COGS XXX columns, where XXX is the description of active dimensions.

End of the note.

The two columns appear on the Contents tab of the accounting document.
Assign cost centers to expense/revenue and COGS accounts.
- To assign cost centers for all document rows, proceed as follows:
  1. In the Form Settings window for the accounting document, choose Document Table .
  2. In the Distr. Rule field, assign to the expense/revenue account the distribution rule that is automatically created for the required cost center.
  3. In the COGS Distr. Rule field (such as deliveries, A/R invoices, returns, A/R invoices + payments, and A/R credit memos), assign to the COGS account the distribution rule that is automatically created for the required cost center.
  4. Choose the OK button.
    A system message appears asking whether you want to apply your selections to document table rows.
  5. Choose the Yes button.
    Your selections are applied to all document table rows.
- To assign cost centers for specific document rows, proceed as follows:
  1. In the Distr. Rule field or the XXX field of the row (XXX being the description of the required dimension), assign to the expense/revenue account the distribution rule that is automatically created for the required cost center.
  2. In the COGS Distr. Rule field or the COGS XXX field of the row (XXX being the description of the required dimension), assign to the COGS account the distribution rule that is automatically created for the required cost center.
When the accounting document is complete, choose the Add button.

Note Note

If most of the document rows have the same distribution rule, you can first assign the distribution rule to all document rows and then assign a distribution rule to the exceptional rows.

End of the note.

Result

In the accounting document you created, the selected distribution rules appear in the Distr. Rule and COGS Distr. Rule columns (or XXX and COGS XXX columns, where XXX is the description of the required dimension).
The cost centers are linked to the amounts posted to the expense/revenue and COGS accounts through distribution rules.
These amounts are reflected in cost accounting reports.

More Information

Working with Cost Centers

General Settings: Cost Accounting Tab