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Chargeback and Accrual Table

Chargeback and Accrual Table​

From the menu select General Ledger > Maintenance Functions > Chargeback and Accrual Table

The chargeback tables give you flexibility in reallocating income and expenses between divisions, or between administrative accounts and cost centers, or in accruing specific costs for a specified period of time. You can allocate based on a fixed dollar amount, given percentage, or number of days (accruals). There are four calculation methods for allocating income and/or expenses. Each method is described in detail.

Important Note: You must run the Generate Chargeback or Accrual JV program to create a Journal Transaction for posting.

  1. Enter an ID for this table or press F6 to list the existing tables. The cursor will move to the right of the ID and allow you to enter a description for this table.
  2. Calculation Method - Select the Calculation Method for this chargeback allocation. The options are:
    • Given Percentage from one account to another account.
    • Given amount from one account to another account.
    • Calculated percentage of summarized accounts to a given account.
    • Accrual calculation list.

ClosedGiven Percentage from One Account to Another Account

This method allows you to allocate a percentage of the balance from one account number to another. The Generate Chargeback or Accrual JV program will enable you to dictate whether you want to allocate the balance based on the Period-to-Date (monthly) or Year-to-Date value in the account.

For example, you book all your OFFICE EXPENSES to the account number 1007000 during the month. Once all expenses are in, you reallocate a percentage to four (4) other cost centers. The chargeback table using this method would look as follows:

From Account, From Account Description, To Account, To Account Description, To Percent:

1-00-7000 OFFICE EXPENSES 1-10-7000 OFFICE EXPENSES 25.00

1-00-7000 OFFICE EXPENSES 1-20-7000 OFFICE EXPENSES 25.00

1-00-7000 OFFICE EXPENSES 1-30-7000 OFFICE EXPENSES 25.00

1-00-7000 OFFICE EXPENSES 1-40-7000 OFFICE EXPENSES 25.00

The result of applying this table would be to remove the total amount booked to account 1007000 for the period (month) selected, and move 25% to account 1107000, 1207000, 1307000, and 1407000.

The Allocation grid will contain the following columns:

  1. In the From Account column, enter the G/L Account number ‘From’ which you want to reallocate the funds. This number may be repeated on succeeding lines to reallocate to numerous accounts. You may even reallocate a portion of this account to itself.
    • The From and To Account Description columns display the G/L account descriptions.
  2. In the To Account column, enter the G/L Account number ‘To’ which you want to reallocate the funds.
  3. Enter the Percentage you want to allocate from one account to the other.

ClosedGiven Amount from One Account to Another Account

This method allows you to allocate a given amount from one account number to another. Note: You could also set up a Recurring Journal Voucher to accomplish this same function.

For example, you book all your OFFICE EXPENSES to the account number 1007000 during the month. Once all expenses are in, you reallocate a percentage to four (4) other cost centers. The chargeback table using this method would look as follows:

From Account, From Account Description, To Account, To Account Description, Amount

1-00-7000 OFFICE EXPENSES 1-10-7000 OFFICE EXPENSES 25.00

1-00-7000 OFFICE EXPENSES 1-20-7000 OFFICE EXPENSES 25.00

1-00-7000 OFFICE EXPENSES 1-30-7000 OFFICE EXPENSES 25.00

1-00-7000 OFFICE EXPENSES 1-40-7000 OFFICE EXPENSES 25.00

The result of applying this table would be to remove $100.00 from account 1007000 and move $25.00 into account 1107000, 1207000, 1307000, and 1407000.

The Allocation grid will contain the following columns:

  1. In the From Account column, enter the G/L Account number ‘From’ which you want to reallocate the funds. This number may be repeated on succeeding lines to reallocate to numerous accounts. You may even reallocate a portion of this account to itself.
    • The From and To Account Description columns display the G/L account descriptions.
  2. In the To Account column, enter the G/L Account number ‘To’ which you want to reallocate the funds.
  3. Enter the Amount you want to allocate from one account to the other.

ClosedCalculated Percentage of Summarized Accounts to a Given Account

This method will redistribute amounts from a summarized list of accounts to other accounts based on a percentage calculated by the system.

For example: There are four cost centers (10,20,30,40), each of which has an income account. You wish to reallocate a group of administrative expenses to a single "overhead" account in each cost center proportionate to that cost center's ratio of income to the total income (see below).

The following illustration shows balances in the accounts as of 7/31/03.

Income Accts Balance Ovrhd Accts Balance Admin. Exps  Balance

1-10-4000 1,000.00 1-10-7500 0.00 1-00-6500 500.00

1-20-4000 500.00 1-20-7500 0.00 1-00-6600 200.00

1-30-4000 1,500.00 1-30-7500 0.00 1-00-6700 600.00

1-40-4000 2,000.00 1-40-7500 0.00 1-00-6800 100.00

 -------------  -------------  ------------

Total Income 5,000.00 0.00 1,400.00

From our example, the allocation is distributed based on the formula:

((Income/Total Income) X Total Administrative Expenses)

Using our formula, the system will allocate the $1,400.00 in administrative expenses as follows:

Allocation Acct Amount Formula

1-10-7500 $280.00 ((1,000.00/5,000.00) X 1,400.00)

1-20-7500 140.00 ((500.00/5,000.00) X 1,400.00)

1-30-7500 420.00 ((1,500.00/5,000.00) X 1,400.00)

1-40-7500 560.00 ((2,000.00/5,000.00) X 1,400.00)

 ---------------

 1,400.00

The Allocation grid will contain the following columns:

  1. In the From Account column, enter the G/L Account number ‘From’ which you want to reallocate the funds. This number may be repeated on succeeding lines to reallocate to numerous accounts. You may even reallocate a portion of this account to itself.
    • The From, Distribution and To Account Description columns display the G/L account descriptions.
  2. In the Distribution Account column, enter the G/L Account numbers that will serve as the calculation for the distribution percentage.
  3. In the To Account column, enter the G/L Account number ‘To’ which you want to reallocate the funds.

ClosedAccrual Calculation List

This method allows you to give a list of G/L accounts for which accruals are to be made and a list of accounts to which the accrual will be posted. When this type of calculation is chosen, the system will base its' accrual on the prior period activity in the From Account list, divide it by the number of days in the PRIOR PERIOD and multiply that number times the number of days you have asked it to accrue.

For example, suppose you are accruing wages for August. The balance in the wage account (1007800) for July (prior period) was $50,000.00 and you want to accrue 6 days. The chargeback table is set up as follows:

From Account, From Account Description, To Account, To Account Description

1007800 WAGE EXPENSE 1002600 ACCRUED WAGES

The system will accrue $9,677.42 ((50,000.00/31) X 6) to account 1002600 for August.

  1. In the From Account column, enter the G/L Account number you want to use to calculate the accrual amount. This should be the wage expense account(s).
    • The From and To Account Description columns display the G/L account descriptions.
  2. In the To Account column, enter the G/L Account number ‘To’ which you want to post the calculated accrual.