Before you define cost allocations, you must understand how cost entries come from the following sources:
It is important to understand the criteria for transferring general ledger entries to cost entries. During the transfer, the Transfer GL Entries to CA batch job uses the following criteria to determine if and how the general ledger entries are transferred.
General ledger entries are transferred if:
General ledger entries are not transferred if:
You can transfer general ledger entries to cost entries.
Before you run the process for transferring general ledger entries to cost entries, you must prepare the transfer to avoid manual correction posting.
Choose the Yes button to start the transfer. The process transfers all general ledger entries that have not already been transferred.
During the transfer, the process creates connections in the entries in the Cost Entry table and the Cost Register table. This makes it possible to trace the source of cost entries.
In cost accounting, you can transfer general ledger entries to a cost type by using a combined posting. You can specify if a cost type receives combined entries in the Combine Entries field in the cost type definition. The following table describes the different options.
Combine Entries | Description |
---|---|
None | Each general ledger entry is transferred individually to the corresponding cost type. |
Day | General ledger entries with the same posting date are transferred as one entry to the corresponding cost type. |
Month | All general ledger entries in the same calendar month are transferred as one entry to the corresponding cost type. |
If you have selected the Auto Transfer from G/L check box on the Cost Accounting Setup page, Business Central updates the cost accounting after every posting in the general ledger. Combined entries are not possible.
During the transfer of general ledger entries to cost entries, Business Central creates connections in the entries in the G/L Entry table, the Cost Entry table, and the Cost Register table to make it possible to trace the connections between cost entries and general ledger entries.
For each general ledger entry that is transferred to cost accounting, Business Central fills the cost Entry No. field.
For each cost entry, Business Central saves the entry number of the corresponding general ledger entry in the G/L Entry No. field in the Cost Entry table.
For combined cost entries, Business Central saves the entry number of the last general ledger entry, which is the entry with the highest entry number.
The G/L Account field in the Cost Entry table contains the number of the general ledger account that the cost entry came from.
For single cost entries, Business Central transfers the posting text from the general ledger entry to the Description text field. For combined entries, the text field shows these entries are transferred as combined entries. For example, for a combined entry for the month of October in 2013, the text can be Combined Entries, October 2013.
In the Cost Register table, Business Central creates an entry with the source transfer from general ledger. The entry records the first and last entry numbers of the general ledger entries that are transferred, in addition to the first and last entry numbers of the cost entries that are created.
About Cost Accounting
Setting Up Cost Accounting
Defining and Allocating Costs
Accounting for Costs
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