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Can GP support cost allocations during the invoicing process?  For instance, we sell to the same customer where product sold could be in multiple divisions.  With GP referencing the "Customer" card GL strings before the "Item" card GL strings, specific expenses (such as brokerage, trade discounts, etc.) are posted to a particular account, and during month-end close, we have to manually allocate the expenses from the default account to the appropriate division via journal entry.  Any assistance would be appreciated!

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Taylor Kraynak
Oppenheimer Companies, Inc.
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Good afternoon Taylor. GP has a landed cost function where various costs can be added at the item level, po level or when receiving. Brokerage, customs, freight, etc are all able to be tracked and added though the Landed cost functions.

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Matt Pilliod
Steiner Tractor Parts
Lennon MI
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Original Message:
Sent: Jan 12, 2023 05:19 PM
From: Taylor Kraynak
Subject: Cost Allocations during Invoicing Process

Can GP support cost allocations during the invoicing process?  For instance, we sell to the same customer where product sold could be in multiple divisions.  With GP referencing the "Customer" card GL strings before the "Item" card GL strings, specific expenses (such as brokerage, trade discounts, etc.) are posted to a particular account, and during month-end close, we have to manually allocate the expenses from the default account to the appropriate division via journal entry.  Any assistance would be appreciated!

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Taylor Kraynak
Oppenheimer Companies, Inc.
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Taylor,

I suggest you take a look at a product named Smartpost by eOne Solutions.  Great product.  Great company.  Gives you the ability to control the distributions/allocations at the transaction level (during user transaction entry) including Sales Transaction Entry.  Assuming either your Sales Orders are entered by a user and then transferred to a Sales Invoice or your Sales Invoices are enterer by a user.

You may also accomplish this with allocation accounts in the General Ledger.  They can be fixed (set percentages) or variable (based on other GL accounts).  This is out-of-the-box functionality within GP.

Either solution is dependent on the data you have in GP and not on tribal knowledge or work instructions.

Maybe if you share with the group how your month-end calculations are determined we can give a more refined solution.  For instance, how do you determine the 'division' allocation?

Chris

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Chris Donnelly
Director of Business Applications
Healthmark Industries
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Original Message:
Sent: Jan 12, 2023 05:19 PM
From: Taylor Kraynak
Subject: Cost Allocations during Invoicing Process

Can GP support cost allocations during the invoicing process?  For instance, we sell to the same customer where product sold could be in multiple divisions.  With GP referencing the "Customer" card GL strings before the "Item" card GL strings, specific expenses (such as brokerage, trade discounts, etc.) are posted to a particular account, and during month-end close, we have to manually allocate the expenses from the default account to the appropriate division via journal entry.  Any assistance would be appreciated!

------------------------------
Taylor Kraynak
Oppenheimer Companies, Inc.
------------------------------

Thank you for your message Chris!  Essentially what we are trying to accomplish is we have items on the same invoice that belong to different divisions, and we would like to split out costs based on the item level.  In the below screenshot, item number 10020 belongs to one division, and the other 4 item numbers belong to a different division.

In the case of brokerage, we set-up our brokers as vendors which connects to the salespersons using the "Salesperson" card which connect to the item.  Since our brokers sell products on our behalf to multiple divisions, the GL strings for all brokers default to a singular account.  During month end close, we use Excel to manually allocate the total brokerage expense to the various divisions based upon cases sold.

 

Instead of brokerage defaulting to a singular account, we would prefer a logical and automated way to allocate these costs to the respective divisions.  In addition to brokerage, we also would need to apply similar logic to our trade and cash discounts.  Would Smartpost work for this?

Thanks,

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Taylor Kraynak
Oppenheimer Companies, Inc.
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Original Message:
Sent: Jan 16, 2023 08:04 AM
From: Chris Donnelly
Subject: Cost Allocations during Invoicing Process

Taylor,

I suggest you take a look at a product named Smartpost by eOne Solutions.  Great product.  Great company.  Gives you the ability to control the distributions/allocations at the transaction level (during user transaction entry) including Sales Transaction Entry.  Assuming either your Sales Orders are entered by a user and then transferred to a Sales Invoice or your Sales Invoices are enterer by a user.

You may also accomplish this with allocation accounts in the General Ledger.  They can be fixed (set percentages) or variable (based on other GL accounts).  This is out-of-the-box functionality within GP.

Either solution is dependent on the data you have in GP and not on tribal knowledge or work instructions.

Maybe if you share with the group how your month-end calculations are determined we can give a more refined solution.  For instance, how do you determine the 'division' allocation?

Chris

------------------------------
Chris Donnelly
Director of Business Applications
Healthmark Industries

Original Message:
Sent: Jan 12, 2023 05:19 PM
From: Taylor Kraynak
Subject: Cost Allocations during Invoicing Process

Can GP support cost allocations during the invoicing process?  For instance, we sell to the same customer where product sold could be in multiple divisions.  With GP referencing the "Customer" card GL strings before the "Item" card GL strings, specific expenses (such as brokerage, trade discounts, etc.) are posted to a particular account, and during month-end close, we have to manually allocate the expenses from the default account to the appropriate division via journal entry.  Any assistance would be appreciated!

------------------------------
Taylor Kraynak
Oppenheimer Companies, Inc.
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Glad to help Taylor...

Woops.  The product is named Flexicoder by eOne Solutions.

Cannot say for sure that this addresses all of your challenges.  But, I'm pretty sure you can download it and try it in your demo company.  It should be able to control distributions based on the salesperson.  I would ensure it works at the sales line level before purchasing.

Good luck!

Chris

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Chris Donnelly
Director of Business Applications
Healthmark Industries
------------------------------

Original Message:
Sent: Jan 17, 2023 04:51 PM
From: Taylor Kraynak
Subject: Cost Allocations during Invoicing Process

Thank you for your message Chris!  Essentially what we are trying to accomplish is we have items on the same invoice that belong to different divisions, and we would like to split out costs based on the item level.  In the below screenshot, item number 10020 belongs to one division, and the other 4 item numbers belong to a different division.

In the case of brokerage, we set-up our brokers as vendors which connects to the salespersons using the "Salesperson" card which connect to the item.  Since our brokers sell products on our behalf to multiple divisions, the GL strings for all brokers default to a singular account.  During month end close, we use Excel to manually allocate the total brokerage expense to the various divisions based upon cases sold.

 

Instead of brokerage defaulting to a singular account, we would prefer a logical and automated way to allocate these costs to the respective divisions.  In addition to brokerage, we also would need to apply similar logic to our trade and cash discounts.  Would Smartpost work for this?

Thanks,

------------------------------
Taylor Kraynak
Oppenheimer Companies, Inc.

Original Message:
Sent: Jan 16, 2023 08:04 AM
From: Chris Donnelly
Subject: Cost Allocations during Invoicing Process

Taylor,

I suggest you take a look at a product named Smartpost by eOne Solutions.  Great product.  Great company.  Gives you the ability to control the distributions/allocations at the transaction level (during user transaction entry) including Sales Transaction Entry.  Assuming either your Sales Orders are entered by a user and then transferred to a Sales Invoice or your Sales Invoices are enterer by a user.

You may also accomplish this with allocation accounts in the General Ledger.  They can be fixed (set percentages) or variable (based on other GL accounts).  This is out-of-the-box functionality within GP.

Either solution is dependent on the data you have in GP and not on tribal knowledge or work instructions.

Maybe if you share with the group how your month-end calculations are determined we can give a more refined solution.  For instance, how do you determine the 'division' allocation?

Chris

------------------------------
Chris Donnelly
Director of Business Applications
Healthmark Industries

Original Message:
Sent: Jan 12, 2023 05:19 PM
From: Taylor Kraynak
Subject: Cost Allocations during Invoicing Process

Can GP support cost allocations during the invoicing process?  For instance, we sell to the same customer where product sold could be in multiple divisions.  With GP referencing the "Customer" card GL strings before the "Item" card GL strings, specific expenses (such as brokerage, trade discounts, etc.) are posted to a particular account, and during month-end close, we have to manually allocate the expenses from the default account to the appropriate division via journal entry.  Any assistance would be appreciated!

------------------------------
Taylor Kraynak
Oppenheimer Companies, Inc.
------------------------------

I agree that either fixed or variable allocations may be the answer.  I would add a caveat that you can lose the "original" entry when using allocation accounts, so using them in conjunction with clearing accounts is a good way to keep the original transaction amount history.

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Kathy Kim
Director of Finance
Donor Network of Arizona
Tempe AZ
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Original Message:
Sent: Jan 12, 2023 05:19 PM
From: Taylor Kraynak
Subject: Cost Allocations during Invoicing Process

Can GP support cost allocations during the invoicing process?  For instance, we sell to the same customer where product sold could be in multiple divisions.  With GP referencing the "Customer" card GL strings before the "Item" card GL strings, specific expenses (such as brokerage, trade discounts, etc.) are posted to a particular account, and during month-end close, we have to manually allocate the expenses from the default account to the appropriate division via journal entry.  Any assistance would be appreciated!

------------------------------
Taylor Kraynak
Oppenheimer Companies, Inc.
------------------------------