Prorating Additional Costs on Receipts

You can choose from five proration methods for each additional cost:

• You can choose not to prorate the cost (No Proration), and expense it instead.

Non-inventory items. If you are adding additional costs for non-inventory items, you must choose No Proration. If you choose to prorate by quantity, cost, or weight, the program will display an error message and prevent you from posting the receipt.

• You can prorate by:

• Item cost.

• Item quantity.

• Item weight.

• You can choose to prorate the cost manually.

You cannot change the proration method after you post a receipt.

For examples and information about how costs are prorated, see 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.

Job-related proration. If you want to apportion an additional cost to several jobs, you need to add a detail line for each job.

Returns and adjustments. You specify the reproration (return proration) method (how a cost is reprorated) when you enter a return to a receipt you posted previously or when you return items to which costs were prorated.

If you used an additional cost code, the program displays the reproration method specified in the cost record, but you can select another method for the detail. You cannot change the proration or reproration method after you post the receipt.

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, as follows:

• Select the Prorate option to have the program prorate the "returned" additional cost amount over the remaining goods on the receipt, using the original proration method.

• Select the Leave option if you do not want to reprorate the additional cost to the remaining goods on the receipt.

You can also use the Adjustments form in Inventory Control to write off the additional cost to a general ledger write-off account, rather than add it to other item costs.

• Select the Expense option if you want the program 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.

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 Editing vendor and detail tax information.

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.