Use the EM Allocations Post Options tab to identify the cost code and cost type to which allocations will be posted, as well as the GL accounts debited and credited when processing cost allocations.

A ‘post to’ cost code and cost type must be assigned to all allocations except those with a Basis of ‘Cost’. For cost-basis allocations, if you do not assign a ‘post to’ cost code and cost type, costs will be allocated to the cost types assigned on the Allocation Cost Type tab.

Once you have set up your allocation codes, you can then process cost allocations using the EM Process Cost Allocations form.

Example:

You may have a monthly small tool expense that you want distributed proportionately over all active equipment based on the total monthly cost of all labor posted to the equipment. You would set the allocation up as follows:

Allocation Code:	1
Basis:	Costs
Allocation Cost Type:	1 (Labor)
Date Options:	By Month
Allocate Amount/Rate:	Amount
Equipment to Allocate:	All
Departments to Allocate:	All
Categories to Allocate:	All

Once set up, the Process Cost Allocations form is used each month to run the allocation. If you did not specify an amount for the allocation code, you would specify that each time you run the allocation.

For information on how the allocation is disbursed to jobs, click on the Process Cost Allocations topic below.