Distribute Invoice Cost Window - Project PO

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An additional charge, freight, for example, is often charged by the Vendor for a particular Component on the Project Purchase Order.  Recording such a charge is described in the Vendor Invoice Distribution Window.  Sometimes, however, it may be desirable to spread an additional charge from the Vendor across all Components on the Purchase Order such as a single delivery charge that is not itemized per Component.  In such a case, click the Distribute Cost button on the Vendor Deposit, Invoice, or Operating Expense Window when entering a Vendor Invoice on a Project Purchase Order to display the Distribute Invoice Cost Window.  The Distribute Invoice Cost Window is used to allocate the total cost across all Components under a variety of conditions.

 

dist inv cost window

Enter the total amount of the charge from the Vendor into the Distribute Amount field.

 

When the cost is distributed to the Components, Design Manager will automatically create a new Component for the charge that is associated with the Component for the merchandise itself if such an associated Component does not already exist.  The Component Type for these associated Components is determined by the Distribute To selection.  For example, if Freight is selected in the Distribute To menu, Design Manager will create an associated Freight Component for each Merchandise Component on the Purchase Order to properly record the cost.

 

The Add to Existing Amount and Replace Existing Amount options determine whether Design Manager will increase the existing value of the charge or remove the current existing charge and replace it with the new distributed amount.  For example, if the Components on the Purchase Order each already have an associated Freight amount, the Add to Existing Amount will increase the Freight by the distributed amount while the Replace Existing Amount will use only the new distributed amount.

 

Weighted Against and Evenly indicate how the distribution is to occur.  The Weighted Against option will proportionally allocate the Distribute Amount based upon the value of selected Component Type for each Component on the Purchase Order.  Evenly will simply divide the Distribute Amount by the total number of Components and allocate that portion to each Component.  Examples may help in understanding how each selection works.

 

Weighted Against:  There are two Components on the Purchase Order with Estimated Merchandise Costs of 500.00 and 100.00, respectively, the Distribute Amount is 10.00, and Merchandise is selected.  Upon distributing, 8.33 will be allocated to the first Component as follows:  500.00/600.00 X 10.00 = 8.33.  In the same logic, 1.67 will be allocated to the second Component since 100.00/600.00  X 10.00 = 1.67. Note:  If a particular Component does not have any cost of the selected Component Type, it will not receive any of the distributed cost!
Evenly:  If the Evenly option was selected when distributing the same 100.00 against the two Components above, each Component would be allocated 50.00 as 100.00/2 = 50.00.

 

Deciding which distribution should be used comes down to whether or not the actual cost of the charge per Component is of greater importance than having each Component receive a portion of the charge.  If so, the Weighted Against is a more accurate distribution while the Evenly distribution insures that each Component receives at least some portion of the charge.