Allocate costs using distribution set

Define a distribution set to split cost allocations automatically for invoice lines with allocation type as cost center or general ledger account.

Before you begin

Role required: sn_ap_apm.admin

Procedure

1. Navigate to Source-to-Pay workspace > All > Accounts Payable Operations > Distribution Sets.
2. Select New.
   The distribution set form view appears. For more information on the form, see Distribution set form
3. Select the Template check box if you want the distribution set to be applied as a template to the cost allocation record.
4. Select Save.
   The Convert Template pop-up appears. You’ll be prompted with a message "Converting this distribution setup to a template removes all allocation percentage from the distribution line. This action can’t be undone".
5. Select Create template.
   For distribution set with template, if there’s distribution lines created, by default, the distribution set is active. For non-template, if the allocation percentage doesn't sum upto 100%, then the distribution set remains inactive else it is saved as active.
6. Select Submit.
   The distribution set is created.
7. Select the distribution set for which you want to create distribution lines.
   1. Select New.
      A distribution line form appears. For more information on the distribution line form, see Distribution set form.
   2. Allocate the cost and split the invoice line amount by cost center or general ledger account.
   3. Select Submit.
      After a distribution line is submitted, it’s applicable for new invoices only and unavailable for existing invoices.
8. To apply distribution set manually for an invoice line, select Invoice line> Cost allocation> New.
   Create a New Invoice cost allocation form appears. You can choose Allocation type as Distribution set. For more information on the form, see Create invoice cost allocation form.

   If a distribution set is created for cost center, then for subsequent cost allocation, the allocation type is cost center by default.

   If a distribution set is created for general ledger account, then for subsequent cost allocation, the allocation type is general ledger account by default.

9. Select Save.

Result

Distribution set automates cost allocations. Each cost allocation record displays the source whether it’s entered manually, derived from a purchase order, or associated with a specific distribution set number confirming complete traceability.

Related reference

• Create invoice cost allocation form