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I’m wondering how complicated automating a cost reclassification in the general ledger (manual journal entry?). 

We have an new condition where a PO issued by Company “B” for service work performed to upgrade equipment. A piece of the servicing is provided by a third party, paid for on that Company “B” issued PO. For certain vintage units there is an additional charge amount and that amount needs to be charged to a Company “A” account.

What does it take to configure an automatic way to transfer a purchase order/supplier invoice cost from one Company/Department to another Company/Department? 

Hello,
I am not sure what do you really want… You have mention “automating a cost reclassification in the general ledger” and this can be achieved by Automatic Posting Rules, if the reclassification is related to posting code part (like e.g. cost center).

But then you are giving example of company (supplier id) reclassification, if I understood it well, and this looks like something else…

 

Automatic Posting Rules are triggered on voucher when it is updated to GL. voucher row is triggering point and specific combination of voucher type, voucher row accounting code parts combination, transaction code and process code is triggering criteria. If your cost is posted in unique way allowing to identify it, it might be reallocated by APR - but if triggering voucher row is created by posting control -  perhaps same effect can be achieved by posting control setup itself?

 

Hi, If this is a routine - we routinely move cost from company A to company B, we may be able to automate. 

If we hit a given account string, we can allocate that account string balance (at month end) 75% Company A and 25%  Company B, using “Multi Company Allocation”. 

 

If this is transaction X that needs to be be moved or split from company A to B, then that not as easy.. You could probably create a routine triggered by a user, that would “automagically” create a multi company voucher.  But then who approves the charge flowing from company A to Company B? 

 

It could be better if this is transaction by transaction by transaction to ad posting lines to the supplier invoice. In this the posting lines would then flow through an authorization process assuming your using supplier invoice workflow. 

This is routine for a certain Cost Center value pre posting.
Company B creates a Purchase Requisition (PR) with a Pre posting. The PR to PO occurs and the Pre posting is carried to the PO Lines. 
PO is issued and a Supplier Invoice arrives, PO Receipt is made and the Supplier Invoice is matched to the PO Line, PO is closed.

It reads that “Multi Company Allocation” is a route for us. In this instance 100% of the cost of the PO Line is transferred to Company A. 

 

I don’t think there is a supplier invoice workflow other than Mixed Payment, but it’s not my area. 

Thanks.

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