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COST ALLOCATIONS

Department of Finance and AdministrationOffice of the Mississippi Management and Reporting System

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Our Objective: Cost Allocation Process• Introduce MAGIC Assessment Concepts to a Wider

SoMS Audience

• Provide a Real Example (DHS) as Proof of Concept

• Enable Other Selected Agencies to View Results

• Provide a Forum for Feedback

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• Provide a Forum for Feedback

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Our Agenda: Cost Allocation Process• Introductions

• Agenda

• Glossary

• ONE TIME SETUP -- Creating Master Data

(We needs lots of master data to make MAGIC work!)

• Cost Incurred – Expenses Post to Cost Center

• Update/upload of Actual Statistical Key Figures (Metrics)

T ti R All ti

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• Testing Run Allocation

• Posting Accrual Allocation

• Reviewing Reports

• Allocation Reversals

• Q&A

Glossary of Terms: Cost Allocation• Controlling – the sub-ledger where expenses can be re-allocated among

different cost objects

• Sender – the designated cost collector for the costs to be distributed

• Cost Center – Permanent cost collector

• Internal Order – Simple cost collector

• Receiver – A set of Cost Centers, Internal Orders and/or WBSs that are to

• Statistical Key Figure A way of recording activity details

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• Statistical Key Figure – A way of recording activity details

• Cycle – The subset of a assessment that takes the cost recorded on a

sender and prorates that over a designated method (SKF) and posts to a

• Cost Element – The Controlling version of the general ledger account

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Cost Allocation ProcessCreate Master Data

Costs Incurred

Post Actual

Review Reports

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Test Run Allocation

Update Actual Key Figures (Metrics)

Post Actual Allocation

Master Data Requirements• Cost Center Group

• Internal Order Group

• Cost Element Group

• Statistical Key Figure

• Assessment Cost Element

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• Sender Cost Center

• Sender Internal Order

• Receiver Internal Order

• Receiver Cost Center

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DHS Cost Allocations SpreadsheetReceiving

Cost Element

Sender Cost Center g

Internal Order Group

Receiving Cost Center Group

Stat Key Figures

ElementCenter

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DHS Assessment example

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Cost Allocation ProcessCreate MasterCreate Master Data

Costs Incurred

Post Actual

Review Reports

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Test Run Allocation

Update Actual Key Figures (Metrics)

Post Actual Allocation

Cost Center Group

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Internal Order Group

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Cost Element Group

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Cost Element

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Cost Allocation ProcessCreate Master Data

Costs Incurred

Post Actual

Review Reports

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Test Run Allocation

Update Actual Key Figures (Metrics)

Post Actual Allocation

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Expenses Posted to Cost Center

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Expenses Posted to Cost Center

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Cost Allocation ProcessCreate Master Data

Costs Incurred

Post Actual

Review Reports

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Test Run Allocation

Update Actual Key Figures (Metrics)

Post Actual Allocation

Statistical Key Figure

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Stat Key Figure upload file

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Stat Key Figure upload screen

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Uploaded Stat Key Figures

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Review of Stat Key Figure Posted Documents

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Cost Allocation ProcessCreate Master Data

Costs Incurred

Post Actual

Review Reports

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Test Run Allocation

Update Actual Key Figures (Metrics)

Post Actual Allocation

Cost Allocation ProcessCreate Master Data

Costs Incurred

Post Actual

Review Reports

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Test Run Allocation

Update Actual Key Figures (Metrics)

Post Actual Allocation

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Executing Assessment

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Assessment Posting Overview

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Sender List

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Receiver List

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Segment List

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Posting Documents

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Posting Documents

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Cost Allocation ProcessCreate Master Data

Costs Incurred

Post Actual

Review Reports

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Test Run Allocation

Update Actual Key Figures (Metrics)

Post Actual Allocation

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Cost Center Report

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Internal Order (Grant) Report

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Allocation Reversals

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Allocation Reversals

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Allocation Reversals

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Allocation Reversals

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Allocation Reversals

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Questions

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