costpoint pools series - education.deltek.com
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Pools Series
Costpoint Pools Series: Allocation Mechanisms
Cost Allocation Mechanisms
Facilitate distribution of dollars from cost entities to other entities that receive
provided benefit or service.
The Service Center
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: Stores cost to be allocated to other : I I 1 benefitting entities 1
I I �-----------------------------------------------i Q - Appears on project reports as a direct expense !I I I I �-----------------------------------------------
:9 i 1 No usage of a targeted or budgeted rate 1
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I I 1 Uses "Manage Cost Pools" screen with 1
I I 1 option to use "Units Usage" 1
I I �-----------------------------------------------The Multi-Job Allocation
All allocations are expressed using projects. Multi-jobs have the following functionality:
The allocation The final Costs may Indirect basis is allocation is be allocated costs can expressed in recorded to a at either a be applied amount, hours, project so that current on top of or a percent- the allocation, period or a the direct age. itself, has the year to date costs at These costs appearance of basis,and either the are collected in a direct all actual actual or project- expense on all costs are target rate. account-org project reports. distributed. combinations.
Service Center This department furnishes services to other organizations within the
company. In many organizations, the costs of a particular department are collected, and then, they are allocated to other organizations or projects
based on a rational and consistent methodology.
Costs that are collected and need to be allocated Entities receiving or absorbing the allocation.
Allocated costs are directly charged to a receiving organization and/or project.
The Cost Pools
The cost pool is the most traditional mechanism for use by a government contractor to allocate out indirect expenses. These costs include items such
as fringes and overhead in addition to general & administrative expenses. Rates associated with a cost pool:
The Project Transfer
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: Special one-time form of allocation :�---------------------------------------------- I
: Utilized when Bid & Proposal projects evolve into a ] [ _________________ Billable effort _________________ · __ :
: Useful for erroneous entries or restructuring of project ] [ _______________ structures/numbers _________________ :
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: Operational within the confines of single fiscal year . :�---------------------------------------------- I
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: Uses Project Transfer Information screen -
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Cost Pools Concepts A cost pool enables a user to store the allocation at an actual rate in
addition to a budgeted or target rate for reporting and revenue recognition.
1 Impact on Chart of Accounts
2 General Ledger Driven
3 Unlimited Water Falling
4 Cost Pool Changes Necessitate
Special Processing
5 Supporting Allocation Accounts
6 Correlation with a Fiscal Year
7 Indirect Variances
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Costpoint Pools Series: Processing, Replication, & Specialized Pools
Pool Processing: From Start to Finish The pool processing cycle is relatively straightforward, but specific processes must be run in the appropriate order.
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: ••• Generally, users run through the entire cycle : I I
: once a month at the very end of the month after :: all other transactions have been posted. I I
I _______________________________________________ J
:
•
There usually is no harm in running these : I I
: processes more than once since the compute : : pool rates process can compensate for the : : incremental activity during the month. : I _______________________________________________ J
� Projects> Cost and Revenue Processing> Cost Pool Processing
,d �
Option
Description*
start Ead
Fiscal Year* Period* Subpd* Ending Date
Number* ��-• -� � CJ CJ c--J
CJ
,ers/PoolS* [All
[O andBelow vel* ["""a andBelow
Seq No Pool No •I � C-=:J
D Show Amounts in Thousands � Show Base Account Names
Seq No Pool No � c-=i
"°'m
D Ignore Project Account Group Validation D Delete Prior Non-Primary Allocations
Circular References Having the result of one computation (such as the Pool Debit Allocation Account) within the pool cost or base of the same
pool in which it is associated. Process to check for existence of Circular References
Compute and print the pool rates. 1
Post the pool allocation journal as usual. 2
Examine the Manage Allocation Journal and specifically focus on the 3 columns Current Allocation Amount and Current Amount to Post.
Repeat the process to compute the pool rates. After this run, there 4 should be nothing (O's) 1n the Amount to Post column.
Otherwise, circular reference probability is high. 5 Review all pool cost setup.
Restrict posting to the General Ledger until the 6 test is complete.
Create Pool Links
Build Rate Application Table
Compute and Print Pool Rates
'©, Print Statement of Indirect Expenses
-Print Allocation Journal Edit Report
flJ Reconciliation
Post Pool Journal
Two Allocation Models Due to the nature of an organization, a cost pool is not always as simple as just allocating costs from one place to another.
The two specialized pool allocation models are:
Financial Statement Reclass Pool
The Reclass Pool involves a
"mathematical trick". All of
the allocated costs are sent
to their appropriate
destination, but the contra
amount is temporarily
booked to a "dummy org".
Intermediate Pool Similar to a regular cost pool
except that there is no
actual rate that appears on
the Project Status Report.
The computation of the rate
will only appear on the State
ment of Indirect Expenses.
Computation is for internal
purposes.
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Costpoint Pools Series: Project Transfer & Multi-Jobs
Project Transfer Begins with the existence of two projects. In many cases, the costs start out with a non-billable entity that is subsequently
moved to a new billable effort.
� Projects> Cost & Revenue Processing> Project Transfer Processing> Manage Project Transfer Information
Mapping Constraints The accumulated project costs of a single node or the entire project tree will map to a single project node. In the transfer,
the dollars associated with the Organization may be addressed with three possible options:
OWNING 8 •·•
Costs will be recorded tothe owner of the destination
project regardless of theCosts will be retained by
the originating org.Costs will be re-classed to
one designated org.originating org.
Account Mapping
IThe mapping of the accounts from the source project to the destination project can be accomplished by:
. Individually mapping accounts one for one
Project to Project (Multi-Job) Allocation
By mapping ranges of accounts to single accounts(many to one)
The Multi-Job allocation mechanism is frequently associated with a service center; however, the allocation involves oneoriginating project and multiple benefiting destination projects.
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1 Frequently associated with a service center 1
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: 0 Involves one originating project and multiple :I I
: benefiting destination projects :�-----------------------------------------------
: (!) : : · Based on the Project Ledger :I I
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The transaction information will include:
Three Allocation Basis Methodologies
When designating the base, it is always specified as aspecific project-account-org combination.
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