If you use one of the Periodic Costing options available in Oracle Cost Management to record costs of goods that you order, then when you manually enter distributions for other charges (tax, freight, or miscellaneous), you need to record the distributions to which they are allocated. Allocation enables you to record accurately all costs associated with a receipt.
If you have not installed Oracle Cost Management or do not use Periodic Costing, you do not need to record these allocations. However, you may find the Charge Allocation and Allocate windows useful for automatically creating charge distributions. If you do not use Periodic Costing, we suggest you read only the following allocation discussions:
If you use Periodic Costing, then you may find all of the allocation discussions helpful:
Use the Allocate window to automatically create allocated tax, freight, and miscellaneous distributions when you are matching to a purchase order or receipt. Payables does not create the distributions until you choose the Match button in the matching window (Match to Receipts window, Match to Purchase Orders window, or Match to Purchase Order Distribution window).
Note: You cannot adjust Adjustment and PO Price Adjustment invoices. For more information, see the Oracle Purchasing User Guide.
Notice that in the matching window displays the Associated Charges region. If you want to change the allocated amounts, deselect the Freight/Misc check box to clear the amounts. You can then re-enter the allocated charge by selecting the Freight/Misc check box and re-entering the allocation information.
Each tax distribution you create using the Allocate window will have the same GL Account as the distribution to which it is allocated.
Note: The Allocate window replaces the Prorate window and the Charge Allocations window, which was in releases before 11i and 12.
Prerequisites
If you are creating tax distributions and if you use Automatic Tax Calculation, disable it for this invoice.
If you are creating tax distributions and you use any other features that automatically create tax distributions, remove all automatically calculated tax distributions from the invoice before you allocate.
To create tax, freight, or miscellaneous distributions by using the Match window:
In the Invoices window, enter all basic invoice information. If you are allocating freight, do not check the Create Freight Distribution check box.
From the Match poplist, choose the document you want to match to (Purchase Order or Receipt), and choose the Match button.
Use the find window to navigate to the matching window.
In the window in which you are matching, select the record to which you want to match and allocate.
Select the Allocate check box. The Allocate window opens.
For each charge you want to allocate, do the following:
Select the check box next to the charge: Tax, Freight, or Miscellaneous.
Enter the charge amount.
Payables enters this value in the Tax Code field of the distributions it creates, and in the Tax Code field of the allocated distribution.
(Optional) Enter a Description Prefix Payables constructs the descriptions of the new distributions by appending the Description Prefix you enter to the description of each distribution you prorate to.
Choose the OK button to save your work. You can review the allocation amounts in the Allocations region of the matching window.
Payables creates allocated charge distributions for you when you save the match.
The top part of this window describes the charge that is allocated. The Allocations region of this window shows the distributions to which you can allocate the charge, and the amount that is allocated.
Type. The type of charge: Tax, Freight, or Miscellaneous.
Tax Code.
For a Tax charge: Tax code value associated with the tax charge.
For a Freight or Miscellaneous charge: Tax code value applicable to the freight or miscellaneous distribution. This tax code value will be added to the freight or miscellaneous distribution if you are creating it by using this window.
Amount. Amount of the tax, freight, or miscellaneous charge.
Allocated Total. Sum of the amounts you are allocating (values in the Allocated Amount fields). To save the allocation, this amount must equal the value you entered in the Amount field.
Prorate. Use this button to prorate the charge amount across all eligible lines.
(Check box) Indicates that a distribution is selected for allocation.
Num. Distribution number of the eligible distribution.
Type. Type of the eligible distribution. You can allocate Freight and Miscellaneous charges to Item distributions only. You can allocate Tax charges to Freight, Miscellaneous, Item, or Prepayment distributions.
Description. Description of the eligible distribution.
Amount. Amount of the eligible distribution.
Allocated Amount. Amount allocated to the distribution. If you are currently allocating by proration, leave these fields empty. After you choose the OK button to allocate, Payables calculates the prorated amounts and populates these fields for you.
New. Allocates the charge amounts to selected distributions and clears the Charge Allocations window so you can allocate new charges. This is located at the top of the application.
Select/Unselect All. Selects or deselects all eligible distributions.
Cancel. Discards any changes and closes the window.
OK. Allocates the charge amounts to selected distributions and closes the window.
Prorate. Is a button in the Allocations window.
CANCELLED INVOICES. You cannot modify allocations if the invoice is cancelled.
PAID INVOICES. If the invoice is partially or fully paid and the Allow Adjustments to paid Invoices Payables option is not enabled, you cannot create new charges in the Allocations window.
APPLIED PREPAYMENTS. If a prepayment invoice has been partially or fully applied, you cannot create new charges in the Allocations window.
ITEMS MATCHED TO MULTIPLE PO DISTRIBUTIONS. You cannot allocate a single nonrecoverable tax distribution to more than one Item distribution if the distributions are matched to different purchase order distributions.
ENCUMBERED TAX DISTRIBUTIONS: You cannot allocate a new Tax distribution to an Item distribution if encumbered Tax distributions already exist for the item distribution. Also, you cannot change allocations for a nonrecoverable Tax distribution if it has been encumbered and if it has already been allocated to purchase order matched Item distributions.
ACCOUNTED ALLOCATIONS. You cannot adjust an allocation after you have accounted for the charge.