Scenario Example - Defining Dynamic Allocations Based on Items Sold

This topic shows an example of how to define allocations by using the dynamic allocation method. In the example, you change the dynamic allocation of the costs for the SALES cost center to support the new cost object IT EQUIPMENT. IT EQUIPMENT packages have item numbers in the range from 8904-W to 8924-W. You use the previous year’s sales figures to calculate the share. The allocation is posted to the helping cost type 9903.

To define dynamic allocations based on items sold in the previous year

1. Choose the icon, enter Cost Allocations, and then choose the related link.
2. In the Cost Allocation window, choose the New action.
3. In the ID field, press Enter or enter an ID.
4. In the Level field, enter 1.
5. In the Valid From and Valid To fields, enter appropriate dates.
6. In the Cost Center Code field, enter SALES.
7. In the Credit to Cost Type field, enter the cost type 9903.
8. In the Target Cost Type field, enter the cost type 9903.
9. In the Target Cost Object field, choose New to create a new cost object IT EQUIPMENT and fill in fields as necessary. Select IT EQUIPMENT. Leave the Target Cost Center field blank.
10. In the Allocation Target Type field, select All Costs to define how all accumulated costs are allocated.
11. In the Base field, select the allocation base Items Sold (Amount).
12. In the No. Filter field, enter 8904-W..8924-W.
13. In the Date Filter Code field, enter Last Year.

14. Choose the Calculate Allocation Key action to calculate the share.

    IMPORTANT

    Dynamics NAV uses the previous years’ sales figures to calculate a share of 1596.50 LCY with 100 percent for the IT EQUIPMENT packages. This means that all of the items sold last year will be allocated to the cost object IT EQUIPMENT.

See Also

Setting Filters for Dynamic Allocation Bases
How to: Set Up Allocation Source and Targets
Defining and Allocating Costs
Terminology in Cost Accounting
About Cost Accounting

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