If an amount is in the wrong place in cost accounting, there are three ways to deal with it: correct the primary element, repost it or set up an allocation. Which one is right depends on whether it is an error, a one-off or something recurring. This article helps you decide; how to operate the functions is described in Repost an amount and Set up an allocation rule.
Three situations, three ways
| Situation | Way | Example |
|---|---|---|
| Genuine error | correct it in the primary element (time booking, cost element, line item, posting) | expenses posted to the wrong project |
| One-off | reposting: one amount, manually, with a description | a trip was for two customers; part of a trade fair belongs to a different cost category |
| Recurring | allocation: a rule distributes automatically every period | IT costs to the areas every month |
Rule of thumb: if the same reposting comes back every month, it is no longer a reposting but an allocation.
Why not simply change the original? Because a one-off such as a trip for two customers is one transaction with one expense claim. Splitting it artificially when recording distorts the expense report and the financial accounting view. A reposting leaves the original unchanged and is a separate record with a description and a user.
Seven typical cases
Each case has exactly one way, and each way respects the principle “Σ cost centres = Σ cost objects” (see Two views, one result).
| No. | Problem | Solution | Route | Guide |
|---|---|---|---|---|
| 1 | A trip for two customers is recorded on one project | manual reposting | cost object → cost object | Repost an amount |
| 2 | The department doing the work is to receive a share of the margin | manual reposting, cost category internal charge mark-up | cost centre → cost centre | Repost an amount |
| 3 | IT, administration and management belong to the areas | service cost centre with allocation rule | cost centre → cost centre | Set up an allocation rule |
| 4 | Servers and pools belong to the projects | real cost centre + intermediate cost object with allocation rule | cost object → cost object | Set up an allocation rule |
| 5 | The salary is missing, personnel costs are only estimated | salary cost centre: time bookings relieve it, the remainder is allocated | salary cost centre → cost object | Salary cost centre |
| 6 | Someone works for another area | owner cost centre on the cost object | no posting | Types and structure |
| 7 | A cross-posting from the cost centre to the cost object counts twice | leave the “Cross-posting” switch off | blocked | Two views, one result |
Why case 2 is not a reposting to the project
A developer works 40 hours on a consulting customer project. The project belongs to consulting, so that is where the whole margin ends up. The obvious mistake would be a reposting from development to the project. The posting would then switch views: the cost object total would be too high by that amount, the cost centre total too low.
The margin is a matter between two areas, not a matter for the project. That is why it is reposted from cost centre to cost centre, and the project CM stays unchanged. You decide how large the share is: a fixed mark-up per hour (simple and predictable) or a share of the project CM by hours (fairer, but only properly calculable at the end of the project).
Allocation methods: direct and step-down
The methods differ in whether service cost centres also exchange services with each other.
| Method | How it works | In teamspace |
|---|---|---|
| Direct method | Each service cost centre distributes directly to the final cost centres. Services between service cost centres are ignored. Good for small tenants and clear structures. | ✓ all rules at the same time |
| Step-down method | The service cost centres are distributed one after the other, e.g. first management, then administration and IT. Once distributed, a cost centre receives nothing back. The standard in practice. | ✓ via staggered rule schedules |
| Reciprocal method | Mutual services (IT works for administration and vice versa) are solved simultaneously using a system of equations. | not supported |
This is what a step-down looks like:
| Schedule | Rule | Distributes |
|---|---|---|
| 3rd of the month, 10:00 | management rule | management → administration, IT |
| 3rd of the month, 11:00 | administration and IT rules | → consulting, development, support |
Each rule empties its source completely. After 11:00, all service cost centres are at zero. There are deliberately no fixed percentages: amounts are distributed evenly or by allocation weights.
How to recognise secondary postings
- By the cost category: repostings and allocations use their own cost categories in class 9000, e.g.
9200 Reposting,9310 Allocation administration,9320 Allocation IT. Create a separate cost category for each allocation, then you can see straight away in the movements where an amount comes from. - In the movements: in the detail manager, secondary postings are listed with direction, type and counterpart.
- On the record: manual repostings and automatic allocations are both separate records. The original remains unchanged.
Related topics
- Repost an amount Cost accounting How-to
- Set up an allocation rule Cost accounting Configuration
- Allocate personnel costs via a salary cost centre Cost accounting Configuration
- Two views, one result: the core principle of cost accounting Cost accounting Concept
- Topic: Cost accounting Cost accounting
- Cost centre accounting with teamspace