This document provides information regarding creating Cost Pool Groups.
A Cost Pool Group should be set up (at a minimum) for each legal entity for which indirect rates will be calculated. To set up a Cost Pool Group, navigate to Admin > Setup > Accounting > Cost Pool Groups. Click the +Cost Pool Group link and perform the following:
Enter the required Name and Legal Entity values. A description is optional. click Save.
Note: The Legal Entity cannot be changed once a cost pool definition has been specified as the organizations used in the definition are validated against the legal entity specified here.
Click the edit pencil icon for the desired Cost Pool Group.
Select the Cost Pools tab. Click the +Cost Pool link to add a new cost pool to this group.
Enter the appropriate information and click Save when finished.
Note: Cost Pools must appear in the grid in the order in which they should be calculated. This can be accomplished by adding them in the order they should calculated, or by reordering them using the blue arrow icon. Click the icon to see the popup dialog containing move direction options.
Cost Pool - Description of Cost Pool.
MTD (Month-To-Date) - Typically only used for monthly allocations of intermediate cost pools such as Facilities or IT.
YTD (Year-To-Date) - All cost pools that update rates should use this option.
Note: Posting to the GL is not required to calculate rates except as noted above. The results of all calculations are stored in intermediate tables for use in succeeding calculation steps (e.g., results of fringe allocation will be available for use in subsequent overhead and G&A calculations).
Specify the ACCOUNTand ORGANIZATION combinations that define the Pool. Parent accounts and organizations in the associated Cost Pool hierarchies should be used to simplify entry. Subsequent changes to the hierarchies (e.g., addition or deletion of accounts and organizations from the specified parent) will automatically flow into the cost pool calculations using this approach.
Specify the offset/contra Post Account that should be posted to represent the allocation out of the pool. This will be the account (typically) credited for the allocation out of the pool. It is best practice to use a single contra account (e.g., fringe allocation contra) here so the history of the postings to the original accounts is not lost.
Specify a Post Organization if you want the posting to go to a specific organization. This value is normally left blank, in which case the postings will be made against the organizations of the original pool amounts.
Specify the Account and Organization combinations that define the Base if the Base Allocation Method is Actual Amount or Hours. Parent accounts and organizations in the associated Cost Pool hierarchies should be use to simplify entry. Subsequent changes to the hierarchies (e.g. addition or deletion of accounts and organizations from the specified parent) will automatically flow into the cost pool calculations using this approach.
Specify the Amount values if the if the Base Allocation Method is Fixed Amount or Hours.
Specify the allocation to POST ACCOUNT that should be posted to represent the allocation into the Base of the pool amounts. This will be the account (typically) debited for the allocation out of the pool into the base-related accounts. It is best practice to use a separate allocation to account for each line (e.g. fringe allocation to direct labor, fringe allocation to overhead) here so the results can be used in subsequent calculations.
Specify a POST ORGANIZATION if you want the posting to go to a specific organization. This value is normally left blank if the Base Allocation Method is Actual Amount or Hours, in which case the postings will be made against the organizations of the original pool amounts. If the Base Allocation Method is Fixed Amount or Percent this field is required as no Base Organizations are available.
Once you have set up all cost pools in the cost pool group, they will be available in Financials > General Ledger > Cost Pool Calculation for calculation and later posting as necessary.
The following items must be configured in Unanet prior to setting up Cost Pool Groups:
This function is only available to users with the following roles: Administrator.
Help Documentation - Admin Setup - Cost Elements
Help Documentation - Admin Setup - Cost Structures
Help Documentation - Admin Setup - Cost Pool Groups
KC - General Ledger Guide: Cost Pool Calculations