Settlement & Allocation
Cost collected on a collector has to reach where it belongs before the period can close, and an indirect cost center’s cost has to reach a productive one.
12 steps · 10 questions · 8 screens on this shelf
The screens on this shelf
- Settlement Rules Where cost on a collector goes, and in what proportion. A period closed over unsettled orders leaves cost stra
- Settlement Runs Cost moved off collectors to where it belongs. Anything the rules do not apportion is reported rather than sil
- Allocation Cycles Distribution keeps the original cost element; assessment rolls it into one secondary element. The first is hon
- Allocation Segments Who sends, who receives, and what splits between them. Anything less than a 100% sender share leaves a residue
- Fixed Allocation Split Where a driver is not appropriate: 40% to production, 35% to sales, 25% to admin, because that is what the boa
- Allocation Runs A residue above the threshold means the iteration gave up before converging, and the cost left over is strande
- Cost Drivers What causes the cost. Headcount and floor area are statistical keys; purchase orders raised, setups performed
- Driver Values The driver’s value per receiver per period — a statistical key by any other name.
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