Automatic Cost Center Distribution on Purchase Invoices Created from the Contract
When you create a Purchase Invoice from the Work Items tab of a construction contract, the system assigns the Cost Center of each invoice line automatically, based on the work item the material came from and the project Cost Tracking Level. If the material comes from more than one work item, its value is distributed across cost centers automatically.
Table of Contents
When Automatic Distribution Applies
- When you create the purchase invoice from the Purchase Options button in the contract Work Items tab. Steps in Creating Purchase Documents from Contract Work Items.
- It does not apply when you add a purchase invoice the usual way from the Purchases menu.
Cost Tracking Level
The Cost Tracking Level is set in the construction project data and decides the cost center chosen for each material:
| Cost Tracking Level | Cost center chosen for the material |
|---|---|
| Project | The project cost center, for all materials. |
| Tenders | The cost center of the tender the work item belongs to. |
| Work Item | The cost center of the work item itself. |
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Note: The default cost tracking level for a new project is Work Item. It cannot be changed after a contract in the project is activated or cost center transactions are recorded; the field appears locked.
Material from One Work Item
If the material exists in one work item only, that work item cost center appears in the Cost Center column of the material line at 100%.
Material from More Than One Work Item
If the same material exists in more than one work item, it is added in one line with the total quantity, and the line value is distributed across the work items cost centers based on the material cost in each work item out of its total cost:
- If the work items share the same cost center, their percentages are added up under one cost center.
- If the material comes with different units, it is added in separate lines, and each line distribution is calculated on its own.
Example: A brick material exists in two work items, costing 3,000 in the first and 1,000 in the second, and each work item has a different cost center:
| Work item | Material cost in the work item | Cost center percentage in the invoice |
|---|---|---|
| Concrete Foundation | 3,000 | 75% |
| Masonry Works | 1,000 | 25% |
Reviewing and Editing the Distribution
- In the material line of the invoice, click Multiple in the cost center column.
- A table appears with the Cost Center, Percentage, and Amount of each center, and the Total at the end.
- Edit the percentage or amount, or click Add Cost Center to add another center.
- Save the invoice with Save.
FAQs
Are cost centers distributed automatically in a purchase request or purchase order?
No. Automatic distribution across more than one cost center applies only to purchase invoices created from the contract work items.
How is each cost center percentage calculated?
Based on the material cost in each work item out of the material total cost in the selected items; work items sharing the same cost center are added up.
Can I change the cost center the system chose?
Yes. Click Multiple in the material line and edit the percentages or centers before saving the invoice.
Where do I change the cost tracking level?
From editing the construction project data, before activating any contract in the project or recording cost center transactions.