Distribute Invoice Cost Window

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An additional charge, freight, for example, is often charged by the Vendor for a particular Component on the Project Purchase Order.  Recording such a charge is described in the Vendor Invoice Distribution Window.  Sometimes, however, it may be desirable to spread an additional charge from the Vendor across all Components on the Purchase Order such as a single delivery charge that is not itemized per Component.  In such a case, click the Distribute Cost button on the Vendor Deposit, Invoice, or Operating Expense Window when entering a Vendor Invoice on a Project Purchase Order to display the Distribute Invoice Cost Window.  The Distribute Invoice Cost Window is used to allocate the total cost across all Components under a variety of conditions.


distribute invoice cost window


Enter the total amount of the charge from the Vendor into the Distribute Amount field.


When the cost is distributed to the Components, Design Manager will automatically create a new Component for the charge that is associated with the Component for the merchandise itself if such an associated Component does not already exist.  The Component Type for these associated Components is determined by the Distribute To selection.  For example, if Freight is selected in the Distribute To menu, Design Manager will create an associated Freight Component for each Merchandise Component on the Purchase Order to properly record the cost.  This means you will add a Freight Type cost amount to EACH of the Components listed on the PO.


The Add to Existing Amount and Replace Existing Amount options determine whether Design Manager will increase the existing value of the charge or remove the current existing charge and replace it with the new distributed amount.  For example, if the Components on the Purchase Order each already have an associated Freight amount, the Add to Existing Amount will increase the Freight by the distributed amount while the Replace Existing Amount will use only the new distributed amount.


Weighted Against and Evenly indicate how the distribution is to occur.


The Weighted Against option will proportionally allocate the Distributed Amount based upon the value of the selected choice in the Drop Down for each Component on the Purchase Order.  Choosing PO Cost (Est.) will weigh the amount distributed using the PO Estimated Cost; not the Cost on the Vendor Invoice you are entering.


Evenly will simply divide the Distribute Amount by the total number of Components and allocate that portion to each Component. The Examples below may help in understanding how each selection works.


Weighted Against:  There are two Components on the Purchase Order with Invoice Merchandise Costs of 500.00 and 100.00, respectively; the Distribute Amount is $10.00, and Distribute to Freight is selected along with Weighted against Invoice Merchandise.  Upon distributing, $8.33 will be allocated to the first Component - Freight as follows:  500.00/600.00 X 10.00 = 8.33.  In the same logic, $1.67 will be allocated to the second Component - Freight since 100.00/600.00 X 10.00 = 1.67.

Note:  If a Component does not have a dollar amount in the Cost on Invoice column for this Invoice, then it will not receive any of the distributed cost, unless you were to choose the PO Cost (Est.) choice in the Weighted Against drop down; Or ALL components of that type would have to have a Cost on Invoice amount of $0.00.  If ALL of the same component types cost on invoice fields are left at $0.00, the system will distribute the cost Evenly as described further below.


This weighted against selection allows you to enter an amount to distribute to components that may have already had a vendor invoice against them where their new Cost on Invoice is currently $0.00. The new Cost can distribute to the components based on the Estimated Purchase Order Cost. When the Weighted Against - Component Type Cost on Inv is chosen the Cost on Invoice column for that Component Type MUST have a dollar amount entered.  If only ONE of the PO components has a cost on invoice dollar amount entered greater than $0.00 and that same Type is chosen for the weighted against, ONLY that PO component will received the distribute amount.


Evenly:  If the Evenly option was selected when distributing the same $10.00 against the two Components above, each Component would be allocated $5.00 as 10.00/2 = 5.00.


Deciding which distribution to use comes down to whether or not the actual cost of the charge per Component is of greater importance than having each Component receive a portion of the charge.  If so, the Weighted Against is a more accurate distribution while the Evenly distribution insures that each Component receives at least some portion of the charge.