The Cost Allocation module helps you distribute and track costs across departments, projects, or cost centers in a structured way. It ensures that expenses and revenues are assigned correctly, enabling accurate reporting and better financial control.
With Cost Allocation, you can:
Define Cost Categories (e.g., Travel, Utilities, Salaries).
Create Allocation Rules to distribute costs automatically.
Allocate costs to Departments, Projects, or Business Units.
Monitor Cost Allocation Reports for transparency and accountability.
The Cost Allocation process generally involves:
Defining Cost Structures – Identify which expenses or revenues need allocation.
Setting Allocation Rules – Decide how costs should be split (e.g., percentage, ratio, headcount).
Applying Allocations – Distribute the defined costs across target entities.
Reviewing Reports – Validate allocations with reports and dashboards for accuracy.
This module ensures that shared expenses (like office rent, admin salaries, or utilities) are fairly distributed, giving you a clearer picture of departmental profitability and project costs.
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