1. Project Accounting in
Microsoft Dynamics SL 2015
04 | Allocator

2. Kim Bateson | Senior Consultant for Microsoft Dynamics SL
04 | Allocator
Kim Bateson | Senior Consultant for Microsoft Dynamics SL

3. Module Overview Overview of Allocator Using Allocator
Setting up Allocator

4. Overview What Can Allocator Do? Type of Project and Billing
Allocation Methods
Posting Options

5. Monthly Processes Overview
Convergence 2013
5/11/2019
Monthly Processes Overview
Create Financial Transactions
Allocation Processor
Follow Billing workflow and process
Financial Transaction Transfer
Indirect Rate Processor
Close Project
Create and Post Timecards
Finalize GL Balances
Create and Post expense Reports
© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

6. What Can Allocator Do? Create Transactions in GL and Project
Billing lines
Fees
Apply
Indirect cost such as Fringe, OH, GA
Reclassify
Records such as unbilled receivables or Work in process

7. Type of Project and Billing
Time and Materials (TM)
Costs posted throughout the month
Allocator apply billing rates
Flex Billings uses billing transactions created by allocator
Cost Plus (CP)
Same as Time and Materials except Allocator applies indirect rates
Fixed Price (FP) -costs created through month similar to TM
Fixed price billing amounts are created directly in Flex Billings
Allocator may be used for costs billable in addition to fixed price
If Allocator is used, additional billing items can loaded into Flex Billings and added to the fixed billing amounts

8. Relationship of Allocator and Billing
Time and Materials
Allocator creates transactions to Unbilled AR and Unbilled Revenue (or Revenue)
Flex Billings relieves Unbilled AR and Unbilled Revenue and posts to AR and Revenue
Cost Plus
Same as Time and Materials
Fixed Price
Same as Time and Materials for direct costs are created through allocator for purposes of billing
Fixed Price portion of invoice posts to AR and Revenue

9. Allocation Methods Time and Materials
Cost Type Billing Method
Allocation Setup
Labor Units
Subcontract Units or Amounts
Material/other Cost + Markup
Travel costs Billed at cost
Travel time Units
NOTE – Allocator applies billing rates based on Allocation Method Setup Rules

10. Allocation Methods Cost Plus
Cost Type Billing Method
Allocation Setup
Labor Cost + Indirect Cost
Subcontract Cost + Indirect Cost
Material/other Cost + Indirect Cost
Travel costs Cost + Indirect Cost
NOTE – allocator applies all the indirect costs based on Allocation Method Setup rules
Timecards
Timecards or AP vouchers
Purchase Order/AP voucher
Expense Reports

11. Allocation Methods Fixed Price
Cost Type Billing Method
Allocation Setup
Labor Fixed Amount *
Subcontract Fixed Amount *
Material/other Cost **
Travel costs Cost **
*NOTE – Labor and Subcontract will be billed in Flex Billings based Percent Complete or Scheduled Billings
**NOTE – Material and Travel will be run through Allocator to apply billing rules if Fixed Price Plus travel

12. Posting Project Series Project Payroll Allocator Inventory Purchasing
Convergence 2013
5/11/2019
Posting
Project Series
Accounts Payable
Sample GL Postings:
GL Acct - Description
Unbilled AR (1190) – ($5550)
Unbilled Rev (3032) - $5550
Project
Payroll
Allocator
Inventory
Purchasing
General Ledger
Sample PROJECT Postings:
Acct Category
UNBILLED AR – ($5550)
UNBILLED REV $5550
Accounts Receivable
General Ledger
© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

13. Posting options Unbilled AR and Unbilled Rev Unbilled AR and Revenue
Allocator
DR - Unbilled AR
CR - Unbilled Revenue
Flexible Billings
CR - Unbilled AR
DR - Unbilled Revenue
DR - AR
CR - Revenue
Allocator
DR – Unbilled AR
CR – Revenue
Flexible Billings
CR – Unbilled AR
DR - AR

14. Using Allocator Allocation Method Setup Allocation Processor
Recalculation

15. Allocation Method Setup Roadmap for creation of billing lines, fees, indirect costs, etc.
5 Parts:
Part 1 – Select Account Categories to be allocated
Part 2 – Define how accounts are allocated and rates
Part 3 – Define Project posting
Part 4 – Define GL posting
Part 5 – Define detail of postings

16. Allocation Method Setup – Part 1 Identify Account Categories
All allocations are based on account category postings

17. Allocation Method Setup – Part 2
Define how accounts are allocated and rates

18. Allocation Method Setup Posting options
Three options for posting in Allocations
Post to the BOTH project and GL (Example - Revenue, Unbilled, WIP)
Post to Project Only (Example – Fees, Indirect Costs)
Post to General Ledger Only (Example – Indirect costs to contra accounts)

19. Allocation Method Setup Posting Options
We often post to the BOTH project and GL (Example - Revenue, Unbilled, WIP)
Post to Project Only (Example – Fees, Indirect Costs)
Post to General Ledger Only (Example – Indirect costs to contra accounts)

20. Allocation Method Setup – Part 3 Posting to Project
Define Project Posting
Post and offset accounts
Optional to have single posting (ex indirect costs)

21. Allocation Method Setup – Part 4 Posting to General Ledger
Define GL account posting
Allowed to use masking

22. Allocation Method Setup – Part 5 Define Detail for postings
Detail boxes affect how billing records display
Full Detail is required for Time and Material Project
Cost plus projects uncheck Full Detail and Unit Postings for Indirect Postings

23. Allocation Processor How it finds data, how it finds rates
Step thru example with results so they can see the source records in Transaction detail inquiry
Then run allocator – show preliminary report
Run in Final
Show transaction Detail Inquiry with new data set

24. Sample Data for Time and Materials Project
Direct Labor – 40 units, $800
Subcontract – 10 Units, $600
Travel Expense - $250
TOTAL costs = $2150
Bill $ 550
Bill $4000
Bill $ 750
Bill $ 250
TOTAL billing = $5550

25. Allocation Processor

26. Allocation Processor

27. Allocation Processor

28. Recalculation Recalculate when rate changes have occurred Key Fields
Period Range
Date Range
Posting period

29. Setup Up Allocator Rate Type Definition Rate Table
Multi-Level Rate Entry
Project Maintenance
Auto Allocation
Indirect Rate Calculator

30. Setup and Workflow ? Setup Process Postings Rate Type Definition
Convergence 2013
5/11/2019
Setup and Workflow
Setup
Process
Postings
Rate Type Definition
Alloc Method Setup
Allocation Processor
Project Transactions
Alloc Key Definition ?
General Ledger Transactions
Alloc Rate Table Definition
KIM: Slide
Audience Participation: How many have FTT on “Automatic”?
Gail: So Kim, what is it that tells the system that records should flow to Project?
Alloc Multi Level Rate Entry
© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

31. Indirect Rate Calculator
Used by project companies that need report indirect rate amounts on their Project Job Summary report based on Actual costs posted in General Ledger
This process reads the current General Ledger Allocation Group tables and calculates the source amounts, basis amounts (or factors), and indirect rates.
After calculating the rates, the process can also produce the Statement of Indirect Expenses (PA ).
This is the last process run prior to closing Project Controller each period

32. Statement of Indirect Expenses

33. Monthly Project workflow
Convergence 2013
5/11/2019
Monthly Project workflow
Create Financial Transactions
Allocation Processor
Follow Billing workflow and process
Financial Transaction Transfer
Indirect Rate Processor
Close Project
Create and Post Timecards
Finalize GL Balances
Create and Post expense Reports
© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

34. Indirect Rate Calculation
Convergence 2013
5/11/2019
Indirect Rate Calculation
Setup
Process
Reporting
GL Allocation Group Maintenance
Indirect Rate Processor
Statement of Indirect Expenses:
Indirect Rates based on GL postings ?
Project Alloc Method Setup
Job Summary Report: Show indirect costs applied to the project
Account Category Maintenance
© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

35. What We Learned – Module 4: Allocator
Allocator Relationship to Billing
Understanding Allocation Methods
Setup and Workflow
Options for Postings
How to use Indirect Rate Calculator

36. What We Learned – Module 1: Microsoft Dynamics GP Overview
Understand some of the key functionality available in Microsoft Dynamics GP
How transactions flow and integration occurs within the application
Identify options for user’s to personalize how the product works
Understand basic security options in Microsoft Dynamics GP