TABLE OF CONTENTS
- What are Split Costs
- How to Create a Document with Split Costs
- Creating an Invoice from a Purchase Order Using Split Costs
- How to Track and Manage Documents with Split Costs
- Frequently Asked Questions
What are Split Costs
Split Costs functionality helps you budget and collect analytics in Precoro flexibly and precisely. When you create a PO or an invoice, you can split it into multiple cost allocations and assign different budgets, locations, or custom document fields to these allocations. The document's total is split in a customizable ratio.
A few things Split Costs help you with:
- Creating a single document, even if the costs are divided between several departments or locations.
- Tracking budgets accurately without creating multiple invoices or orders.
- Monitoring and analyzing spending across your company’s units.
- Initiating the correct approval workflow for each cost allocation based on the selected locations and custom fields.
How to Create a Document with Split Costs
Step 1: Start Creating a Document
💡Please note: to enable Split Costs in your compane, contact your Customer Success Manager.
Split Costs are available for purchase orders, service orders, and invoices. You can use both standard and custom document forms to create split documents.
Step 2: Activate the Setting During Document Creation
If your company uses budgets, enable the Split Costs toggle above the Budgets field. The Split Costs section will appear below the Note field. Budgets, locations, and required custom document field values can then be selected for each line of this table instead of the entire document.
If your company doesn’t use the Budgets module, the Split Costs toggle is below the Note field. You can still use split costs to track spending by locations or custom fields.
You can't use Budget Breakdown and Split Costs simultaneously; if you enable Budget Breakdown, the Split Costs toggle will become unavailable.
Step 3: Fill Out the Split Costs Table
In the Split Costs section, create up to 10 lines by pressing Add Row. Then, fill out the required fields. Each line signifies a cost allocation with separate values for standard fields, custom fields, and budget.
💡Please note: you can select one type of budget for all lines in the Split Costs table: either budgets by document fields or budgets by item fields. A document can’t be split between different types of budgets. When filling out the Budgets column, you only see available options in the drop-down list.
When you use budgets by item fields, the costs are allocated according to custom field values selected in items.
When you use budgets by document fields, the document’s total is split between the cost allocations according to the percentage set in the Percentage, % column. By default, the total is divided evenly between the lines, but you can set a custom ratio as long as the sum equals 100%.
Step 4: Create and Review the Document
Once ready, press Create. On the document page, you will see the cards for each cost allocation below the document’s total. They display the following information:- The allocation’s status;
- Selected locations, budgets, and custom field values;
- The allocation’s total.
Step 5: Add Items
Use your preferred way to add items; explore the options in our guides for purchase orders and invoices.
You can select different values of a custom item field for a single item. This allows you to divide a singular item’s cost between budgets. This functionality is available when using budgets by custom item fields.
Choose the options available in the budgets assigned to cost allocations. Once you select the custom field option, choose the budget you want to add the cost to and set the percentage for this particular item.
Step 6: Confirm the Document
Each cost allocation will proceed to the approval workflow set up in your company. You will be able to see the progress in the allocation card status. You can expand the card to see the approval steps for each allocation to which you have access rights.
Creating an Invoice from a Purchase Order Using Split Costs
When you create an invoice from a purchase order, the following rules define your ability to activate or deactivate Split Costs.
- If the order is split, the related invoice is also split. You can't deactivate the Split Costs toggle when creating a related invoice.
- If the order isn't split and doesn't have an assigned budget, you can split the related invoice. However, you won't be able to select budgets for cost allocations.
- If the order isn't split and has an assigned budget, you can't activate Split Costs in the related invoice.
When editing an invoice created from an order, you can adjust the ratio in which the costs are split. The available and used sums in the budgets will be recalculated based on the values set in the invoice.
How to Track and Manage Documents with Split Costs
Cost Allocation Statuses and Approval
Each cost allocation corresponding to a line in Split Costs has a separate status showing its progress. Visit the guides to learn more about PO statuses and invoice statuses.
When approving or rejecting a split document, approvers can select the allocations they wish to approve from those available to them.
Editing and Revising Split Documents
While the document is Pending, the creator can’t adjust Split Costs. To make changes, Revise the document.
When a split document is In Revision, you can modify only the Split Cost lines you have access to. However, you can correct the percentage for all lines if you can access at least one; this allows the sum to be kept equal to 100.
If you have a related PO and invoice with split costs:
- A cost allocation in a purchase order that has a related invoice can’t be deleted.
- If a split invoice is created for a split PO, split costs can’t be deactivated.
Super Users can edit or revise Split Costs in Pending documents.
💡Please note: changes to Split Costs trigger the re-approval process.
Split Costs in Reports
When exporting reports by document, you will see each cost allocation as a separate entry. These lines will have the same number as the split document while displaying the allocation’s field values and totals.
If you assign budgets by item fields to cost allocations and then add multiple values of a custom item field to one item, this item will be displayed as several lines in reports by items.
Frequently Asked Questions