1. Advanced Cost Accounting Implementation Guide
  2. Example: Variable Numerator

Example: Variable Numerator

ABC Company wants to allocate all indirect selling costs to its sales offices, based on the number of sales orders that are generated by each office; but the company does not want to actually record the allocation. It wants only to evaluate the proposed result. This type of process can be done through JD Edwards EnterpriseOne Advanced Cost Accounting assignments. This variable numerator assignment is defined as follows:

  • Account balances are obtained from the Cost Analyzer Balances table (F1602).

  • The driver is the number of sales orders by business unit.

  • Total indirect selling costs from the Cost Analyzer Balances table are prorated, based on a calculated sales order percentage.

  • The prorated cost is applied to each sales office business unit.