Understanding Expense Spreading
Periodically, you must spread costs across active harvest records that do not accrue to the harvest directly from operations that are performed on the harvest. For example, you might allocate indirect costs, such as utility expenses, overhead costs, equipment maintenance, taxes, depreciation, and general labor and administration costs to harvests. These costs are allocated per acre. To determine the rate per ton of harvested product, the total annual expenses for a harvest block is divided by yield in tons. Without the ability to spread expenses, harvest costs are understated in the system.
You can use the Inventory by Vessel View program (P31B81) to locate the harvests to which you want to spread expenses. To locate harvests, you use either the Harvest check box on the form or the processing option on Vessel Class Search tab. You can select multiple harvests.
You spread expenses using the Expense Spread grid on the Inventory by Vessel View form. This area of the form becomes available to use if you set the Enable Expense Spreading processing option for the Inventory by Vessel View program. In the grid, the system displays the expenses for the selected harvests by cost component.
To spread expenses to harvests, you can use any configured operation that you have set up to allow changes to lot costs. After you select harvests for expense spreading, you access the Create Operation or WO from List program (P31B78) to generate the operations that allocate the costs to the different cost components of the harvest or harvests. When you complete this step, the system notifies you about the number of operations that were created. You can review the expense spreading operations on the Search For Operations form.
If you locate harvests using the EUR field, the system displays costs by the portion of the cost attributed to the EUR. Costs spread by EUR are spread proportionately to the EUR quantity, not the harvest quantity.