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Allocating Overhead Costs to Bulk Wine and Finished Goods

Updated

Customers that have Costing enabled can apportion overhead costs to wines using the Cost Allocation Console. The console lets you allocate and capitalize indirect costs across selected wines. Your indirect costs may include general overhead, or other production costs that aren’t directly attributable to a specific product at the time it was incurred.

Prior to allocating overhead costs, you may want to set up the cost items that you want to use.

To allocate overhead costs to bulk wine and finished goods:

  1. Click More_Options_20200323.pngMore Options in the sidebar.
  2. From the Accounts tile, click Allocate Costs. The Cost Allocation Console displays. 

Cost_Allocation_Console_20200616.png

  1. From the Apportion Type list, select the apportion type you want to perform:
  • By Volume (End of Period) — The weighting uses the volume on site at the end of the period.
  • By Volume Days (Vol x Days) — The total volume as it changes over time, including wine that’s gone at the end of the period, but on site at the start.
  • Manual — You manually adjust the weighting.
  1. Specify the Effective Date.
  2. In the Default Item field, select the cost item. You can create a new cost item by clicking the Plus_in_Green_Circle_20200319.png beside the Default Item field.
  3. In the Cost Allocation Amount field, enter the monthly overhead amount.
  4. Select the bulk wine or inventory item that you want to allocate costs to. 

Selecting_Bulk_Wine_or_Stock_Item_20200616.png

A Weighting value is calculated for each wine based on its volume.

  1. Click Apportion. The amount of each wine’s share of the charges (based on the cost allocation amount) is calculated.

Cost_Allocation_Console_-_By_Volume_Example_20200616.png

You can override a wine’s apportioned amount by entering the amount in the Total field for the wine.
  1. Click Save.

Costs will be passed on as the wine or stock item moves through the system. This allows you to track these costs as the wine moves through the production life cycle.

Selecting Bulk Wine for Apportioning

To allocate costs to a bulk wine, do the following to select the bulk wine:

  1. Click From Search. This button is located in the lower left of the Cost Allocation Console beside the Add Bulk label.

Add_Bulk_From_Search_Button_20200616.png

The Wine Product Period Search Console displays.

  1. Use the filters at the top of the window to search for the bulk wine.
  2. To select individual wines, click the wine to select it, then click Use Selected. To select all wines in the list, click Use All.
You can view the wine's Product page by clicking the link in the Code column.

Wine_Product_Period_Search_Console_-_Selecting_20200616.png

The selected wines are listed in the Cost Allocation Console.

Selecting an Inventory Item for Apportioning

To allocate costs to an inventory item, do the following to select the inventory item:

  1. Click From Search. This button is located at the bottom of the Cost Allocation Console beside the Add Inventory label.

Add_Inventory_From_Search_Button_20200616.png

The Stock Search window displays.

  1. Use the filters at the top of the window to search for the stock item.
  2. Click the items to select, then click Use.

Stock_Search_-_Selecting_20200616.png

The selected items are listed in the Cost Allocation Console.

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