Allocation Types and Calculations

This topic describes allocation types and calculations.

Percent Allocation

This calculation multiplies each PO or TO line's total material cost by the user-entered allocation percent.

PO line total material cost = 120

PO Header % = .05

PO line Landed cost = 6

PO line unit cost = 6 / PO line qty ordered

Amount Allocation

This calculation distributes the user-entered estimated amount for each landed cost category evenly across all PO or TO lines according to the Allocation Method selected.