Entering and Processing Cost Transfers in Accounts Payable

Accounts Payable cost transfer is the process of retroactively changing the funding source for all or part of an item or cost. You use cost transfers to reverse the expense on the original grant activity and reallocate expense to another grant activity or general ledger account.

Entering and processing cost transfers (distribution adjustments), in Accounts Payable involves several tasks. Use the following illustration and procedure to help you enter and process cost transfer distributions.

Note: Cost transfers can only apply to open activities. If an activity is inactive and needs corrections, you must change the activity status to active, apply the corrections, and then inactivate the activity after the corrections are applied.

To enter and process cost transfers in Accounts Payable

  1. Access Distribution Adjustments (AP30.2).
    Note: Lawson recommends you use comments to track reasons for transfers (reversing incorrect distributions and adding the correct distribution) for reporting and auditing purposes.
  2. Reverse an existing distribution and add the correct distributions to a released invoice. Click the Cmt button to add a comment to distributions.
  3. Identify cost transfer distributions that require approval. You can:

    • Manually monitor distributions on Distribution Approval Listing (AP237).

    • Use Infor Process Automation to automate approval of distribution adjustments. In order for Infor Process Automation to work, the Distribution Adjustments field on Company (AP00.4), Workflow tab must be set to Yes.

  4. Approve cost transfer distributions on Distribution Approvals (AP36.2). Access the form directly, or if you use Infor Process Automation to approve distribution adjustments, your work unit will access the form for you.
  5. Release cost transfer distributions on Distribution Approvals (AP36.2).
  6. Post distribution adjustment records by running Invoice Distribution Closing (AP175).

Rejected Cost Transfers

If one or more line items are rejected on Distribution Adjustments (AP30.2), Infor Process Automation can send a message to the originator of the transaction to announce that adjustments were rejected. At that point, the originator has three options:

  • Update the records; fix the reason for the rejection, and restart the approval process.

  • Delete all the distribution adjustments in the invoice

  • Accept the rejection; invoice distributions return to the original state

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