Addon allocation methods

There are five methods by which allocation of the addon costs can be distributed to each line item: by amount, unit, cube, weight, or manually. These allocation methods are for on-invoice addons that are entered in Vendor Invoice Center Entry during purchase order costing.

Note: You must enter all the addon amounts that you are going to allocate, then you apply the total amount to a single PO or multiple POs. An addon can be allocated to more than one PO, but an amount of the addon can be applied to a specific PO only one time.

Amount: The amount method distributes the addon amount according to the extension on each of the line items. The extensions of each line are added together, and then each line extension is divided into the total extension to yield the correct percentage. The percentage is multiplied by the addon amount to determine the portion that is prorated to each line item.

Unit: The unit allocation method distributes the addon amount according to the Stock Quantity Received. The quantity of each of the lines is added together and each line quantity is divided into the total quantity to yield the correct percentage. The percentage is multiplied by the addon amount to determine the portion that is prorated to each line item.

Cube: The cube allocation method distributes the addon amount according to the cube, or dimensions, of each of the line items. The number of cube for all lines are added together and then each line’s cube is divided into the total cube to yield the correct percentage. The percentage is multiplied by the addon amount to determine the portion that is prorated to each line item.

Weight: The weight method distributes the addon amount according to the weight on each of the line items. The weight of each of the lines is added together, and then the weight of each line is divided into the total weight to yield the correct percentage. The percentage is multiplied against the addon amount to determine the portion that is prorated to each line item. If you have an addon that is to be distributed by weight, but all lines on the PO do not have a weight, then a manual addon window is displayed so you can manually distribute the addon. If you cancel out of the manual addon window without distributing the addon, or change the addon type back to weight, the addon is expensed.

Manual: You must manually distribute the portion of the addon amount to each line. There may be some lines you do not distribute to at all. To distribute manual addons, select the purchase order and click Select PO Lines for Addon.