Setting up a Cost Allocation System
Costs are normally pictured as a 2-dimensional structure, as shown on a spreadsheet. Typically, each row represents a discrete cost item (line item or task), while each column represents discrete cost elements, such as labor hours or materials purchases.
Mandrel provides a capability to extend this into a 3-dimensional structure by sub-dividing each cost element into several discrete blocks. This process is called cost allocation.
Allocation blocks could represent a time series, e.g. Year 1, Year 2, etc., or they could represent various organizations who will undertake different parts of the work. There are no constraints on how you interpret cost allocation. The instructions below provide for both a calendar-based allocation system and a generic system. Choose whichever is relevant to your needs.
Setting up a Calendar-Based Cost Allocation System
1. Use menu call Setup Menu/Cost Allocation to display the Cost Allocation form, then select Allocate costs by time period.
2. Select the time period type you wish to use (weeks, months, calendar quarters, fiscal quarters, calendar years or fiscal years).
3. Select the start date of your time sequence using the up/down buttons in the Start Date box.
4. Select either the end date or the number of time periods by using the up/down buttons in the End Date box.
5. Click on OK when complete.
Setting up a Non-Calendar Cost Allocation System
1. Use menu call Setup Menu/Cost Allocation to display the Cost Allocation form, then select User-defined cost allocation.
2. Click the Add button to add a new allocation block, then type its name.
3. Click on OK when complete.