Table of Contents

Splitting Costs into Taxable and Non-taxable

According to the Polish regulations in force, a taxpayer may include only 75% of expenses related to the use of a car as tax deductible costs if it also uses the car for purposes not related to its business, i.e. also for private purposes. As part of [!INCLUDE polish-localization-md], a tool has been added that enables legal and transparent settlement of such expenses.

Cost Allocation Setup

To define the settings for cost allocation rules:

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Allocation Type, and then select a related link.
  2. On the Allocation Types page that opens, select New.
  3. On the Allocation Type Card, fill in the fields as described below:
  • Code - Specify a unique code identifying the desired cost allocation scheme.
  • Description - Specify a description of the cost allocation scheme.
  • Keep Original Line - Specify that the source line of the document with the cost subject to allocation is not to be deleted after the allocation is made. If the field is not selected, the source line will be deleted from the document.
  • Copy Type and No. from Original Line - Select thus field to have the Type and No. values copied from the original line to the created allocation lines.
Note

When the Copy Type and No. from Original Line field is selected and there are defined allocation lines that have values in the Type or No. fields, a message prompting to remove the lines is displayed. Remove the lines to continue.

  • Copy Dimensions from Lines - Specify the lines from which dimension values will be copied to the created allocation lines. Select the appropriate option:

    • Allocation Line - the dimensions set in the allocation will be copied,

    • Original Line - the dimensions from the original line will be copied,

    • Original Line and Allocation Line - both the dimensions set in the original line and the dimensions from the allocation set in the allocation will be copied.

Note

If the same dimension has been set in the original line and the allocation, the dimension from the allocation will be inserted into the lines that were created.

On the Lines FastTab fill in the fields as needed:

  • Type - Select G/L Account or Item Charge.

  • No. - From the drop-down list in this field, select the general ledger account or type of charge that is appropriate for cost accounting.

  • Allocation Type - From the drop-down list in this field, select the value in the purchase document to be broken down as a result of cost allocation.

    • Quantity - New purchase document lines are created by splitting the value in the Quantity field on the original purchase line.
    • Unit Cost - New purchase document lines are created splitting the value in the Direct Unit Cost field in the original purchase line.

  • Description - This is an optional field. You can enter a short description of the line (e.g. the allocation rules defined in the line) here.

  • Share - Specify the value of the cost allocation key based on the quantity share. On this basis, the percentage value in the Percentage field will be calculated.

  • Percentage - Specifies a cost allocation key as a percentage value, calculated on the basis of the values entered in the Share field. This is non-editable field.

Note

The Type and Allocation Line No. fields are not editable when the Copy Type and No. from Original Line field is selected.

For each allocation line, you can assign a set of dimension values to be used in the purchase document lines created. To assign dimension values, on the Lines FastTab, display columns with appropriate dimensions, or select a line and select the Manage action, then select Dimensions. Repeat the action for each line on the Allocation Type Card page.

Maintaining Cost Allocation

Cost allocation mainly concerns costs (expenses) that should be divided into taxable and non-taxable, therefore the functionality is available in the purchase documents, that is, purchase invoice and purchase order.

Note

The description of the cost allocation function in this section refers to a sample purchase invoice. The mechanism is identical for purchase orders, so you should refer to the description of the purchase invoice.

To post costs from a purchase invoice according to the selected cost allocation key:

  1. Choose Lightbulb that opens the Tell Me feature icon, enter Purchase Invoice, and then select a related link.

  2. On the Purchase Invoice page that opens, choose New.

  3. Fill in the header and lines of the new purchase invoice as usual.

  4. From the drop-down list in the Allocation Type field, in the selected invoice lines that contain costs to be allocated, select the allocation key to be used to split the costs in this line.

  5. If the same allocation key is to be used to break down and allocate all the costs in all the lines of the purchase invoice, from the drop-down list in the Allocation Type field in the purchase invoice header, select the allocation key that will be copied to all lines.

    If you change the Allocation Type field on the General FastTab when at least one line exists in the purchase invoice, the application displays a message prompting you to select Yes to apply the change to all lines in this purchase document.

  6. After assigning an allocation type to all the lines required, select Actions on the ribbon, and then in the Functions menu, select the Allocate All Lines action.

As a result of this action, the system creates new purchase invoice lines based on the selected allocation type, including dimensions. The source line that was allocated is kept or deleted, depending on the Keep Original Line setting defined for a selected allocation type.

Continue the purchase invoice verification and posting processes as usual.