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 Polish Localization, 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:
- Choose icon, enter Allocation Type, and then select a related link.
- On the Allocation Type page, select New.
- 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.
On the Lines FastTab fill in the fields as needed:
Type - Specify the type, by selecting G/L Account, Resource or Item Charge.
No. - Specify the G/L account, resource card or item charge type to be used for cost accounting.
Allocation Type - Specify the value in the purchase document to be split as a result of the cost allocation. You can select the following values:
- Quantity - New purchase document lines are created by dividing the value in the Quantity field on the original purchase line.
- Unit Cost - New purchase document lines are created by dividing the value in the Direct Unit Cost field on 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 - Specify 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.
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:
Choose , enter Purchase Invoice, and then select a related link.
On the ![Purchase Invoices page, select on the action bar.
Fill in the header and lines of the new purchase invoice as usual.
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.
If the same allocation key is to be used to split 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 a least one document line exists, and a value is changed in the Allocation Type field on the General FastTab, a message is displayed. Select Yes in the message box to apply the change to all purchase document lines.
After assigning an allocation type to all the lines required, select Actions on the action bar, 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 according to the standard procedure.