Expenses may be shared across departments/subsidiaries. For example, office space may be used by multiple legal entities where one entity receives the vendor bill and makes the payment, but the expenses for rent and utilities need to be allocated across the entities using that office space. This SuiteSolution allows customers to set up distribution schedules for common expenses. The distribution schedules define the allocation % for each legal entity.
The allocation % or amount can be over-written for an expense or item line on the vendor bill. Specific lines can also be excluded from distribution. When the vendor bill is approved, regular journal entries are created for inter-departmental distributions or intercompany journal entries are created for distribution across subsidiaries. The journal entries are also reversed and new journal entries created when lines are updated or deleted on the vendor bill.