Invoice Allocation Options

Working from a premise that someone has an invoice they want divided across multiple units, we will outline a few scenarios below and steps for achieving a solution. Generally speaking, this is handled through internal transfers (see article).

 

Does this invoice have one line item on it?
(i.e. insurance, rent, advertising, etc)
Yes!

 

Scenario 1: I want these costs split across the units, with the original vendor used and closed to A/P so that each unit can pay their portion to the original vendor.

This is handled simply by indicating this will be what we call a “Split Invoice.”

What Do I Do? Upload the one invoice in only one unit writing “Split Invoice” with markings on it clearly indicating which unit will get which portion of the expense.

How Will It Look in ME? Each unit will have the original copy of the invoice duplicated in that unit but will only have their portion of the total on the invoice. This will be recorded under the invoice vendor and closed to A/P (or the preferred payment account) and available for Bill Pay.

 

Scenario 2: I want these costs simply transferred to the other units as an internal transfer, not to be available to pay through Bill Pay. (i.e each unit will reimburse their portion outside of MarginEdge, or it’s all one bank account)

This will be handled by an Internal Transfer Sheet, one sheet per receiving unit.

What Do I Do?

  1. Upload the original invoice in the unit in which you want to pay it. Do not mark anything on it and it will be processed normally.

  2. Create one Internal Transfer sheet for each unit that is receiving some of the costs. This should show the amount that is being transferred along with the TO (the receiving unit) and FROM location (the unit in which the invoice was uploaded). Repeat this for each unit that needs costs transferred to it.

If this is the first internal transfer, please email it to help@marginedge.com to ensure that you have the correct internal transfer vendors and payment accounts set up.

How Will It Look in ME? The original invoice will look like a normal invoice and flow through Bill Pay. The full expense of that invoice will show in the unit it was uploaded into until the Transfer Sheet is uploaded. The second upload for the internal transfers will shift the expenses to the other units under the designated transfer vendor and go over to accounting as journal entries in each of those units. By default, these transfers will not be eligible to pay through Bill Pay.

 

Scenario 3: I want to pay this invoice in full in the unit I upload it in, but I want the invoice split across the other units so that they can reimburse the unit that paid the vendor for it.

This is not a scenario that is well-supported in MarginEdge. To achieve this it would require the steps in Scenario #2 above, but the Transfer Vendors would need to be set to an A/P account instead of a transfer account. It’s messy, but potentially possible.

 

 

Does this invoice have multiple line items on it?
(i.e. food receipt, commissary order, etc)
Yes!

Scenario 4: This is one invoice that has multiple line items and I want to mark which line items/products go to which unit. This is not something that needs to be paid through Bill Pay.

This will be handled by an Internal Transfer Sheet, one sheet per receiving unit. This can also potentially be handled through our Commissary Feature. This will not work as a Split Invoice.

What Do I Do?

  1. Upload the invoice in one unit.

  2. Create one Internal Transfer sheet for each unit that is receiving some of the costs/products. This should show the amount that is being transferred along with the TO (the receiving unit) and FROM location (the unit in which the invoice was uploaded). Repeat this for each unit that needs costs/products transferred to it.

If this is the first internal transfer, please email it to help@marginedge.com to ensure that you have the correct internal transfer vendors and payment accounts set up.

How Will It Look in ME? The original invoice will look like a normal invoice and flow through Bill Pay. The full expense of that invoice will show in the unit it was uploaded into until the Transfer Sheet is processed. The second upload for the internal transfers will shift the expenses to the other units under the designated transfer vendor and go over to accounting as journal entries in each of those units. By default, these transfers will not be eligible to pay through Bill Pay.

 

Scenario 5: This is a receipt for multiple products that need the costs moved to various units and the total cost needs to be reimbursed to someone, ideally through Bill Pay.

This is not something currently supported in MarginEdge.

The only solution is to submit a reimbursement form with a copy of the invoice showing applicable items for each location.

 

Scenario 6: I just want to transfer category level expenses to the other units.

This is not something that is well-supported in MarginEdge for multiple products at a time. It's possible but you would not get accurate reporting at the product level, which is what drives MarginEdge. Category level transfers are just done for single line item invoices, as indicated above.

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