Cost allocation in Arka can be effectively managed through a production order. To get started, you must have the corresponding cost item created in Arka. Here's how you can create a cost item:
Step 1: Create a Cost Item
1. Navigate to the 'Products' section.
2. Select 'New.'
3. Choose 'Service' as the product type.
4. Provide a name for the cost item, such as 'Import Duty' or 'Labor.'
5. In the 'Purchase Account' field, select the appropriate expense General Ledger account.
6. Click 'Save' to confirm the creation of the cost item.
With the cost item now established in the system, you can proceed to allocate costs by creating a Production Order.
Step 2: Creating Cost Allocation
1. Within the Arka Application, go to the "Cost Allocations" tab.
2. Click on the "New" button to initiate the cost allocation process.
3. Provide all the necessary information, including "Date," "Account," "Service," "Quantity," "Price," "Refno," and any other relevant details.
4. Once all required information is provided, click on "Save" to record the cost allocation.
By following these steps, you can efficiently manage cost allocation in Arka. If you encounter any issues or require further assistance, please feel free to reach out to our dedicated customer support team. We are here to assist you in making your cost allocation processes seamless and efficient.
Then, click on the "Allocate Cost" Button for allocating the cost for the Product.
Then give the desired information like "From Date", and "To Date" then click on the "Search" Button.
Managing Cost Allocation - User Support Guide
Once you've successfully created and added items to your cost allocation, you have various options at your disposal:
1. Cloning a Cost Allocation:
- To duplicate a cost allocation for similar transactions, click on the "Clone" Button.
2. Editing or Deleting a Cost Allocation:
- For any necessary modifications or removals, select the "Edit/Delete" Button.
3. Allocating Cost:
- To allocate costs, click on the "Allocate Cost" Button.
Important Notes:
1. When you allocate a cost to a product, it will impact the inventory value of that product. A new unit cost will be calculated, effective from the creation date of the cost allocation. It's important to note that the cost of the product will not be recalculated for transactions recorded before this cost allocation.
2. Arka will not automatically post any entries into your accounting books for the allocated costs. However, you can utilize the 'Costs Allocated' report available in Arka to track the total cost allocated to different products from various cost items within a specific period (e.g., a month). Subsequently, you can manually post a consolidated journal entry in your accounting books by crediting the General Ledgers of the cost items and debiting the inventory account. This will accurately reflect cost allocations in your financial records.
For further assistance or any questions, please don't hesitate to contact our dedicated customer support team support@arkainventory.com. We're here to help you navigate your cost allocation processes effectively.