Introduction to transfers
Cost entries result from posting transactions in the Cost Accounting application area in Business Central. Cost entries are the sources for reports, such as the Cost Acctg. Analysis report, and you can use them in account schedules.
Cost entries can originate from the following four sources:
Automatic transfer of general ledger entries
Manual cost posting for pure cost entries, internal charges, and manual allocations
Automatic allocation postings for actual costs
Transfer of budget entries to the general ledger
Usually, general ledger entries are transferred to cost accounting (CA) with a batch job. However, the transfer can also run automatically after each G/L posting.
When you are transferring G/L entries by batch job, the program uses all general ledger entries that haven't already been transferred. It's only possible to make corrections with a manual correction posting. You can avoid having to make corrections by making the following verifications when preparing the transfer:
Check the Chart of Cost Types. Verify that the G/L Account Range field is filled correctly for all cost types that take entries from the general ledger.
Check the Chart of Accounts. Any entries for income statement accounts that don't have a Cost Type No. won't be transferred.
Verify that all general ledger entries that will be transferred to cost accounting have a cost center code or a cost object code (through the dimensions). Entries without a cost center or cost object are not transferred.
To prepare for the first transfer without transferring all posted G/L entries, in the Starting Date for G/L Transfer field on the Cost Accounting Setup page, select a later date.
Before the transfer, the program automatically checks the relationship between the Chart of Cost Types and the Chart of Accounts so that a G/L account isn't accidentally designated for two cost types.
General ledger entries are transferred if:
The entries have dimension values that correspond to either a cost center or a cost object.
The entries have dimension values that correspond to a cost center and a cost object. For these entries, the cost center takes precedence. This approach helps avoid a situation where a cost type appears in both a cost object and a cost center and is therefore counted twice in the statistics.
The document number in the entries is empty, so it will appear with a document number of 0000 in the cost entries.
The entries are transferred to a cost type that allows for combined entries and these entries are transferred as a combined entry either monthly or daily.
General ledger entries aren't transferred if:
The entries have dimension values that don't correspond to a cost center or a cost object.
The entries have an amount of zero.
The entries have a general ledger account that has been deleted.
The entries have a general ledger account that isn't of the type Income Statement.
The entries have a general ledger account that isn't assigned a cost type.
The entries have a posting date before the Starting Date for G/L Transfer.
The entries have been posted with a closing date. These are usually entries that set back the balance of the income statement at the end of the year.
In cost accounting, you can transfer general ledger entries to a cost type by using a combined posting. You can specify if a cost type receives combined entries in the Combine Entries field in the cost type definition. The different options in the Combine Entries field are:
None - Each general ledger entry is transferred individually to the corresponding cost type.
Day - General ledger entries with the same posting date are transferred as one entry to the corresponding cost type.
Month - All general ledger entries in the same calendar month are transferred as one entry to the corresponding cost type.
Watch this video to see how a transfer can be completed in Business Central.