Hi All,

We just migrated Adagio to 9.2 platform. I could not figure out how to process manual proration of misc. charges when processing receipt in PO (9.2A).
On the receipt we have 2 vendors: actual vendor we receive items from and artificial vendor to process estimated landed cost components.
MC defined in MC table: Freight - manual proration, Brokerage - by relative value.

Please recommend me in simple bullet point form how to process this type of receipt.

Any help will be greatly appreciated.
Victor

Hello,

I have an additional update of this problem:
1. Upgraded PO to 9.2B
2. Item vendor currency - $USD, Misc. charges currency - $CAD
3. Misc. charge that require proration by relative value calculated properly. If I add misc. charge that require manual proration I have to edit line item calculate and add manual proration amount to "Allocated misc." field.
4. After pressing "Post" button error message appears: "Manual allocation of miscellaneous charge for 888.77 was allocated to 1155.40. Edit items and update: Allocated misc." ????????

Can anyone explain to me how to process this transaction properly.

Regards
Victor

Hello Victor,

I don't think that there is a "proper" way to process this receipt, which might explain why there has been no feedback. Adagio PurchaseOrders offers several ways to prorate additional costs because different companies have different business needs.

From the numbers in your second post, I would guess that you have a negative receipt quantity in one of the lines, but I might be mistaken.

Since you upgraded from a previous version, I'm also guessing that you have not changed the way you previously posted receipts. In re-writing Adagio PurchaseOrders, we found many calculation irregularities in Receipt Processing and especially additional cost handling in Purchase Orders for Adagio.

Perhaps you should review your receipt processing method with an Adagio Consultant.

Victor:

I think what happens is the manually prorated misc charge amount you are entering is being treated as being in the same currency as the actual item (so in this case USD). You need to manually convert the amounts you are entering to the equivalent USD. Likely you will have to fiddle with eliminating the rounding error.

Doug is right. Manual Proration has not changed in 92B.

If the currency of the Misc Charge Vendor is not the same as the currency for the Item Vendor, the allocation will need to be made in the Item Vendor's currency.

For example: If the Item is in Source Currency CAD and the Misc Charge is in Home currency USD. The amount entered in the 'Allocated Misc.' needs to be in CAD.

I suggest that you add 'Alloc Costs - Home' to the column editor. The 'Alloc Costs - Home' for all of the item allocations must add up to the amount for the Misc Charge.

Hi All,

I'm under impression that no one even tried to check manual proration functionality:

Once again:
You are ordering inventory items from overseas and have to create an order and pay in $USD.

1. Please create simple 3 line purchase order for vendor (currency $USD).
Your item cost include freight to one of the ports in Canada. Your freight company delivered goods to your warehouse and charged your for freight and other import charges in $CAD.

2. Process of items receipt.
Now interesting part: Change to different vendor ($CAD) and add misc. charge, let say, brokerage prorated by relative value. Then for the same vendor add misc. charge freight that should be prorated manually (due to different item/weight cost). Go to each item "Allocated misc" field and try to enter your proration you calculated in advance. Good luck.

Dear Doug and tech support team,
Do the requirement look unreasonable?
Have you done above described steps?
What can you say? Am I doing something wrong? Is software functioning properly?
Do you have the recommendation how to complete above described transaction?

Regards
Victor

Hello Victor,

Your impression is incorrect. We spent many hours in R&D and QA validating the various cost proration methods.

Please provide specific amounts for your example, and how you expect to see the costs allocated to the inventory items and COGS account. Only when we are discussing an actual example can we determine whether the program is functioning correctly.

Victor:

This also might be an issue were behavior depends upon how your database is set up. In any event testing scenarios to see if the issue can be replicated is beyond what most volunteers that monitor this forum would be willing to do. You may want to get your Adagio consultant to assist you.

Hi All,

Please see the attached pictures and let me know how you would process manual proration as per below:
Line# Item# Description Manual Proration Amt.
1 BG129 BASKETBALL NET LEAGUE 20" 274.17
2 BG131 BASKETBALL NET TRI COLOR 20" 437.05
3 BG150 BASKETBALL NET STEEL CHAIN 19" 177.54
TOTAL DOS: 888.76

Regards
Victor

Hello Victor,

Do we have a copy of this database so that we can make sure we are using the same configuration settings?

Have you placed the fields suggested by support on your Grid so you can see what's going on?

Hi Andrew,

Yes to both questions.
Is tech support team can suggest me anything?

Regards
Victor

Hello Victor,

Manual Proration of Misc Charges changed significantly in 81C, the first release of Adagio PurchaseOrders.

In your sample dataset, DOS is the home currency.

If you look at your last print screen, the 1st Misc Charge, Brokerage, is fully allocated. The $91.51 DOS is $70.39 USD
The 1st item shows $20.50 as the Alloc Cost - Home (DOS) . When you edit the first item detail, the Allocated misc. field shows the amount in USD to match the currency of the item vendor. The USD amount is $15.77.

The 2nd items shows 23.09 in DOS and 17.76 in USD. The 3rd item shows $47.92 DOS or $36.86 USD.

Now, to manually allocate the Freight, you need to figure out what the $888.76 is in USD. The currency rate is 1.3 so you have to increase the Allocated cost on the items by $683.66 USD.

To add $274.17 DOS to the 1st item, you need to calculate what the USD amount is. Based on the exchange rate, you need to add $210.90 USD to the $15.77.

Do the same calculation for the other items.

When you are done, the sum of the Alloc Costs – Home total for the 3 Items must equal the sum of the Alloc Costs – Home for the 2 Misc Charges.

Hello,

Do you think this is correct?
Try to do this weird exercise for 150 line order and you'll understand that is impossible to complete in reasonable time frame.

From the other hand, what is the accounting software for?
I think this issue must be corrected as follows:

1. Miscellaneous charges should be processed in selected vendor currency.
2. Separate field for manual proration must be added below the existing "Allocated Misc.".
3. Running total for manually prorated amount should be shown.

Please let me know if you think it is unreasonable or you have any other solution in mind. Because the current workaround you offered won't be in use until this process is corrected.

Regards
Victor

Victor

Why are you doing manual allocation in the first place? Is the error resulting from an auto proration significant enough to justify the cost of your time to do the manual proration?

Hello Victor,

Technical Support has the same question as Doug - why are you doing manual proration over 150 items?

While in PurchaseOrders for Adagio only a few proration methods worked without error, in Adagio PurchaseOrders you can prorate expenses by Relative Weight, Relative Quantity and Equal Line as well as Relative value and manually.

Hi All,

First of all: if manual proration is an option it must function properly.

Our company is in sporting goods business. Lot of items imported from oversees and freight for different type of items is always consolidated. Example of items that could be shipped in the same container: ping pong balls, kattlebells, sport watches, foam rollers, training and conditioning equipment.
This is what we need manual proration for: to allocate freight cost to items correctly.

Regards
Victor

Hello Victor,

Manual proration does function properly, although you may find the method tedious.

The question is whether the automatic proration of freight charges results in any material difference from the amounts you are calculating manually.

MANUAL PRORATION D O E S N O T FUNCTION PROPERLY !!!

If I'm not mistaken we talking about ACCOUNTING software here. All business transactions should be processed properly without catting any corners.
In addition to Freight Custom duties require manual proration as well. Duty rates fluctuate from 0% to 11,5% for different items and calculated on separate XL worksheet. I'm not even mentioning that landed cost components could be a defined as one of the item properties in IC.

At least please fix your tedious manual proration method.

Victor

Hello Victor,

You have already said that you are using a spreadsheet to manually allocate the costs among the lines on your receipt. If you insist on using the manual proration, then add two columns to the spreadsheet to calculate the amount to prorate in the currency of the item vendor and have the spreadsheet tell you the amounts to enter.

ONCE AGAIN:
ANUAL PRORATION D O E S N O T FUNCTION PROPERLY !!!

Please fix your tedious manual proration method.

Victor

Hello Victor,

The process of manual proration has not changed since PurchaseOrders 8.1C shipped in May 2013. Since that time, yours is the first complaint about the process we chose.

We will forward your suggestions to R&D and consider them for the next Upgrade to Adagio PurchaseOrders.

Thanks for your feedback.

Hello,

Thank you. Do you have an estimated time frame when it can be corrected? We desperately need this functionality to be available.

Victor