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How do I use TAGS to allocate expenses to multiple dimensions? (Analytic Accounting)

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David Taylor

I am trying to figure out how to allocate the same expense to different dimensions - eg. departments and projects. For departments the expense will be allocated on the basis of number of employees in each department; for projects it will be allocated on the basis of time.

I read online that this can be done with tags - but not exactly how to do it.

All suggestions and directions to related resources are welcome.

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Keenmeng Lew
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Hello David,

Would you please share the resources describing this possibility?

Cheers!

km

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Keenmeng Lew
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Thanks!

1 Answer
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Ray Carnes
Best Answer

This is a complex (and probably not realistic) example but will explain the principles and get you started. You need Odoo 10 Enterprise Edition.

Departments A and B.

  • A has 10 employees (40%).

  • B has 25 employees (60%).

Projects: 1, 2 and 3.

  • 1 takes 50% of time.

  • 2 takes 30% of time.

  • 3 takes 20% of time.

Electricity Bill:

  • $5,000.

GL Accounts:

  • Expenses.

Analytic Accounts:

  • Electricity.

Tags:

  • Dept A.

  • Dept B.

  • Prj 1.

  • Prj 2.

  • Prj 3.

In Odoo you can tag an expense with as many tags as you want, but you can't split it - you must do this by creating multiple lines on the Invoice.  Since you want 20%, 30%, 40%, 50% and 60% of the amount allocated, you can split the line into four - 20%, 30%, 20%, 30%.

  • 20% of $5,000 ($1,000) to Department A and Project 1 and Project 3

  • 30% of $5,000 ($1,500) to Department B and Project 1 and Project 2

  • 20% of $5,000 ($1,000) to Department A

  • 30% of $5,000 ($1,500) to Department B

The Invoice lines (use a product or not, as you need to) will look like this:


Then your reports will look like this:


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Fabien Pinckaers (fp)
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I sometimes prefer to allocate to a group tag (e.g. corporate, project AB, ...) and you resplit amount at the end of the month based on your percentages. It's easier than splitting costs at each invoice

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Ray Carnes
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Agreed. This may work better as often the split isn't known until month end (after sales, hours and pieces for the month are known)