Allocations Part I - Identify Direct Costs First

Allan Larson of Larson Allen facilitated an informative discussion about allocations Tuesday. One suggestion he gave was for those of us grappling with allocations to work in sequential steps, and begin by identifying direct from indirect costs. Code direct costs to the appropriate function instead of coding all administrative costs (direct or indirect) to allocation accounts. Allan pointed out that we'll save ourselves much aggravation if we take time during the invoice coding process to identify admin costs that can be directly coded to a function.