Automatic Cost Center Filling in the Purchase Invoice Created from a Construction Contract

When you create a Purchase Invoice from Purchase Options in the construction contract, the system fills the cost centers of each line according to the Cost Tracking Level in the contract project, so purchase costs are charged to the correct centers without manual entry. The values are filled for review and are not locked.

When Filling Works

• Enabling Purchase Invoices under Item-Level Cost Center Assignment by Transaction Type in General Accounting Settings (the Cost Center Assignment section).
• Creating the invoice directly from the contract. An invoice converted from a purchase order or created manually is not filled.
• Having a cost center for the project or the item, according to the level, in Cost Centers.

Choosing the Cost Center by Level

Cost Tracking Level	Cost center for each line
Project (used if the field is left empty)	The project cost center for all lines
Tenders	The cost center of the direct parent sub-tender of the work item
Work Item	The cost center of the work item the material belongs to

Distribution Between More Than One Item

• A material used in more than one item is distributed by its value in each item (60 units and 40 units at the same cost = 60% and 40%).
• If the cost is zero in all items, it is distributed by quantities.
• Shared centers are combined in one distribution line.
• Percentages have two decimal places, and the rounding difference goes to the last center so the total is 100%.
• Lines split by unit are each calculated separately.
• A material whose item has no cost center doesn’t get a cost center.

Other Documents

• Distribution over multiple centers is in the purchase invoice only.
• Purchase Order and Purchase Quotation: one cost center field, filled only if the line has one center.
• Purchase requests and quotation requests don’t carry cost centers.

After Saving

• The distribution is used in the purchase invoice journal entry like any manual distribution.
• You can edit or delete any distribution before saving, or by editing the invoice later.

Related Settings

Setting	Effect
Purchase Invoices in Item-Level Cost Center Assignment by Transaction Type	Shows the cost centers column for each item; a condition for filling
Allow Cost Center Distribution to Exceed 100%	Allows editing the percentages to exceed 100% after filling
Cost Tracking Level in the project	Sets which center is used

Practical Example

1. A project whose Cost Tracking Level is Work Item.
2. The material “Cement” is used in the “Foundations” item with a quantity of 60 and in the “Columns” item with a quantity of 40 at the same cost, and each item has a cost center.
3. When creating a purchase invoice from the contract for both items, one cement line appears with a quantity of 100, distributed 60% to the “Foundations” center and 40% to the “Columns” center.
4. If the level were Project, the line would appear 100% on the project center.
5. If cement were used by the bag in one item and by the ton in the other, two lines would appear, each with its own distribution.

Why Aren’t the Centers Filled?

Cause	Solution
Distribution is disabled for purchase invoices	Enable it from General Accounting Settings
The invoice is converted from a purchase order	Choose the centers manually
The project or the item has no cost center	Add a center from Cost Centers
The material isn’t linked to a work item in the contract	Choose the center manually

Permissions

• Add New Purchase Invoice and the Inventory app.
• The permission to view the contract.
• Edit General Settings to enable the distribution setting.

Rounding Example

• A material in three items with the same value: 33.33%, 33.33%, and 33.34% (the difference goes to the last center).
• A zero-cost material in two items with quantities 30 and 70: 30% and 70% by quantities.

Error Messages and Solutions

Message	Cause	Solution
The cost centers column doesn’t appear	Distribution is not enabled for purchase invoices.	Enable it from General Accounting Settings.
A line without a cost center	The item or the project has no cost center.	Choose it manually or add a center for the item.

FAQs

Where do I change the tracking level?

In the project data from Construction Projects, the Cost Tracking Level field.

What is the default value?

The field is optional; if left empty, it is treated as Project.

Are the values locked?

No.

Are they filled in the invoice converted from a purchase order?

No.

Does the distribution of a saved invoice change if I change the level?

No; the level applies to new invoices only.

Does the distribution appear if the line has one center?

Yes; one center at 100%.

Does the distribution differ if the material cost differs between items?

Yes; the distribution is by value, not quantity. A material with a quantity of 50 at a cost of 2,000 in one item and 50 at a cost of 1,000 in another is distributed 66.67% and 33.33%.

Is the cost center also filled in the regular line field?

When the line has one center, the single cost center field is filled as well.