Conditions for the distribution of costs on purchase orders

You can distribute the cost of a purchase order line item among several general ledger accounts. For example, two departments in your organization are purchasing ten items, and you want the cost to be shared by the two departments.

A purchase order line item must meet the following conditions if you want to distribute its costs:

  • The purchase order line item must be a direct issue item or service.
  • None of the items or services for the purchase order were received.
  • The type for the purchase order must be either REL (Release) or STD (Standard).
  • The status of the purchase order must be WAPPR (Waiting for Approval).
  • None of the service lines for the purchase order are prorated.