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Former Member

Other income allocation on the basis of Operating Gross Sales Ratio

Dear Friends,

I am into a Handset Manufacturing industry.My business Assembles and sells Mobile handset.

They are using allocation cycles for expenses, on the basis of the gross sales.

They have certain value added services (VAS) income, routed through Sales order cycle, which is apart from their operating income.

Currently this income is not flowing to COPA , business also wants to allocate this VAS income to COPA on the basis of the Gross Sales. They want to allocate it to the product (FG material) on the basis of gross sales.

Problem is that if I try to book it on a cost center, it will not be real posting and it cannot be allocated.

Is there any route through which I can get it allocated to product on the basis of sales.

Regards,

Sapan

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