Businesses often have expenses that are shared across departments, business units, or expense categories. Reconciling bills with allocated totals can be a total pain for accounting teams, especially when the allocated amounts aren't equal or only apply to a few departments.
Order.co Virtual cards can alleviate that headache by allowing users to automatically allocate transactions across locations, cost centers, or accounting codes! Transactions can even be split across invoice groups for payment from different bank accounts!
Adjusting Allocation Settings
Users can set the allocations when creating a new Virtual Card or editing an existing card. In the Accounting information section of the Virtual Card form, users can choose to allocate by Location, Cost Center, or by codes from one of your Code Categories. For now, allocations can only be set for one of these options, with the rest remaining constant across the allocated transactions. Ex. Allocating across Locations means that only one cost center can be chosen.
Click the Allocate link will open a pop-out menu with a list of the Codes, Cost Centers, or Locations you have access to. Choose which items to include in the allocation settings then click Save to finish your selection!
Once you've made your selections, set the percentage of each transaction to be allocated across your selected items. By default, allocation settings will be equal across each selection. Order.co uses percentages to help account for charged amounts from vendors that don't match the expected total exactly. Don't forget to allocate 100% of the transaction!
If you, need to adjust which items are being used for allocations, click the Manage button to open the pop-out again. Clearing all selections will allow you to choose different selections for allocations, making it easy to switch from Location allocations to Cost Center allocations.
Click Submit or Save Changes when you are finished and begin using your Virtual Card! Remember, editing settings for a Virtual Card will impact any transactions that have not yet been invoiced.
As vendors charge the Virtual Card for this order, transactions will settle and be recorded on the Virtual Card detail page. At the end of your invoicing period (Monthly, Weekly, or Daily) all completed transactions will be invoiced. At that time, all allocation settings will be applied to each transaction as they are invoiced. To see how each transaction has been allocated, click See Allocations on the Virtual Card detail page.
Adjusting settings for a Virtual Card will update any uninvoiced transactions. Invoiced transactions cannot be adjusted retroactively.
Updates to Billing
Each allocated transaction will appear in the Virtual Card section of your invoice. Allocated transactions will appear with the Virtual Card ID number and an Allocation ID. When all fractional transactions appear on the same invoice, there will be one invoice line item for each allocation with the assigned codes, cost centers and locations.