SAP Materials Management (MM) Module

City of Portland

Multiple Account Assignment and Non-Valuated GR on

requisitions and purchase orders
Multiple account assignment allows you to split a single line of a requisition (and its related purchase order)
across two or more different cost objects. The split can be by percentage or by a designated dollar amount.
Multiple account assignment is also known as split funding.

Uses of multiple account assignment

Use this method when all costs of the purchase will be split among two or more cost objects in an
unchanging ratio. For example:

A purchase to be paid for 40% by one grant and 60% by another

Work whose costs will be split 30%, 30% and 40% among three different WBS elements

An asset costing $10,000 whose value will be assigned $4,562 to one internal order and $5,438 to
another.

Split funding applies to the dollar amount, NOT the quantity, of the purchase order. This means that
if youre purchasing 1 asset that costs $6000, when you post an invoice for a QUANTITY of 1, the
dollar amount of that one item will be distributed to the multiple cost objects designated on the
purchase order.

Limitations and restrictions of multiple account assignment

You cannot issue advances (down payments) against purchase order lines with multiple account
assignment. For advances, you will need to create separate lines for each account assignment.

Its possible to split the costs of a purchase order among cost objects in different bureaus, but:
o

The requisition will be workflowed to the approver(s) for the funds center on the LAST line of the
split

goods receiving will be restricted to the plant on the PO line

When you create a purchase order with multiple account assignment, it will default to the non-valuated
goods receiving state. This means that the PO encumbrance does not become an expense until
invoicing. Non-valuated GR purchase orders become important at fiscal year-end, and must be handled
separately from other year-end goods receiving activities.

All cost objects in the split funding must be in the same account assignment categorythat is, all cost
centers, all WBS elements, or all internal orders.

Instructions for setting up a requisition or purchase order with multiple account assignment
Typically, multiple account assignment is set up on the requisition and carries over automatically to the
purchase order, so the following screenshots are from ME51, Create Purchase Requisition. However, the
procedure is identical in ME21N, Create Purchase Order.

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1. In the Line Item area, set up your item. Here were requisitioning a quantity of one item with a price of
$6,500 EA, in plant MF00, using account assignment K, Cost Center. In this scenario, all costs for the item
will be distributed among the cost centers we identify in the next step.

2. When youve created your line, go to the Account Assignment tab in the item detail area, and click on
Multiple Acct Assignment:

The view changes to Multiple Account Assignment.

3. In Distribution, select either Distrib. on quantity basis or Distribution by percentage

Here, because were requisitioning a quantity of 1 with an order unit of EA, well select the percentage
option (there is no quantity to distribute).
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NOTE: in actual practice, this purchase would be procured as an asset. Were using cost center here for
simplicity.
When you make your selection, you may be detoured back to an error message requiring a cost object.
Just click through it and return to the Account Assignment tab.
4. Enter your cost objects and percentages. Here, we will be splitting the cost 30% each to a Parks cost
center and an OMF cost center, and 40% to a BES cost center: (This is a VERY unlikely scenario in actual
practice.)

The G/L account on is automatically derived from your material group selection, and can be manually
changed here if necessary.
) notice that the Tracking
When you check the requisition (by clicking on the Check document icon:
Number has been auto-populated based on the LAST line of the split. You can change this manually if
necessary.

HOWEVER: The requisition workflow will be derived from the same line. If you want to change the order of
your split lines to control approval workflow, do so before you save the requisition.

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How a split-funded purchase moves through the system

Once youve adopted the requisition into a purchase order, note that on the Delivery tab, the GR Non-Valuated
box has automatically been checked. DO NOT UN-CHECK IT.

A look at budget-to-actuals shows that the PR Encumbrance from the requisition has been relieved, and
moved to the PO Encumbrance column. Note that the 30/30/40 split is reflected here.

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After goods receiving, you will note that the purchase order has automatically been marked Delivery
Complete as usual:

Normally, goods receiving would create the expense, but a return to the budget to actual report shows that no
expense has occurred, and the PO is still encumbering funds:

Only when you enter an invoice does the encumbrance become an expense. Heres how the invoice posts:

(NOTE: If your purchase order has multiple items, or services in USD, and the vendor delivers and invoices
only part of it, the expense of the partial invoice will be split among the cost objects according to the
percentages you originally specified on the purchase order.)
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Now your budget-to-actuals report reflects the expense: the PO encumbrance has been relieved and the
amount has moved into the Actuals column:

Special considerations for Fiscal Year End

At fiscal year end, its important to record expenses that have been incurred right up to June 30. For most
purchase orders, entering a goods receipt will create the expense. In the case of a split-funded purchase order
with non-valuated goods receiving, the expense isnt recorded until invoice entry.
So its important to be aware of any non-valuated GR purchase orders as the fiscal year winds down. Bureaus
may either

Require vendors to submit invoices in prior to June 30 for all goods or services rendered up to June 30
OR

Submit any such anticipated (but uninvoiced) expenses to central accounting for accrual.

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Either way, in April and May, its a good practice to know whether your bureau has any non-valuated GR
purchase orders open. Use Y_DRP_63000031, Purchase Order Listing Report, to find them:

NOTE: The results for this report can seem misleading, especially if the costs of a split-funded PO are
distributed to other business areas. This report goes only to the line item level, and not to the level of splitfunding. So it can only show the total line amount for each part of the split:

Youll have to drill down to the purchase order to see the actual value of each split.

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