Editing purchase requisitions and orders with cost allocation adjustments

As a shopper, you can modify purchase requisitions (PRs) and purchase orders (POs) while maintaining cost allocation across multiple cost centers.

Example use case for editing a purchase with multiple cost centers

In this example, a shopper creates a PR with cost allocation distributed between two cost centers, Customer Success and Engineering. The costs are assigned based on predefined percentages.

Suppose 20% is allocated to Customer Success and 80% to Engineering.

If you purchase 6 quantities of the energy monitoring device priced at $230 each. The total cost amounts to $1380.

The cost for this purchase is allocated as follows:

• Customer Success Cost Center: $276 (20% of $1380)
• Engineering Cost Center: $1104 (80% of $1380)

Now suppose you edit the PR or PO to increase the quantity from 6 to 10 pencils. The total cost amounts to $2300.

In this case, the total cost is proportionally distributed between both the cost centers based on the original allocation:

• Customer Success Cost Center: $460 (20% of $2300)
• Engineering Cost Center: $1840 (80% of $2300)

The cost allocation remains consistent when modifying purchase quantities in a PR or PO.

For more information, see Cost allocations.

Parent Topic:Purchase revision flows

Related topics

Edit a purchase line from a purchase requisition or order

Edit a purchase line from a purchase requisition or order from Employee Center (EC)