Move expenses from one department to another department or from one area of the financial statements to another such as OpEx to COGS

When forecasting you may want to from time to time allocated certain expenses to a different area of the financial statements.  In this example we will assume that a portion of the company's facility is used for customer logistics of the Camera product.

As a result of this we need to allocate a portion of the rent to COGS for the shipping activity. 

In order to do this you will need to go to Plans->Drivers and scroll to the Allocations group near the bottom.

Warning: Allocations are not permitted between a Revenue account and an Expense account

Step 1:

Create a driver and name the driver COGS: Shipping

Step 2:

Set the account that you would like the amount we calculate to allocate into within the "Allocation In" column as well as the account that the offsetting amount will allocate out of within the "Allocation Out" column.

In this example we are moving expenses from the Income Statement Building Rent account into the COGS Cost of Revenue account.

Step 3:

Next we need to determine the amount to allocate by pointing the Driver at an account or any other line within the Jirav model from with the Universal Addressability picker as noted in the screen shot below.  

For this example we are pointing the driver at the Building Rent account from within OpEx on the Income Statement. 

We then need to determine the ratio to apply to the amount we have pointed the driver at; in this example we are taking 30% of the rent expense for the amount to allocate.

Step 4:

Review the results of the allocation by going to the Plans->COGS and Plans->OpEx

As you can see in the screen shots below, Jirav is now allocating $4,500 (30% of $15,000) to the Cost of Revenues account