Splitting Account Codes on a PR/PO

Owned by Nehal Gupta
Last updated: Sept 26, 2024 by Jeremiah Macht
6 min read

This user-guide will explain how and when to split line items on a requisition or a PO. The first half will show the different ways to split the costs on a requisition or a PO, along with the pros and cons of each. The second half will explain how to do it. This procedure can be used on Requisitions and POs that come from a catalog supplier, a non-catalog form, or a Disbursement Voucher form.

Note: You cannot split a zero dollar line. If you are reserving a line for a future year purchase by setting the line to $0.00, you will need to have only one account code on that line.

Table of Contents

The following examples show a Blanket Order being split three different ways in the draft requisition. The choice about which method to use when splitting the cost between two or more accounts may depend on how the invoice will come in. If you know the percentages of the splits, splitting in the header is the most common way to do it.

The accounting code lines on the header are associated with each line item ordered unless you override the codes at the line level.

Splitting the order in the Header

Screenshot 2024-06-07 at 1.12.42 PM.png

  • Splitting accounts in the header can only be done by percentage.

  • Every invoice that comes in will be split between these 3 accounts at these percentages, regardless of the number of line items.

Splitting the Order in the Line Item by Price

Screenshot 2024-06-07 at 1.15.31 PM.png

  • Splitting the line items by price should only be done if you know the invoice will be paid in full. AP personnel will not know how to apply the payment if it is for less than the full amount. (See the Example below.)

  • Splits in the line item will override any splits that are in the Header.

Example

In this example where the line item is split by price, and an invoice comes in for less than the full amount, $4,000 for example, AP will not know where to apply it. For this reason, their default strategy is to apply it to the top line first. That will leave $2,000 remaining on the top line. If another $4,000 invoice comes in, $2,000 of it will be applied to the top line and the rest to the second line. This will continue on until all of the accounts are paid off.

In order to avoid this behavior, it is best practice to always split by % of Price, unless you know with absolute certainty that the invoice will always come in for the full amount.

Even though we are describing changes to a Purchase Requisition here, splits can be made to either the Requisition or the Purchase Order following these procedures. It is the exact same pop-up window that is used for both. However, once an invoice has been processed on the order, no more changes can be made for splitting accounts.

Splitting the Order in the Line Item by Percentage

  • Splitting the line items by percentage on the line item will override any splits that are in the Header.

  • Each invoice that comes in for less than the full amount will be split according to the percentages that are set in the line items.

Process Steps

Splitting Accounts in the Header

  1. In the requisition, or the PO, you can either scroll down to the Accounting codes section or click on the Filter View eye icon to display the accounting codes only or view line items only. Click on the Pencil Edit button in the header section. Accounting Codes section will allow you to make changes at the Header level which affects all lines on your requisition. The Accounting Codes section allows you do split your lines by only percent of price.

  1. In the resulting Edit Accounting Codes popup screen, click on the add split icon right of the screen.

  1. Every time you click on the add split plus icon, another accounting line is added. (You may need to hover you mouse for the icon to appear.) Add the account codes and the percentages you want to use. Notice that the % of Price drop-down in the top right corner. This is the only choice you have in the header. Notice also that if you have your account codes setup in your profile preferences, you can select from that shorter list by clicking on the link within your Code Default Profile Values OR Code Favorites.

  1. When done, click on the validate values check mark icon to confirm the values. Click Save to complete. After completing you may see a message in the status sidebar such as this example. Make sure you have unique account strings in your split accounts.

  1. You will be returned to the requisition or PO to continue.

Splitting Accounts in the Line Item

  1. The Line Items section will allow you to make code changes that only affect the line you are updating. In the requisition or PO, select the 3 Dot Menu button and click Codes on the line level.

  1. This procedure is identical to splitting the accounts in the header, with one exception: The line item section allows you to split your lines by both percent of price and amount of price. Remember the caveats of splitting by price.

    1. Splitting the line items by price should only be done if you know the invoice will be paid in full.

    2. AP personnel will not know how to apply the payment if it is for less than the full amount.

  1. When done, click on the validate values check mark icon to confirm the values. Click Save to complete. After completing you may see a message in the status sidebar such as this example. Make sure you have unique account strings in your split accounts.

  1. You will be returned to the requisition or PO to continue. Notice the Values vary by line and Values have been overridden messages. If changes need to be made, edit the codes to bring up the pop-up window again and repeat this process.

  1. Here we edited the lines and changed it from the Amount of Price to a % of Price.

Related Articles