In-house maintenance expense allocation
Step-by-step mechanics for spreading pooled in-house maintenance cost (GL 80500) from regional and corporate locations out to individual stores.
In-house maintenance labor and related costs post to account 80500 (In-House Maintenance Expense), coded primarily at the regional level rather than to individual stores. This entry reallocates that regional/corporate cost out to the individual store level.
Source: Rackson_RRS_RCY_Review_Process.docx section 44. In Intacct's journal transaction list this appears under the description "Reclass Ops Maintenance payroll costs."
The method changed recently
| Period | Method |
|---|---|
| Prior method (most of the year) | Allocated regional subtotals down to the stores within that specific region. |
| Current method (as of two periods before the review) | All in-house maintenance is allocated evenly across all stores, rather than being kept region-specific. |
The client made this decision to simplify the process, and it materially simplifies the work going forward. Confirm this is still the standing decision before reverting to the old region-by-region method.
Step-by-step
Run the Dimension Balance Report immediately after AMEX expenses and payroll have posted for the period. This is the trigger, since in-house maintenance costs largely flow in through AMEX charges and payroll-related labor postings.
Pull account 80500 on the Dimension Balance Report.
You should see costs sitting at the regional/corporate location level (location IDs in the 9102x / 999 family) with little to no cost sitting directly at individual store level — that's expected and correct going in.
Download the report and save the regional/corporate-level totals — these are the balances you're about to key into the allocation.
Only key in the corporate and regional-level locations for allocation. Do not manually key individual stores that already have a direct-expense amount sitting there — those get left alone. Only the pooled corporate/regional balances get spread.
Use the appropriate allocation group for the entity. The location group reference lists the relevant groups — "BK Stores and Corp" (all BK open stores and corp), the RCY-side equivalents, plus several older/legacy groupings.
Legacy groupings such as "Odyssey" and "FLAME Stores" are tied to prior acquisitions and are generally no longer the ones to use. Use the currently active group for the concept in question — don't assume an older grouping name is still correct.
After the allocation posts, rerun the Dimension Balance Report on account 80500. Corporate/regional locations should now be at (or near) zero, with the cost spread across individual stores.
Rerun the Dimension Balance Report once more toward the end of the close, after Caitlin's GL adjustments have posted — these sometimes land later in the week and can add new balances to the pooled accounts.
Confirm via the side-by-side report, where the in-house maintenance line should show cleanly at store level with nothing left sitting at the regional/corporate rollup.
Per the close checklist, In-House Maintenance is a WD5 task.
Watch-outs
Her adjustments can land after this allocation has already run, re-populating a balance in the pooled account.
Anyone booking an entry to the corporate/regional accounts after the allocation has run should search for and flag this — or simply plan to rerun the allocation report a second time before final close.
The team discussed pushing this step later in the close calendar because they had gotten a little aggressive running it too early relative to when Caitlin's adjustments land. Confirm the current target day in the close calendar rather than assuming Tuesday morning is still the target.
This account only occasionally receives a direct store-level expense from an invoice. The vast majority of the balance is labor and AMEX-driven and lands at the pooled level.
Related
- Closed store reclass — the other reclass with the same late-adjustment timing risk
- RRS delivery, maintenance and reporting workpapers — the 80500 preparer steps and its predecessors
- RCY payroll and maintenance workpapers — the RCY side, posted to a single admin location
- Intacct reporting infrastructure — the location groups used for allocation