You can assign more than one activity to the same auto group code. When a transaction triggers an ABC auto group code to which you have assigned two or more ABC activities, the system displays both activities and prompts you to select the appropriate one for logging the event. To avoid this prompt, use ABC extensions.
For example, return transactions trigger a single auto group code, but you may want to assign more than one ABC activity to that auto group code. Consider the customer who returns a product:
If you sent the customer the wrong product, then you should not penalize the customer for returning the item. Your company would absorb the activity-based cost, because the mistake was yours. You would not want to calculate an ABC cost for this activity.
If the customer changed his or her mind after receiving a product, then you would assign the activity-based cost of the return to the customer.
You can set up one activity code to charge the cost of returns to the customer and another to charge no cost to the customer. Define the extension INT for internal and then assign it to the activity code used when your company is responsible for the mistake.
When you enter a return transaction for which you want the company to absorb the activity-based cost, enter the INT extension in the ABC Order Extension field on the Additional Header Information window. When the transaction triggers the ABC auto group code for returns, the system checks this field for an extension. If it finds an extension, it selects the activity code to which that extension is assigned, rather than prompting you to select an activity code.
Setting up and using extensions involves:
See Also: