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Tom has come to a decision on what to do with the ubiquitous accrual value. 60% of this value should be credited to Greg's Transport expense on a monthly basis. Tom, in turn, will cover Ed on this portion of the expense. For example: Accrual Value comes out to be $300,000 for the month of April. This means that: Greg's portion of this value is 60% of $300,000 = $180,000 Tom's portion of this value is 40% of $300,000 = $120,000 Greg's Transport Expense is ($700,000) So, Tom will cover $180,000 of this expense Greg's adjusted Expense is ($520,000) Greg's P&L is net better off by the $180,000 of accrual value Tom's P&L is net better off by $120,000 of accrual value which had not been previously recognized. Ed's P&L is net unchanged from all of the above. Call with questions. Eric x3-0977

Subject Line:
FINAL DECISION ON ACCRUAL VALUE