Service center pools are used to allocate expenses to other indirect pools based on the usage of a service.
For instance, your company may have a publications department that provides design and printing services. The publications department can recover its cost of operations by charging back its expenses to indirect pools based on usage. It is common to see such a department develop a rate per hour or perhaps per page.
To set up a service center pool, select “Yes” to the question, “Is there a service center pool"?”. Enter the short title, long title and optional pool description.
You may create as many as 10 service center pools.
After creating a service center pool, go to the Account Assignment screen to select the general ledger accounts associated with the service center. Then, go to the Service Center Setup screen to set your allocation percentages to various other indirect pools.