--- title: "Methods of Allocating Indirect Costs in \"Accounting for Kazakhstan 3.0\": Reference, Allocation Base, Examples, and Journal Entries" country: KZ lang: en author: Сапа Т.И. (https://buhgpt.kz/authors/sapa-ti) date: 2026-09-07 canonical: https://buhgpt.kz/suraqtar/metody-raspredeleniya-kosvennyh-rashodov-v-buhgalterii-dl-en source: BuhGPT --- # Methods of Allocating Indirect Costs in "Accounting for Kazakhstan 3.0": Reference, Allocation Base, Examples, and Journal Entries > **TL;DR:** Checked on release 3.0.74.2 "Accounting for Kazakhstan" (version 3.0). End of the month. You launch "Month-End Closing" — and it turns red: "Distribution method for indirect costs not specified." Account 8410 "Overhead Costs" has accumulated salaries of workers, depreciation o --- Checked on release 3.0.74.2 "Accounting for Kazakhstan" (version 3.0). End of the month. You launch "Month-End Closing" — and it turns red: "Distribution method for indirect costs not specified." Account 8410 "Overhead Costs" has accumulated salaries of workers, depreciation of machines, electricity for the workshop over the month — but the program cannot allocate this amount to the cost of goods because it does not know in what proportion to divide. Or another case: the closing has occurred, but all 900,000 ₸ of overheads have been allocated to one type of product, even though you have three workshops. In both cases, the reason is the directory "Methods of Distribution of Indirect Costs." Until the necessary entry with the correct base is present, the production cost is collected incorrectly. Let's figure out what this object is, how to fill it out, and how to check the results by entries. 1. Purpose The directory stores rules (bases) by which indirect costs are divided among types of products, departments, and orders during month-end closing. Indirect costs (account 8410 "Overhead Costs") cannot be directly attributed to a specific product — they are distributed proportionally to the chosen base: salaries, materials, production volume, etc. The directory itself does not make any entries: it sets the logic for the regulatory operation. 2. Where to find Three working paths: - Production → Settings and Directories → Methods of Distribution of Indirect Costs. - Main → Settings → Accounting Policy → section with cost distribution — from there the directory is accessed when selecting a base. - Through the register "Methods of Distribution of Indirect Costs of Organizations" (period + organization + cost item + account), where these methods are assigned to a specific cost account. To open the list directly: Main Menu → Functions for Technical Specialist / "Go to Navigation Link" and insert: e1cib/list/Directory.MethodsOfDistributionOfIndirectCosts 2a. How to find out your release Help (the "?" icon in the upper right corner) → About the Program. In the opened window, the top line shows the platform version (for example, 8.3.24.x), below — the configuration release: "Accounting for Kazakhstan, version 3.0 (3.0.74.2)." The instruction is oriented specifically to this release; in older versions, the distribution interface looked different. 3. How to fill out You open the list → Create. There are few fields, but each affects the result. Field Mandatory Purpose and what happens in case of error Name Yes A clear name for the method: "By salaries of main workers," "Proportional to production volume." An empty name cannot be saved. A poor name (method1, method2) — later you won't understand which is assigned where, and you will get "muddled" in the cost. Distribution Base Yes A key field. Determines what to proportionally divide the costs by (see section 5). If you make a mistake with the base — the amount will not go where it should: for example, base "Labor Payment," but the salary for production is not accrued → base = 0 → costs will not be distributed at all. Organization (in the assignment register) As needed The method itself is without an organization, but when assigning to an account, the organization and period — from which month the rule is effective — are specified. If you forget to specify the period — the old base will continue to work. Cost Item / Cost Account (in the register) Yes when assigning It is precisely the link "account 8410 + cost item → method" that includes the distribution. If you do not assign it — the month-end closing will give an error about the method not found. Order of actions in practice: - Create a directory item with a base (for example, "Labor Payment"). - Go to the register Methods of Distribution of Indirect Costs of Organizations, add a line: period 01.01.2026, organization, account 8410, if necessary — specific cost item and department, and select the created method. - When changing the base do not edit the old line retroactively, but add a new line with a new period — this way the history will be preserved. Tip. If there are several accounts and items, assign the method to the account as a whole (without detailing by item) whenever possible — fewer "gaps," due to which costs remain undistributed. 4. An example with entries Given. LLP "Astana-Furniture," January 2026. Over the month, account 8410 "Overhead Costs" has accumulated 900,000 ₸ (salaries of workers, depreciation of the workshop, electricity). Two types of products are produced. The distribution base is "Labor Payment" of main production workers (account 8110): Product Direct Salary (base), ₸ Share Distributed Overheads, ₸ Tables (A) 400,000 0.6667 600,000 Chairs (B) 200,000 0.3333 300,000 Total 600,000 1.0000 900,000 The coefficient for tables = 400,000 / 600,000 = 0.6667 → 900,000 × 0.6667 = 600,000 ₸. For chairs = 900,000 × 0.3333 = 300,000 ₸. Entries of the regulatory operation "Closing of accounts 8" (month-end closing): Debit Credit Amount, ₸ Content 8110 (nomenclature group "Tables") 8410 600,000 Overheads allocated to tables 8110 (nomenclature group "Chairs") 8410 300,000 Overheads allocated to chairs After this, account 8410 is closed to zero, and the full production cost is collected on 8110 and then written off to finished goods (Debit 1320 "Finished Goods" Credit 8110) and upon realization — to cost of sales 7010. What if the base was "Do not distribute"? 900,000 ₸ would remain on 8410, the cost of goods would be understated, and profit would be overstated. This is how costs "disappear" in reporting. 5. Types of Distribution Bases There are no "operation types" like in the document; instead, there is the field Distribution Base. Available values: - Production Volume — proportionally to the quantity of produced goods. - Planned Cost of Production — by planned (normative) cost. - Labor Payment — by direct salaries of production workers. - Material Costs — by the cost of materials written off to production. - Direct Costs — by the sum of all direct costs. - Separate Articles of Direct Costs — by a selected list of articles (flexible setting). - Revenue (income from sales) — by income (account 6010), used less frequently, for specific schemes. - Do not distribute — costs remain on the account and are not divided. 6. What is formed when using Important: the directory itself does not make entries, does not conduct, and does not create electronic documents (ESF, VAT it does not form — this is not a settlement with a counterparty). It works as a setting. Movements appear at the moment of executing the regulatory operation "Closing of accounts 8, 7" in the processing "Month-End Closing": - Accounting entries Debit 8110 (8310) Credit 8410 by nomenclature groups and departments. - Movements in the registers of cost / expenses, from which the calculation is then formed. - The calculation of coefficients is recorded in the month-end closing calculation report. 7. Printed Forms The directory itself does not have printed forms. The result of its work is visible in the printed forms of the month-end closing: - Calculation Report "Distribution of Indirect Costs" — shows the base, coefficients, and amounts for each object. - Calculation Report "Cost of Produced Goods". - Calculation Report "Cost Calculation". They are printed from the document/processing "Month-End Closing" by the button Calculation Reports. 8. Common Errors "Distribution method for account 8410 not specified" (or "...distribution base not defined"). → In the register "Methods of Distribution of Indirect Costs of Organizations," there is no line for the current period. Add a line: period, organization, account 8410, method. Costs have accumulated on 8410 but have not been distributed (there is a remainder). → Base = 0. Classic: base "Labor Payment," but the salary has not been attributed to 8110, but to the administrative account. Check that the cost-base has actually hit the necessary production account, or change the base. All overheads have been allocated to one type of product. → Production/base exists only for one nomenclature group. Check the production documents and that the base (salaries, materials) is distributed across all groups. Changed the base retroactively — "previous periods have gone off." → Edited the existing line in the register instead of adding a new line with a new period. Restore the old line, and set the new base as a separate line with the start date of action. Duplicate methods in the directory. → Two identical "By Salaries" have been created. Keep one, reassign the register to it, mark the extra for deletion. 9. FAQ 1. How does the directory differ from the register "Methods of Distribution of Indirect Costs of Organizations"? The directory contains the methods themselves (name + base). The register — the assignment of the method to a specific link "period + organization + account + item." They work in pairs: without the register, the method "hangs" unused. 2. Which accounts are distributed by this mechanism? Indirect production costs from account 8410 "Overhead Costs" to production accounts 8110 / 8310. Administrative expenses (7210) and sales expenses (7110) are usually not distributed but written off to the financial result. 3. Does the method affect VAT? No. Distribution of indirect costs is an internal calculation of cost. VAT (in the RK the rate is 16%) and ESF are not involved here. 4. Can costs be distributed by several bases at once? For one account/item in the period, one base applies. Different bases are set for different cost items as separate lines in the register. 5. What to choose if there is no production as such, but there are services? Often the base "Labor Payment" or "Direct Costs" fits — what actually reflects the load. If no division is needed — base "Do not distribute" (but then monitor the balance on the account). 6. Why is there a remainder on 8410 after month-end closing? The distribution base turned out to be zero this month (there was no production or base costs). The program has nothing to "lean on." Check the base or set another one. 7. How to see by which coefficient the amounts were divided? In "Month-End Closing" → Calculation Reports → "Distribution of Indirect Costs." There you will find the base, shares, and amounts for each object. 8. Is it necessary to create a method anew each year? The method itself — no, it is indefinite. However, a line in the assignment register is created with the indication of the start period; when changing rules, a new line is added, not the old one edited. 9. What happens if you mark the method for deletion while it is assigned in the register? The program will not allow deletion — there are links. First, reassign the register to another method, then delete. 10. There is one method, but several departments — do overheads divide among them? Yes, the base is calculated by departments and nomenclature groups if production and base costs are reflected in them. 10. Related Documents - Based on what it works: documents of product release, payroll accruals, depreciation on production, write-offs of materials — they form both indirect costs (8410) and the distribution base itself. - Where it is used: register "Methods of Distribution of Indirect Costs of Organizations", Accounting Policy (cost settings), regulatory operation "Closing of accounts 8, 7" in the processing "Month-End Closing". - What is produced at the output: entries Debit 8110 Credit 8410, total cost on 1320, and upon realization — write-off to 7010 "Cost of Sales". How to find out your release Help → About the Program. The top line shows the version of the 1C:Enterprise platform, the next — the configuration release. If you do not have 3.0.74.2, the location of distribution settings may differ slightly, but the logic "method → base → assignment register → month-end closing" remains. The material was prepared for "Accounting for Kazakhstan". --- _BuhGPT — ИИ-помощник для бухгалтеров Казахстана: https://buhgpt.kz_