Understanding pseudo accounts

In the cost accounting process, you can apply dollars incurred by one department to other departments using the Reclasses, Overhead Allocations, or Adjustment processes. For example, applying costs for inpatient transportation, building maintenance, or marketing to a clinical department.

To reflect these transactions, Axiom Cost Accounting creates pseudo accounts within departments to offset costs in source departments and write costs to receiving departments. These accounts are created and stored within Axiom Cost Accounting. For example, when applying inpatient transportation costs to a clinical department, a pseudo off-set is created in the Transportation department with a negative balance, and a correlating pseudo account is created in the Clinical department reflecting the allocated dollars.