to start adding a line. Allocation Journal Definition Detail appears.Use Allocation Journal Definition to define and maintain information about account group balances that you will reallocate to other account groups. For example, you may receive payments into an account group and have to allocate those payments to various account groups that should recognize certain percentages of those payments. You can set up the source account group and the destination account groups to define when and how much to reallocate to each account group.
Setting Up Allocation Journal Definitions
Open Allocation Journal Definition under Financials | Setup.
In Description, specify a description for the allocation journal definition.
In Type, select which kind of allocation method that you want to use from the dropdown list. The allocation method defines how you want to spread the balance of the Source Account Group to the Destination Account Groups. This is helpful for measuring actual to budget information at month end, quarter end, and year end. Valid options include the following:
Dynamic Percent – Select this option to define the dynamic percent that you want allocated to each destination account group. The dynamic percent is based on the statistical entries made in Budget and Statistical Entry. Statistical data entry is where you specify non-financial in the system to display on the financial statements or to use in calculating allocations. Examples include number of employees, square feet of office space, or any other value that would not be input by using journal entries. You might want to use dynamic allocations in those cases in which you want to allocate an amount to something based on another value. Examples include allocating rent expense based on the number of square feet of office space that is used by a department or marketing costs based on the revenues recognized by a department.
Fixed Percent – Select this option to define the fixed percent that you want to allocate to each destination account group.
In Frequency, select how frequently you want the allocations to occur. Valid options include the following:
Monthly
Quarterly
Last Updated is automatically updated by the system when the definition is changed and saved.
In Session Reference, specify information that you want to record about this Account Journal Definition. This field is not used for processing data.
In Journal Reference, enter a description that identifies which journal will be affected by this definition.
Click to select the Reversing Journal check box if the allocation transaction should create a reversing transaction.
Click to select the Active check box if the Allocation Journal Definition is active. When this check box is selected, the Source Account Group will be allocated to the Destination Account Groups when the transaction is saved.
In Source Account Group, specify the original account group that you want to allocate to other account groups. To specify the Source Account Group, select the account in Acct, the department in De, the territory in T, and the product line in P.
Note: You can also create new account group segments by using the Quick Add feature. For more information, see Quick Add.
In the Destination Account Groups area, specify the destination account group(s) that should receive the allocated amounts from the source account group. To do this, follow these steps:
Click Add Line to start adding a line. Allocation Journal Definition Detail appears.
In Destination Account Group, specify the group to which the source account group transactions should be reallocated. Select the account in Acct, the department in De, the territory in T, and the product line in P.
In Allocation Percent, specify the percentage of the source account group that you want to reallocate to this destination account group.
Click Save and New, or click Save and then click New, to save the current destination account group and start adding the next.
When you are finished creating destination account groups, close Allocation Journal Definition Detail to return to Allocation Journal Definition.
Note: The Account Description defaults based on the Account Group that you specified.
Click Save and New, or click Save and then click New, to save the current allocation journal definition and start adding the next.