Allocation Plan Setup

Organizations with multiple branches, departments and possible units may have a policy of dividing expenses during the course of an accounting transaction based on the organizational structure. Creating a general ledger allocation plan provides a template for easily dividing expenses within the organization. Allocation plans can be created for accounts payable and journal entries.

To Create an Allocation Plan

1. On the Primary menu, click ORGANIZATION.
2. Click the territories tab.

3. Select the territory to add the plan to by clicking its Details icon.
4. Click the accounting tab.
5. Select the general ledger tab.
6. Select the gl allocation tab. Any previously created allocation plans will be displayed on this screen.

Note: The territory level is used in this example, but allocations can also be setup at the organization level. When created at the territory level, general ledger defaults will be based on that territory. Depending on user security to other territories, defaults may be overwritten.

7. Click the [Add New] link.

• Name: Enter a name for the allocation plan. Enter a name that can be easily recognized from a list of other possible allocation plans.
• Allocation Type: Select Balance Sheet or Income & Expense. Balance Sheet will restrict selection of organizational entities to Region and force a Territory. Income & Expense will permit all organizational entities as well as both income and expense accounts when allocation is used.
• Description: Add a description of the plan (optional).
• Active: This is selected by default. To create a plan to be used at a later time or to deactivate a current plan, clear this checkbox.  

8. Click OK. The GL Plan screen appears:

• Intra-Office: Selected by default if the allocation uses multiple territories requiring intra-office transactions.
• GL Allocation Summary:Click to return to the GL Allocation list screen. Any line items added will be saved, but allocation factors will not be saved unless Save or Allocate has been clicked.
• Copy Allocation: Creates a new allocation screen displaying "copy of" in front of the original plan description.
• Allocate: Takes any allocation factor entered and creates appropriate percent values.
• Save: Saves the allocation information without closing the screen.

9. Click the [Add New] link.

• Region: Defaults based on territory but can be changed depending upon security to other entities.
• Territory: Available based on Region – defaulted based on entry level but can be changed
• Branch: Available based on previous territory selection.
• Department: Available if branch selected.
• Unit: Available if applicable for department.
• Allocation Factor: enter a percentage amount (numerical).

10. Click OK.

Note:  After a line item has been added, Allocation Type cannot be edited. At this point, the Income and Expense has been designated as the selection which permits pulling all entities but will not be available for balance sheet accounts.  To switch the allocation type, you must delete all org line items.

The plan name and description as entered and can be edited by clicking the Details icon.

Note: In this example, the Intra-office checkbox is unchecked. Adding a different territory to the allocation will automatically place a check in the box. You cannot check or uncheck the checkbox. Deleting the different territory in an allocation group will uncheck the checkbox.

Click Add New to continue adding desired groups

• Note there can be a single line item = to 100%.
• Click Save, Allocate or OK. Line items will be split per Allocation Factor percent to equal 100%.
• Clicking Cancel or GL Allocation Summary will return to the GL Allocation Summary list, saving changes as of the last “Save” or “Allocate”.
• Clicking the Remove icon deletes the item selected.
• Note that if an allocation plan has been used, its use is held in the existing posted transaction.

Intra-Office transaction capability

With GL allocation permitting selection of multiple book levels (territories), subsequent use in accounts payable and journal entries permits intra-office transactions.

Allocation is complete.

Copying an Allocation Plan

1. On the Primary menu, click ORGANIZATION.
2. Click the territories tab, select territory by clicking the Details icon.
3. Click the accounting tab, then select the general ledger tab.
4. Click the gl allocation tab and click the Details icon on the desired plan to copy.
5. Click Copy Allocation
6. Click OK and system returns to the original GL Allocation Plan details.
7. Click GL Allocation Summary.

• The Plan is an exact copy of original with the following exceptions:
• Active Status is unchecked
• Date Created is the date copy was created

8. Click the Details icon to edit as needed. Select the Active checkbox to activate the plan when complete.