Using Allocations

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. Before using an allocation template it must be created first, see Allocation Plan Setup.

Accounts Payable Allocations

To Use Allocations with Accounts Payable

1. On the Primary menu, click ORGANIZATION.
2. Select the Org level where your bank accounts are located, for example - Territories.
3. Select the accounting tab.
4. Select the transactions tab
5. Click the accounts payable tab.
6. Click [Add New]. The Entity Search dialog appears.
7. Search for the Entity to pay.

Note: If the entity has an alternate payment address, it can be selected from the Select Address drop-down list.

8. Click OK.

9. Enter the accounts payable information as covered in the accounts payable topic.
10. Click Add Allocation. An allocation plan must have been previously created to activate this link.

• GL Allocation Name - Select the allocation plan from the drop-down list. The Entity where the transaction is created must be part of the allocation plan to be available.
• Description - defaults from allocation plan.
• Type - Select debit or credit for fill in to accounts payable item.
• Amount - defaults from the first AP entry but can be changed. If the amount is changed, additional rows or allocation must be entered to balance.

11. Click the GL Account Number ellipsis.

• Classification - classification availability depends on the allocation plan's Type.
• A Balance Sheet Type will display: Classification Asset, Liability and Equity
• An Income & Expense Type will display: Classification Income, Expense, Under Ops Income and Under Ops Expense
• Group - selection is dependent upon the classification selected.
• Type - selection is dependent upon the classification selected.
• Enter a partial name or GL account number and click Search.

12. Select the general ledger number and click OK.
13. Click OK to close the Add GL Allocation pop-up window.

The allocation in this example divided items evenly across 2 organizational levels. Intra-territory angle creates additional entries to keep the books in balance.

Processing the disbursement for the accounts payable item in this example will:

• Credit bank $3,200.00 (Territory 001)
• Debit accounts payable $3,200.00 (Territory 001)
• No additional entries via disbursement (accounts payable processing) need to occur to Territory 002
• Territory 002 may eventually repay territory 10, crediting the bank and debiting Intra-Office Secondary Offset.
• Territory 001 receipts repayment, debiting undeposited funds and crediting Intra-Office Primary Offset.

Journal Entry Allocations

To Use Allocations with Journal Entries

1. On the Primary menu, click ORGANIZATION. Select the Org level where your bank accounts are located, for example - Territories.
2. Select the accounting tab.
3. Select the transactions tab.
4. Click the journal entry tab.
5. Click [Add New].  

Note: The first General Journal Entry line must be completed with a general ledger number and debit or credit value before Add Allocation can be used.

6. Enter the journal entry information as covered in Journal Entry, and click Add Allocation.

• GL Allocation Name - Select the allocation plan from the drop-down list. The Entity where the transaction is created must be part of the allocation plan to be available.
• Description - defaults from allocation plan.
• Type - Select debit or credit for fill in to accounts payable item.
• Amount - defaults from the first AP entry but can be changed. If the amount is changed, additional rows or allocation must be entered to balance.

• Classification - classification availability depends on the allocation plan's Type.