The Expense Allocation Schedule feature is developed for streamlining the accounting procedure. The Allocation Schedules will allocate expenses across accounts or segments based on a defined, or fixed, breakout. We need to make sure, that we are allocating 100% of the source amount as the partial allocation is not currently possible.
Scenario:
User wants to split 50/50 expenses booked on a specific expense account from the Source Department to Controlling Department.
1. Navigate to Transactions > Financial > Create Allocation Schedules
2. Fill in all necessary fields in the header of the page
3. Under Source tab set source Account: “1910 Organization Expense”
4. Under Destination tab set the following:
a. Account: “1910 Organization Expense”
b. Department: “Controlling”
c. Weight: 50
Note: To allocate only 50 % to Controlling Department and leave 50 % on the Source Department is not currently possible. We will get the following pop-up message: “The weights do not sum to 100; please adjust the amounts appropriately.”
Solution:
User needs to specify all possible combination of the Departments allocations.
1. Navigate to Transactions > Financial > Create Allocation Schedules
2. Fill in all necessary fields in the header of the page
3. Under Source tab set the following:
a. Account: “1910 Organization Expense”
b. Department: “Accounting”
4. Under Destination tab set the following:
a. Account: “1910 Organization Expense”
b. Department: “Controlling”
c. Weight: 50
d. Click: Add
e. On new line set again Account: “1910 Organization Expense”
f. Department: “Accounting”
g. Weight: 50
h. Click Save
Typically, we cannot selectively assign a portion of the expenses to a different destination; we must always allocate the full amount. In our situation, we must establish an Allocation schedule where we stipulate that 50% of Department A’s funds will be allocated to Department B, while the remaining 50% will stay with Department A. The system employs a simple formula: A multiplied by B equals C, with “A” representing the source pool, “B” as the fixed weight, and “C” as the destination pool, which holds the allocation result.
Partial allocation of Source Amount is currently logged as Enhancement request:
· 296127 – Create Allocation Schedules > ability to source only part of the Expense amounts during allocation
For Alternate solution, Create Memorized Transactions that would allocate the Expense Amounts correctly.