Accounts Allocation for General Ledger and Budget

This document explains how to perform the following:

Example

Example of accounts allocation without uplift: Each quarter of a year the company is debited rent for the next three months. The rent should be distributed to five different cost centers for each month in the quarter. The company begins by distributing the rent per period through period accounting in 'Period Accounting. Update' (GLS140). This moves the cost from the balance account to an expense account for rental costs per period using a common cost center. In the next step, the company runs an accounts allocation in 'A/C Allocation. Update' (GLS130). This distributes the cost from the common cost center to each cost center involved.

For temporary or minor allocations, it might be easier to record the cost manually in 'Journal Voucher. Open' (GLS100), with or without using a standard voucher.

Before you start

Follow these steps

  1. Creation of Allocation Proposals

    Both types of allocation are based on an accounts allocation template that defines ranges of accounting IDs from which and to which values are allocated. The same process is used in both the General Ledger and the Budgeting modules, although different programs are used.

    The configuration of the allocation base table and allocation target table, which are connected to the accounts allocation template, determines whether the allocation is done with or without uplift.

    For the general ledger, you create an accounts allocation proposal for a specific range of accounting periods in 'A/C Allocation. Update' (GLS130).

    For budgeting, you select option 15 = Allocations for a budget connected to an accounts allocation template in 'Budget. Open' (BUS100). This starts 'Budget. Allocate' (BUS180/E).

    Note:  'Budget. Create for Next Year' (BUS120) is used to create new budget transactions based on an existing budget. Budget allocations can only be done within the same budget.

    You can choose between making a proposal or immediately updating the general ledger or budget.

  2. Approval of Allocation Proposal

    If the proposal is not correct, adjust the allocation element or the tables included in the element (allocation base table and allocation target template) in the accounts allocation template and then create a new proposal.

    The general ledger and budget can be updated by using various allocation proposals during the same period. For accounts allocation without uplift, only new transactions are included in new proposals. There is no such limitation on transactions in accounts allocation with uplift.

  3. Update of General Ledger

    When the proposal is approved in (GLS130), account entries are created.

  4. Update of Budget

    When (BUS180) is run, the transactions that are created on all levels are totaled and thus the budget is updated.

  5. Deletion of Budget Allocations

    Allocations that are already updated in the budget can be deleted in 'Budget. Delete Allocation' (BUS190). This can be necessary when new transactions are added to a budget or the accounts allocation template is changed. Select option 16 = 'Delete allocation' in 'Budget. Open' (BUS100) to start (BUS190/B) and select the allocations to delete. The original transactions are reset.

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