Creating allocation codes

An allocation code is used to automatically create multiple distributions from a single transaction. Allocation codes can be defined as a percent, amount, or account only. To use the allocation code on another record or to show it in a selection list, the code must be active.

The allocation codes are used in performing these tasks:

  • Amortization of prepaids
  • Creating distributions in detail transaction reconciliation
  • Variance adjustments that are identified during the detail transaction reconciliation
  1. Select Allocation Codes.
  2. Click Create.
  3. Specify this information:
    Cash Allocation Code
    Specify a name for the cash allocation code.
    Description
    Provide a description.
    Allocation Type
    • Account Only

      Select this option if the default is Global Ledger account information without amount.

    • Amount

      Select this option if the default is Global Ledger account information and a specified amount.

    • Percent

      Select this option if the default is Global Ledger account information and a system calculated percentage of the transaction amount.

    Control Total
    If you select Amount in the Allocation Type field, then specify the total amount.
  4. Click Save.
  5. To specify the information and distribution for the Global Ledger account to use in the allocation code, perform these steps:
    1. In the Cash Allocation Code Details section, click Create.
    2. Open the new record.
    3. In the Account Information window, specify the required information.
    4. Click Ok.
    5. If the allocation type is Amount, then specify the value in the Amount column. If the allocation type is Percent, then specify the percentage in the Percent column.
      Note: Repeat the above steps to create another distribution entry. If the allocation type is Percent, then the sum of the distribution percentages must be equal to 100%.
    6. Click Save.
    7. Click Activate.