Allocation group
An allocation group is a set of allocations. You can use allocation groups to perform these tasks:
- Process multiple allocations at the same time. For example, you can select an allocation group to release, calculate, and update all allocations in a group.
- Group allocations that are processed in a specific cycle, such as allocations you run every period versus every quarter.
- Assign calculation steps to allocations in the group so that results from allocations with lower step numbers contribute to the allocation pool for subsequent allocations, allocations with higher step numbers. Allocations with the same step number are processed at the same time.
Allocation steps example
Moose Wood Outfitters defined several allocations to allocate fringe benefit, project management, and overhead costs to its new store construction activities. The final allocation they process calculates capital interest on activity period-to-date costs.
You must determine the allocated fringe benefit and project management costs before the overhead allocation, and you must calculate the overhead allocation before the capital interest charge allocation. They defined an allocation group with steps to perform these allocations in the appropriate sequence:
| Allocation | Step |
|---|---|
| Fringe Benefits | 1 |
| Project Management | 1 |
| Overhead | 2 |
| Capital Interest | 3 |