Defining an allocation

This procedure describes the process for defining allocations in the Project Accounting application. You can select fixed percentages, factors, or a combination of both as the drivers for the allocation. The type of driver you select determines how pool amounts or units will be allocated. Use this procedure to define fixed percentage allocations, fixed factor allocations, dynamic factor allocations, or mixed allocations.

You must define an allocation pool and an allocation header before defining an allocation. See Allocations overview and setup.

Procedure flow: Defining an allocation

Follow these steps to define an allocation:

  1. Access Allocation (AC30.1).
  2. Define the allocation. Use these guidelines to specify the field values:
    Allocation

    Select the name of the allocation you are defining. You name the allocation when defining the allocation header. See Defining an allocation header.

    Pool

    Select the pool (amounts or units to be allocated) you want to assign to the allocation. See Defining an allocation pool.

    Line

    Specify the allocation line number. Each line contains driver information and identifies the activities to which allocation transactions will be posted.

    Post To Activity

    Select the activity and account category to which the allocation will be posted.

    Driver Percent

    To use a fixed percentage driver, specify the percent of the pool you want to allocate to the Post-to Activity. Specify percentages as whole numbers, such as 80.00.

    Post Opt (Posting Option)

    Select one of these posting options to determine the level of detail for the allocation transactions:

    • The Consolidate option creates one allocation transaction for each Post to Activity. The transaction is posted to the post-to activity and account category defined on the allocation line. The Consolidate option defaults, and must be used with General Ledger based pools.

    • The Pool option creates multiple allocation transactions for each Post to Activity. Transactions are created based on the pool's account categories. Transactions are posted to the Post to Activity defined on the allocation line, but the account category is overridden with the original account categories defined for the pool. This option is only used with an activity based pool.

    • The Detail option creates multiple allocation transactions for each Post to Activity. The calculation creates the same detailed transactions as the Pool option, but transactions are posted to the Post to Activity and account category defined on the allocation line.

      Examples are found elsewhere in this user guide. See Account category posting options

    Auto Rvs (Auto Reverse)

    Select Yes to automatically create a reversing entry for the allocation when you create allocation transactions. When you run Allocation Update (AC131), you specify the date you want to assign to the reversing entry. This option is normally used for allocations based on year-to-date or life-to-date data. This overrides the default you defined in the Auto Reverse field on New Allocation (AC30.4).

  3. To define a fixed or dynamic factor as the driver for the post-to activity, click Factor to access Factor (AC30.5).
    1. For a fixed factor, consider this field:
      Fixed

      Specify the value for the factor you want the application to use when calculating the allocation percentage for the post to activity. For example, if you are allocating to the post-to activity based on head count or square footage, specify the number of employees or the number of square feet.

    2. To create a dynamic factor, map the appropriate activity information to the post-to activity line. Use these guidelines to specify the field values:
      Activity

      Select the posting activity that holds the data you want to use for the dynamic factor. For example, to base the factor on period-to-date hours for the design activity, select the DESIGN activity.

      Account Category Selection

      Select Acct Cat Range or One Acct Cat Group as the basis for selecting the account categories that hold the data you want to use for the dynamic factor.

      Acct Cat Range or One Acct Cat Group

      Based on your choice in the Account Category Selection field, select the range of account categories or one account category group that contains the data you want to use for the dynamic factor. For example, to base the factor on period-to-date labor hours for the design activity, select a range or a group of labor-related account categories. The name of this field changes to reflect your choice in the Account Category Selection field.

      Type

      Select whether you want to base the dynamic factor on amounts or units for the specified activity and account categories. For example, to base the factor on period-to-date labor hours, select units.

      Budget

      To base the dynamic factor on actual amounts or units, leave the Budget field blank. To base the dynamic factor on budgeted amounts or units, select a budget number.

      Cumulative Basis

      Select Period-to-Date, Year-to-Date, or Life-to-Date to define the cumulative basis for the data you are using for the dynamic factor.

    Note: On Factor (AC30.5), you can define a fixed factor or a dynamic factor, but not both.
  4. To override allocation header or pool information for the post-to activity in the allocation line, or to define a unit of measure if you are allocating units that will impact Units of Production billing, click More to access Activity Allocation (AC30.6). Use these guidelines to specify the field values:
    Post From Activity, Post From Acct Category, and Post From Account

    You can override offset transaction defaults defined on New Allocation (AC30.4) in these three fields.

    Type

    Select Amount or Units to override the type of data allocated from the pool.

    Unit Of Measure

    If you are allocating units that you intend to bill using the Units of Production billing method in the Billing and Revenue Management application, select a unit of measure. See Defining units of measure (AC/BR).

    Description

    The description in the allocation header is used in transactions created for the post-to activity in the allocation line. Specify a description to override the description defined in the allocation header.

    Post To Account

    The allocation header contains the post to company, accounting unit, account, and subaccount that will be used in the allocation transaction. Select a different company, accounting unit, account, and subaccount if you do not want to use the allocation header's information in the transactions created for the post-to activity in the allocation line.

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