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 are 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.

This diagram shows how to define an allocation:

Access Allocation (AC30.1).
Define the allocation. Specify this information:
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 allocated 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 are posted.

Post To Activity

Select the activity and account category to which the allocation is posted.

Driver Percent

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

Post Opt
Select one of these posting options to determine the level of detail for the allocation transactions:
- C - Consolidate: Create 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 C - Consolidate option is the default and you must use it with General Ledger based pools.
- P - Pool: Create 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.
- D - Detail: Create multiple allocation transactions for each Post to Activity. The calculation creates the same detailed transactions as the D - Detail option, but transactions are posted to the Post to Activity and account category defined on the allocation line.
  See Account category posting options.
Auto Rvs

Select Y - 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 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 Rvs field on New Allocation (AC30.4).
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 that you 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. Specify this information:
  
  Activity
  
  Select the posting activity that holds the data 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 1 - Acct Cat Range or 2 - One Acct Cat Group as the basis for selecting the account categories that hold the data 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 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 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 U- 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 P - Period-to-Date, Y - Year-to-Date, or L - 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.
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 affects Units of Production billing, click More to access Activity Allocation (AC30.6). Specify this information:

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 fields.

Type

Select A - Amountor U - 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. Provide 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 is used in the allocation transaction. Select a different company, accounting unit, account, and subaccount if you do not use the allocation header's information in the transactions created for the post-to activity in the allocation line.