What Types of Allocation are Available?

Charge Type Allocation

A charge type allocation selects the transactions to be allocated on the allocation source accounts, calculates the amount to be allocated, and posts the resulting allocation transactions to selected target account, without affecting the original source account.

A charge type allocation might be used where you want to base the allocation on a source amount, perhaps using a predefined ratio, but do not wish to alter the source account balance. The generated transactions are posted to a target account, and the reversing entries are posted to a target offset account.

Another example of where a charge type allocation may be used is to create budgets. The budgets may be based on the original source balances, but should not affect the sources in any way.

Therefore, charge type allocations update the target account and target offset account identified in the allocation target. See Setting Up Allocation Targets.

Split Type Allocation

A split type allocation selects the transactions to be allocated on the allocation source accounts, calculates the amount to be allocated, and posts the resulting allocation transactions to selected target account. It also reverses the transactions selected in the allocation source, thus adjusting the allocation source accounts. This type of allocation might be used to allocate costs across business units, or to reapportion a total cost across analysis codes on the same account.

For a split type allocation, the allocation calculations are still based on the allocation source, perhaps using a predefined percentage, and the allocation transactions are posted to the target account identified in the allocation target. However, a target offset account is not used and it is left blank in the allocation target. Instead, the reversing transactions are posted back to the original allocation source accounts.