Defining an Allocation

Before you can run a corporate allocation, you must specify the allocation components and then combine these into an allocation processing rule.

Corporate Allocation Setup (CAD) links the allocation source, the allocation target and the allocation ratio to create the allocation sequence. You may combine a number of allocation sequences in an allocation setup.

Note:  The first time you run an allocation you should set the Post Transactions option in the Corporate Allocation Run to No to report on the ledger transactions and check they have been produced correctly.

Steps 1 and 2 are only required to maintain the allocation setup. Once you have defined the allocation you can run it as often as you need to.

There are three steps required to define and initiate a corporate allocation:

  1. Define the two or three allocation components required:
    • Use Corporate Allocation Sources (CAS) to create an allocation source which identifies the transactions to be used as the basis for the allocation.
    • Use Corporate Allocation Targets (CAT) to create an allocation target which identifies the target account, and optional target offset account, to be used by the generated postings.
    • Optionally, use Corporate Allocation Ratios (CAR) to define an allocation ratio which identifies the calculation rules required.
  2. Use Corporate Allocation Setup (CAD) to combine the allocation components into an allocation sequence, within an allocation setup.
  3. Finally, when the allocation is fully defined, use Corporate Allocation Run (CAL) to perform the allocation.