What Ledger Transactions are Generated by Corporate Allocations?

When you run corporate allocations, SunSystems carries out the following steps:

1. Using the allocation source details, it selects the appropriate transactions for the source account(s). The transactions chosen depend on the accounting period and analysis code selection criteria.
2. Using the allocation setup details it determines how the source transactions should be consolidated, if at all, and calculates the source amount.
3. If an allocation ratio applies, it calculates the proportion of the source amount to be allocated. This becomes the allocation amount.
4. Using the allocation source and target details, it generates a set of balancing ledger transactions required to post the allocation amount to the appropriate target and offset accounts.

The generated transactions can be:

• spread over a range of periods
• used to adjust a selected budget
• used to update the fixed asset register.

The journal type and journal source of the original source transactions can be retained on the generated postings. Alternatively, another journal type can be used and a new journal source can be generated.

The generated ledger transactions can be posted either at the end of the allocation run, or after each individual sequence. This is an important choice where multi-level allocations are being run.

The ledger transactions are validated and optionally posted by the Ledger Import process. If the generated transactions are all posting to the same business unit, Ledger Import posts them automatically. However, if the generated transactions are posting transactions to another business unit, you can choose to post them either automatically or manually using Ledger Import.