Setting up Allocation Targets

An allocation target identifies the target account to be updated by an allocation. The allocation transaction generated by an allocation run posts to this target account. You can also identify the business unit and ledger for the target account. For example, you may wish to allocate costs across business units, or generate budget transactions.

For a charge type allocation, the allocation target also identifies the target offset account. This is the account to which the balancing reversal transactions are posted. If the target account is in a different business unit to the source account, the target offset account transactions are required to keep the target business unit in balance.

You can choose to consolidate the target and target offset posting transactions, to reduce the number of postings generated.