Mass Allocation

Mass Allocation

A single entry formula that allocates revenues and expenses across group of cost centers, departments, divisions, or cost centers.

Steps to create mass allocation journals:

Step1:

                                Define usage factors as the accounts in our chart of accounts.

Navigation:

                                Setup=>financials=>flexfields=>key=> values

1.       Select application as a general ledger.

2.       Select title as an accounting flexfield.

3.       Select our structure.

4.       Select accounts segment

5.       Enter value and description.

Step2:

Define parent and child relationship to segment:

Navigation:

Setup=>financials=>flexfields=>key=> values

1.       Select application as a general ledger.

2.       Select title as a accounting flexfield.

3.       Select our structure.

4.       Select cost center segment.

5.       Enter value and description.

6.       Enable parent check box.

7.       Choose define child ranges.

8.       Select all child values.

9.       Save your work

Step3:

Create cost pool journal and post:

Navigation:

Journals=>enter

Step4:

Create and post statistical journal:

Navigation:

Journals=>enter

Note: currency should be stat currency.

Step5:

Create Mass Allocation Batch:

Navigation:

Journals=>define=>allocation

1.       Enter Mass Allocation Batch name.

2.       Select balance type actual or encumbrance.

3.       Enter description (optional).

4.       Enable security check box (optional).

NOTE: Enable Security checkbox to apply Definition Access Set security to your Mass Allocation formula.

5.       Choose formulas to enter Mass Allocation Batches.

6.       Enter Mass Allocation Formula name and category.

7.       Enter description (optional).

Note: You can choose a ledger currency, or an entered or STAT currency.

8.       Enter formula lines using the formula A*B/C.

9.       Enter target and offset account.

10.   Save your work.

Generate Mass Allocation:

Generate Mass Allocation to validate and create un posted journal batches based on your Mass Allocation formulas. The generated journal batch contains one entry for each allocation formula in the batch.

Navigation:

1.       Enter ledger set.

2.       Enter balancing segment value.

3.       Specify the Allocation Method for the Mass Allocation batches you are generating.

4.       Enter the Batch Name for each validated Mass Allocation formula batch you want to generate.

5.       Enter the Period for which you want to generate Mass Allocation journals

6.       Enter a Journal Effective Date

7.       Choose generate.

8.       Review the journals.

Additional information:

1.       Enable security check box is used to apply definition access set security to your Mass Allocation formulas.

2.        You can choose a ledger currency, or an entered or STAT currency.

3.       Full cost poll allocation to have rounding differences added to the cost pool with the largest relative balance. If you do not choose this option any rounding differences will remain in the original account.

4.       In formula A is the cost pool that will be allocated it can be amount or account balance.

5.       In formula B is the numerator of the factor (a number or statistical account) that multiples the cost pool for the allocation.

6.       In formula C is the denominator of the factor (a number or statistical account) that multiples the cost pool for the allocation.

7.       Parent values can be used in one or more segments. to improve performance keep the number of parents to a minimum.

Looping (L):

Assign this type to a ledger set segment value. The allocation program runs each formula once for each ledger in the ledger set. You can only loop on ledger set segment values.

Assign this type to a parent segment value to include each child value assigned to the parent value in the formula. The allocation program runs each formula once for each corresponding child segment value. You can loop only on parent values.

Summing (S):

Assign this type to a ledger set segment value to sum the account balances of all the ledgers in the ledger set. You can only sum on ledger set segment values.

Assign this type to a parent segment value to sum the account balances of all the child segment values assigned to a parent. For example, if you enter a parent that has five child values, the allocation program adds the account balances of the five child accounts and uses the sum in each Mass Allocation formula. You can sum only on parent values.

Constant (C):

Assign this type to a single ledger segment value. You can only use this segment type for a single ledger for the ledger segment.

Assign this type to a child segment value to use the detail account balance associated with the child. You can use this type with a parent segment value only if there is a summary account associated with the parent.

Note: To use summary accounts in a mass allocation formula, all segments in the formula must be assigned a segment type of Constant.

Target and offset accounts:

These are the lines that are actual journal entry.

Target:

Enter an account in the target line to specify the destination for your allocations. The parent value used in target must be the same parent value used in the B and C lines for the formula.

Offset:

Enter an account in the offset line to specify the account to use for the offsetting debit or credit form your allocation. The offset account is usually the same account as formula line A to reduce the cost pool by the allocated amount.