Using Fixed Allocations to Allocate Costs and Revenues

This topic explains how to allocate costs and revenues using fixed values. Allocation Examples are also available to help you understand how to create a fixed allocation. See Using Statistical Allocations to Allocate Costs and Revenues for information on allocating using statistical values, or Using Proportional Allocations to Allocate Costs and Revenues for information on allocating using proportional values.

Fixed allocations use set percentages or amounts as the basis for the allocation. These set values can be saved as an allocation rule Stores distribution criteria for reuse and helps speed up the process of splitting costs and revenue from selected GLAs and dimensions, and allocating them to other GLAs and dimensions. Fixed allocation rules use set percentages or amounts as the basis for an allocation. Statistical allocation rules use sets of values that may vary as the basis for an allocation., ready for use at the distribution stage of the process. See Managing Allocation Rules.

Alternatively, you can enter the fixed allocation details when you reach the distribution stage of the allocation process, instead of using an allocation rule.

There is a clickable progress bar at the top of each page. This bar enables you to navigate within the allocation process by clicking on a point on the bar. It also illustrates what steps are complete and what still needs to be done: the icon indicates a completed step and the icon indicates an incomplete step. You cannot use the progress bar to jump forward in the allocation process, unless you have already completed some of the details on that page.

A collapsible progress side panel is also available and summarizes the current status of the allocation. To show or hide the side panel, click the arrow.

Tip:

We recommend that you maximize the Allocation pages, as this makes it easier to see the details in the Preview pane.

Using Allocations with Multiple Companies

If you want to allocate costs and revenues from multiple companies, check the following before starting the allocation:

• Your org is in multi-company mode and that all the appropriate companies are selected as current companies.
• All companies share the same dual currency. This is because the app cannot retrieve transactions lines in different currencies and convert them to a single document currency. The dual currency is used as the document currency when creating the allocation transactions.
• You are not using local GLAs A general ledger account that is used in local statutory reporting. You can only use local GLAs in allocations if you are in single-company mode. (you cannot use local GLAs in multi-company mode, even if this functionality appears to be selected). See What is a Chart of Accounts Structure? for more information on local GLAs.

Note:

You can retrieve data from multiple companies but you can only post to one company.

Retrieving the Source Data

The Retrieve Source page enables you to specify the source data for your allocation:

1. Check that you have the required company or companies selected.
2. Click the Allocations tab.
3. Click New on the Allocations home page or click New Allocation from the list view.
4. [Single-company mode only] On the Retrieve Source page, select a time period and its associated values. For example, if you select "Soft Date", you must select the relevant soft date value, such as "Last N Months". If you select "Current Period", only transactions up to the current date are selected.
   Note:

   We recommend that you select transactions A record created when documents are posted to the general ledger. Transactions must balance (sum to zero) in home, dual, and document currency. by period, not by date range, so that the data aligns with your accounting period.

5. [Multi-company mode only] If required, select Only Retrieve Intercompany Transactions on the Retrieve Source page. In the Filter Groups section, select a company and period details for this filter group.
6. [Optional] Select the account In this context, accounts are organizations or people that you conduct business with, such as customers or vendors. Account is a standard Salesforce object. FinancialForce accounts can be any Account Record Type. you want to retrieve data from.
   Note:

   If you have encryption enabled in your org, you must be as specific as possible when typing the account name to ensure that the account is found. See Shield Platform Encryption for more information.

7. [Optional] Add more accounts in the same way. To select all the accounts in a range, click and select "From-To". To select multiple accounts, click and select "Multi-select".
8. [Optional] Select a general ledger account The general ledger will normally include general ledger accounts (GLAs) for items such as income, expenses, assets, liabilities, and reserves. or local GLA A general ledger account that is used in local statutory reporting. You can only use local GLAs in allocations if you are in single-company mode. from the list.
   
9. [Optional] Add more GLAs or local GLAs in the same way. To select all the GLAs or local GLAs in a range, click and select "From-To". To select multiple GLAs or local GLAs, click and select "Multi-select".
10. Select up to four analysis dimensions Custom objects that allow you to analyze the activity in your business in additional ways, such as by cost center, project, employee, or any other business entity important to you.. You can select from a list or type a name to search. Your administrator may have hidden unused dimensions.
11. [Optional] Click Add Filter Group to add another set of filters.
12. [Optional] When you have provided or exceeded the minimum retrieval criteria, click Preview to retrieve and view a summary of the source data. You must have entered at least one time period and either a GLA or one or more dimensions.
13. [Optional] On the summary list, you can expand each entry to view the individual transaction line items. You can use standard sort and search features to navigate around.
14. [Optional] Click Show More if there are more transaction line items to view.
15. Click Next to continue.
    

Setting the Allocation Method

The Allocation Method page enables you to specify the type of allocation you want to perform:

1. For Allocate To select "Single Company" or "Cross-Company".
2. For Method of Allocation select "Fixed". This means that you are going to use set percentages or amounts as the basis of your allocation.
3. Click Next to continue.

Entering the Distribution Details

The Distribution page enables you to specify where you want to allocate the source data to and the corresponding percentages or values:

1. Do one of the following:
• If you have already created a fixed allocation rule Stores distribution criteria for reuse and helps speed up the process of splitting costs and revenue from selected GLAs and dimensions, and allocating them to other GLAs and dimensions. Fixed allocation rules use set percentages or amounts as the basis for an allocation. Statistical allocation rules use sets of values that may vary as the basis for an allocation. that contains the distribution criteria you want to use, select it from the Allocation Rule picklist.
  Notes:

  • If local GLAs are enabled in your org, only active allocation rules that have been set up to use local GLAs are available.
  • For cross-company allocations, in the Allocation Rule drop-down you will only see rules with a company specified in the Company column.

• If you do not already have an allocation rule set up, select any GLAs, local GLAs or dimensions you want to allocate to from the grid and enter a corresponding percentage or amount for each one. Click next to the Allocation Rule field to save as a new allocation rule, if required.
  Note:

  For cross-company allocations you must complete the Company column in the grid.

• If you want to use the details saved in an existing allocation rule as the basis for your distribution criteria, select it from the Allocation Rule picklist and make changes as required. You can then click to update the original rule or change the rule name to save the changes as a new rule. Alternatively, you can use the distribution criteria you have entered without saving them as a rule.

See Managing Allocation Rules for further information.

2. Click Next to continue. You must have allocated 100% of the source data before you can proceed.

Entering the Details

The Details page enables you to specify how you want to post the allocations:

1. [Optional] Type a description to display on the resulting journal or transactions. If you leave this field blank, a description is automatically generated based on the posting date or period you enter, such as "Allocation 2017/008".
   
2. [Multi-company mode only] Select the company the journals or transactions are to be created in.
3. Specify whether you want to create journals or transactions.
4. Enter the journal or transaction posting date and period.
5. Click on the Preview heading to expand the Preview section.
6. [Optional] Click next to Source to view details of the source data for this allocation.
7. [Optional] Click next to Distribution to view details of the transactions that will be created for this allocation.
8. [Optional] If you want to save the details you have entered for this allocation as an allocation template Used to store the details entered during the allocation process, such as the filter structure of the source data, allocation rules used, and distribution details. Dates, periods, and specific amounts are not stored. for future use, click Save in the Allocation Template Bar and enter a name and a description for your allocation template. If you save a template with the same name as an existing one, you will overwrite the existing template. You can manage your allocation templates from the Allocation Templates tab.
9. Click Create.

Note: Allocation journals have a type of "Manual" and a status of "In Progress". You will need to post the journals manually via the Journals tab. For cross-company allocations the intercompany transfers are made, and in the destination companies the corresponding journals are created. This also applies when a chart of accounts structure is active.

Once an allocation transaction has been created successfully, you can view it from the Allocations list view or go on to create a new allocation.

Note:

When created by the Allocation Scheduler, allocation journals have a type of “Manual” and a status of “Complete”.

The allocation transaction line items have a process status of "Not Processed" and a matching status of "Not Matchable". If you create an allocation transaction in error, you can reverse it. See Reversing an Allocation Transaction for more information.

Viewing an Allocation

To view details of an allocation:

1. Click the Allocations tab.
2. From the Allocations list view, click the allocation.

You can access logs created by the allocation process from the Allocation Detail page. See Allocation Detail Fields for more information about the fields on this page.