How To Guide

Setting up GL Allocations
Setting up the Distribution Group .................................................................................... 1
Setting up the Allocation Structure .................................................................................. 2
Enter a Supplier invoice which charges those accounts.................................................. 3
Run the Allocation Processing Program .......................................................................... 4

Account Allocations can be set up to distribute charges sent to one account across multiple accounts
and dimensions. An example of this functionality would be distributing the charges associated with an
electric bill across all the departments at a site that consume the electricity.

Setting up the Distribution Group

Distribution Group The object responsible for determining which dimensions should be receiving the
distributed charge.
Path: Common Data / GL Accounting Tables / Analysis / Distribution Groups.

UTILITYA Indicates that the dimensions 100(Administration), 400(Sales and Marketing) and
500(Services) will receive the distributed charges.

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 Setting up GL Allocations

UTILITYP Indicates that the dimensions 200(Production) and 300(Maintenance) will receive the
distributed charges.

Setting up the Allocation Structure

Allocation Structure The object responsible for establishing the relationship between the originally
charged GL account and the distribution group.
Path: Common Data / GL Accounting Tables / Analysis / Allocation Structures.
In the following example is an allocation structure with two distributions taking place (Figures 1 and 2).
The first line represents a distribution of expenses that were originally charged to account 70400 with
dimension 100. The distribution is set for 60% of the original charge to account 70400 with the
dimensions established in distribution group UTILITYA.
The second line represents a distribution of expenses that were originally charged to account 70400 with
dimension 200. The distribution is set for 40% of the original charge to account 53100 with the
dimensions established in distribution group UTILITYP.
Figure 1

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 Setting up GL Allocations

Figure 2

Enter a Supplier invoice which charges those accounts.

Path: AP-AR Accounting / Invoicing / Supplier Invoices

In this example a utility bill was entered for $110,000:
$10,000 was charged to account 70400 with dimension 100 and
$100,000 was charged to account 70400 with dimension 200.

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 Setting up GL Allocations

Run the Allocation Processing Program

This program will generate the journal entries to allocate expenses in accordance with the established
distribution groups and allocation structures.
Path: Financials / Frequent Processes / Allocation Processing.

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Based on the above scenario you see that:

60% of the $10,000 charge to account 70400/dimension 100 was distributed evenly across dimensions
100, 400 and 500 of that same account.
40% of the $100,000 charge to account 70400/dimension 200 was distributed in a 2-to-1 ratio to
dimensions 200 and 300 of account 53100. (Note the 2-to-1 relationship was defined in the distribution
group).

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