Process allocations

This article provides information about allocations, the options for processing them, and how you can use them in budget planning. Use allocations to distribute amounts across multiple ledger account combinations. They help ensure that you charge expenses or revenues to the correct object in accounting.

The following capabilities support this process:

• Manually allocate transaction amounts by using the Split action in accounting distributions, or by applying financial dimension default templates to a document. For more information, see Accounting distributions.
• Automatically allocate transaction amounts based on allocation terms defined on individual main accounts. The system generates allocation account entries for each journal based on the percentage and destination ledger account whenever an accounting entry meets the criteria defined as the source ledger account. For more information, see Main account allocation terms.
• Automatically allocate ledger balances or fixed amounts based on ledger allocation rules. Process the ledger allocation rules on a periodic basis by using allocation journals. For more information, see Allocation rules.

Allocations in budget planning

You can use ledger allocation rules for budget plans. When you use ledger allocation rules in budget planning, the allocation rules work the same way they work in the ledger, but the source data and destination data come from the budget plan. You can manually select ledger allocation rules to use for budget plans. Alternatively, you can use an allocation schedule that runs as part of a workflow process.

Note

You can't use intercompany ledger allocation rules for budget planning.