Add Allocations

Allocations help you move amounts from one set of accounts, projects, classes, or grants to another. From Allocations, you can add allocations based on units or fixed percentages that you update over time, as well as balances or specific percentages of balances.

Tip: You can edit an existing allocation at any time. From the menu of an allocation, select Edit, then save your changes.

  1. From Allocations, select Add.

  2. Under Basics, enter a unique name and helpful description, and determine whether other users can run or edit.

  3. Select Next. Under General, select a type:

    • Direct - Moves account balances from a set of source accounts to a set of destination accounts, or reallocates amounts to projects, classes, and transaction codes within accounts.

    • Indirect expense - Applies a fee schedule to an account balance in order to calculate an amount. After calculation, the allocation debits an expense account and credits an asset account for that amount. Use primarily to allocate investment fees to projects, classes, and transaction codes.

    • Indirect revenue - Uses an income amount to debit an asset account and credit a revenue account. This is helpful when allocating interest income to projects, classes, and transaction codes.

    • Indirect miscellaneous (misc) - Uses an amount to calculate by relative balance or fee schedule. After calculation, the allocation can debit and credit a combination of accounts. This is useful for allocating amounts from project to project, class to class, and transaction code to transaction code without the account type restrictions that are applied to other indirect allocation types.

      These are similar to indirect income and expense, except you're not restricted to certain source and destination accounts. You can create allocations based on the amount calculated in an allocation pool, fees calculated using fee schedules, or income such as interest, dividends, royalties, as well as realized and unrealized gains.

  4. Specify a status, pool, and fee schedule. For more information, see Allocation settings.

  5. For indirect revenue allocations, specify the amounts to allocate.

  6. Determine how you want to handle exclusions. Use relative or specific dates and exclude specific transactions from the calculation as needed.

  7. Choose source and destination methods, then specify post, report, and journal preferences.

  8. Select Next. Under Source and destination, choose an income or expense type and interfund set, then update source and destination account and distribution info as necessary.

    Note: Source and Destination display as separate tabs only when destination method is based on units or percentage.

    Tip: Interfund sets balance accounts when debit and credit accounts aren’t in the same fund. For more details, see Interfund Sets.

  9. Select Next. Under Calculation, base calculations on actual or budgeted amounts, method, and balance percentage. Then determine how to handle accounts with positive or negative balances.

    Tip: Methods are used with your date parameters to calculate balances. For example, average daily balance calculates each day in the range, adds those balances together, and divides them by the number of days in the date range.

  10. Choose how to proceed:

    • Return to previous tabs or save now.

    • To save and go directly to the report, select Save and generate pre-allocation report.

    • To immediately process, select Save and allocate. With this option, the following occurs:

      • Journal entries are created and added to a batch (which manually or automatically post, depending on the allocation's configuration).

      • An allocation report is attached to the batch.

      View the batch from General ledger, Journal entries.