Allocations Overview

Concept

Allocations is the short name for the concept of moving currency values from one part of a company to another part of the same company or another company is generally rooted in the attempt to match the total cost of production to revenues earned for that production.

Thus overhead costs are a good example of the type of cost that is absorbed initially by one organization, and then distributed later to other organizations based on certain value relationships.

This allocation activity occurs only within the General Ledger and / or Statistical Ledger, and will post the movements into a separate Allocation Ledger that becomes a reporting source for consolidating the General Ledger and / or Statistical Ledger in the various standard financial reports and inquiries.

Features

The allocations documents allow you to:

• Define allocation controls.

• Enter allocations.

• Generate allocations.

Allocation Flowchart

The flowchart provides an overview of the basic general ledger Allocation process.