Direct Allocation. With direct allocations you can move GL account balances from a set of source accounts to a set of destination accounts or reallocate amounts to projects, classes, and transaction codes within accounts. This type of allocation is often used to move money from a general account to a specific account. For example, it might be used to distribute the expense of the office building to specific departments.
Indirect Allocation (Expense). An indirect expense allocation uses a fee schedule to apply fees to account balances in order to allocate expenses between accounts. This type of allocation is typically used to allocate investment fees to account characteristics (projects, classes, and transaction codes).
Indirect Allocation (Revenue). An indirect revenue allocation uses a defined amount of income to allocate between accounts and characteristics. This type of allocation debits an asset account and credits a revenue account for the specified amount. Indirect Revenue Allocation is often used to allocate interest income to account characteristics (projects, classes, and transaction codes).
Indirect Allocation (Misc.). An indirect miscellaneous allocation takes an amount you define and then calculates an amount by relative balance, or by fee schedule. This type of allocation is useful for allocation amounts by characteristic without the account type restrictions placed on the other allocation types. The allocation can debit and credit a combination of accounts.
Indirect Cost Allocation. An indirect cost allocation provides the capability to calculate indirect costs associated with a project that can be reimbursed according to grant guidelines. This type of allocation uses specified rates to divide grants and apply the money to appropriate account and projects.
Simple Allocations. Simple Allocations provide an easy way to create an allocation in one complete process, making the setup and maintenance of your allocations easier.
For more information, refer to the articles below or press F1 while logged into the application to browse the Allocation Chapter located under the General Ledger section:
- How to create a Direct Allocation
- How to create an Indirect Allocation (Expense)
- How to create an Indirect Allocation (Revenue)
- How to create an Indirect Allocation (Misc.)
- How to create an Indirect Cost Allocation
- What are Simple Allocations and How are they used?