The Cost Allocation module allows processing simple allocations. It is possible to post amounts from one account or a range of accounts to another set of accounts. An example is allocating telephone expenses from one overhead account to individual departments within cost centers. Cost allocations are designed to be processed once a month. Using the Cost Allocation feature is explained in the General Ledger User Guide. Cost Allocation comes at no charge with General Ledger.
Model Division 95 has a few basic Cost Allocations set up to see how the feature works.
The Allocation Management System module allows for more complicated allocations, including allocations of amounts across ID types. This is accomplished by using a set of calculation commands to perform the operations needed to distribute the source information to the appropriate accounts. The distribution percentages can be created in a dynamic table based on account balances, units, or static data items, and can change each time the allocation is run, as the source data changes. While allocations are often performed on expense accounts, the process is just as applicable to other types of accounts. For example, interest revenue on investments may be posted to a pooled account, then allocated based on the percentage of principal owned by each contributor. The allocation uses this percentage to apply the revenue to the contributing investment accounts. AM calculations can be run several times during the month.
Most allocations in Allocation Management are quite complex and usually require the assistance of Professional Services to Set Up and test. The calculations themselves are very similar to those used in Payroll calculations.
The manual for Allocation Management is on our Support website and in your Fundware\data\UserDocumentation folder and contains additional examples. For detailed information, refer to the Blackbaud FundWare User Guides.