Skip to main content

How do I spread a shared cost over departments?

Make an Allocation Rule with the source account and its destinations (by percentage, weight or equal shares), then run Process Allocation each month with the rule and a Till Date. Save posts one voucher per source account.

Screen
General Ledger › Allocation › Allocation Rules, Process Allocation
Who
The cost or management accountant
Takes effect
On save of Process Allocation
Needs first
A Transaction Journal with Allocation ticked

Steps​

  1. On Allocation Rules, pick Allocation Method and Transaction Journal, add the source Account, and in Destination the accounts (with dimensions) and their values. Save.
  2. Each month, open Process Allocation. Posting Date (Till Date follows), pick the rule, Create. The source accounts with a debit balance up to the Till Date come up with their allocation lines.
  3. Check the Allocation Entries, then Save.

What posts​

DocumentWhenDebitCredit
Process AllocationSaveEach destination, its share of the balanceThe source account, its balance

Undoing it is Reverse on the toolbar of Process Allocation.

If something looks wrong​

  • "No rows found with balance amount." The source has no debit balance, or with no rule picked every rule has already run once.
  • The currency on the allocation vouchers is not the company's. The run writes a fixed currency code; see Process Allocation.