GL Periodic Allocations -- Sample Calculations

Summary

Some customers, such as non-profit organizations, need to define and periodically allocate amounts from a pool of source accounts to specific recipient accounts. The GL Periodic Allocations feature allows the user to perform these allocations in a batch mode at various intervals (generally monthly, quarterly, and annually) using one of a number of allocation methods.

This topic contains a number of sample allocation calculations to give you an idea of how the system determines allocation distributions.

NOTE: All sample calculations are assuming a Balance type of source and basis amount. See Balance vs Activity for more information.

Calculating Allocations

This section offers detailed information regarding periodic allocations designed to illustrate how Traverse calculates the distribution amounts.

These are the eight steps the system follows when calculating allocation transactions:

  1. Resolve source account list. Traverse creates a list of source accounts based on the source account number and/or segment criteria. Source Segment values are used as defaults for the resolved account detail when values are not provided for the detail entry.
  2. Resolve offset account list. Traverse creates a list of offset accounts based on the offset account number and/or segment criteria. Offset Segment values are used as defaults for the resolved account detail when values are not provided for the detail entry. Resolved Offset Accounts that are inactive or invalid will use the corresponding Source Account.

Traverse creates a list of the target recipient accounts based on the recipient account and/or segment criteria. Recipient Segment values are used as defaults for the resolved account detail when values are not provided for the detail entry.

The system determines the Allocation basis account(s) based on the account and/or segments defined for each recipient account. Basis Segment values are used as defaults for the resolved account detail when values are not provided for the detail entry. Resolved Basis Accounts that are inactive or invalid will use the corresponding Recipient Account.

The balances from the source accounts listed (from the General Ledger balance or activity plus or minus any previous allocations from prior calculations in the same allocation group) are multiplied by the source Percentage to Allocate to result in each account’s Source Amount. These are then added together to determine the Distribution Total.

Allocation Bases for each recipient account (from the GL balance or activity plus or minus any previous allocations from prior calculations in the same allocation group) are determined based on the Allocation Basis Method defined:

  • Fixed Percentage/Amount Method: For fixed amounts or percentages, the chosen value is used.
  • Weighted Method: In a weighted percentage, a Cumulative Total is determined from summing the balances or activity of all recipient basis accounts, which is then used as the divisor in the following formula.

     Recipient basis total
     Cumulative total

    When the Cumulative Total is zero, the calculated Allocation Base Percentage will be zero (0).

  • Average (Daily) Balance: This method differs from a weighted percentage in how the Basis Account balance is determined. For allocations using the Average Balance method, the user enters a beginning and ending period/year for the allocation when the group allocation is run. Then, instead of using each basis account’s balance in the calculation, the system calculates the balance to be used in the following way:
    1. Identifies the starting date as the first day of the beginning period/year and the ending date as the last date of the ending year/period.
    2. Calculates the beginning balance for the account on the beginning date (the ending balance of the previous period/year).
    3. Considers all of the transaction dates between the starting and ending dates and the resulting account balance after each transaction.
      1. Identify all transactions within the beginning and ending fiscal periods.
      2. Entries with transaction dates prior to the beginning of the transaction fiscal period/year should use the beginning date of the transaction period. Entries with transaction dates after the end of the transaction fiscal period/year should use the ending date of the transaction period. This resolves the potential mismatch between transaction dates and fiscal periods.
      3. Use a placeholder for generated allocation transactions when the transaction date used for them will be within the period range.
      4. Aggregate a summary by account, date, fiscal year and period.
    4. Calculates the number of days from the starting date specified to the first transaction (inclusive of the starting date), and then multiplies that number by the beginning balance to get a weighted total for those days.
    5. Repeat this process for each of the transaction dates in the list, culminating with the time period from the last transaction date in the list to the ending date specified.
    6. Sum the weighted totals for each transaction time period
    7. Divide the sum of the weighted totals by the total number of days from the beginning date to the ending date specified for the allocation to arrive at the Average Balance for the associated Basis Account.

To calculate the percentage, Traverse determines a Cumulative Total by summing the average balances of all recipient basis accounts, which is then used as the divisor in the formula.

 Recipient basis average balance
 Cumulative average balance total

When the Cumulative average balance total is zero, the calculated Allocation Base Percentage will be zero (0).

Traverse determines the Distribution Amount for each Recipient Account in a top-down fashion.

  • If the allocation basis is a percentage (either fixed or calculated), the amount is calculated by multiplying the percentage by the Distribution Total.
  • If the allocation basis is a fixed dollar amount, that amount is used.

A running Accumulated Distribution Total (ADT) value is kept as each recipient account’s Distribution Amount is calculated. Handling of ADT shortages or overages in relation to the Distribution Total is determined by the source Allocable Total setting, as follows:

  • If the Allocable Total setting is Any, the calculated Distribution Amount is always used.
  • If the Allocable Total setting is Full or Partial, the recipient’s Distribution Amount is adjusted downward as necessary if at any point the ADT plus the computed Distribution Amount exceeds the Distribution Total. Adjust toward 0 if necessary to properly evaluate the remaining balance when working with negative ADT values.
  • If the Allocable Total setting is Full, the last recipient account’s calculated Distribution Amount is adjusted upward, if necessary, to bring the ADT equal to the Distribution Total.

Finally, the sum of the recipient Distribution Amounts (the ADT) is divided by the Distribution Total to calculate the Source Adjustment Percentage.

The system creates GL transactions for each source account (or its assigned offset account) for its Source Amount, adjusted by the Source Adjustment Percentage. The last source transaction is adjusted, by rounding if necessary, to force the reversing transactions to equal the ADT. These transactions are made in the GL Journal if specified in the allocation group (Usage Type).

The system creates GL transactions to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group (Usage Type). In all cases, the sum of the recipient allocation transactions must balance exactly with the sum of the reversing source transactions.

Sample Calculations

A fixed dollar- or percentage-based allocation is the simplest form of allocation. No resolution of account numbers is necessary, as all accounts are listed by their actual account numbers, and the allocation basis is always defined by a fixed percentage or dollar amount.

Description: 001 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 0 (Account)

Distribution: Full

No source Segment IDs because Type = Account

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit)
1234-11-222   100.00 0
1234-11-333   100.00 0
1234-22-222   100.00 0
4321-00-111   100.00 0

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number: 0 (Account)

Allocation Basis Method: Fixed

No recipient Segment IDs because Type = Account

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Accts (Basis ID)
6789-11-222 Percentage 30.00  
6789-22-222 Amount 5000.00  
9876-11-222 Percentage 100.00  

With an allocation basis method of Fixed, no basis accounts are necessary.

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-11-222 2000.00 -2000.00 0.00
1234-11-333 4000.00 -4000.00 0.00
1234-22-222 1500.00 -1500.00 0.00
4321-00-111 3500.00 -3500.00 0.00
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
6789-11-222 0.00 3300.00 3300.00
6789-22-222 0.00 5000.00 5000.00
9876-11-222 0.00 2700.00 2700.00
Total 11,000.00 0.00 11,000.00
  • Step 1 Resolve source account list. Source accounts are defined as full account numbers; no resolution is necessary. The Source Accounts are used as the Offset Accounts since no alternate offset account is provided.
  • Step 2 Resolve recipient account list. Recipient accounts are defined as full account numbers; no resolution is necessary.
  • Step 3 Resolve recipient basis account lists. With an allocation basis method of Fixed, no basis accounts are necessary.
  • Step 4 Determine Source Amounts. The balances from the four source accounts listed are multiplied by the source Percentage to Allocate to result in each account’s Source Amount. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-11-222 2000.00 x 100.00% (no limit) 2000.00
    1234-11-333 4000.00 x 100.00% (no limit) 4000.00
    1234-22-222 1500.00 x 100.00% (no limit) 1500.00
    4321-00-111 3500.00 x 100.00% (no limit) 3500.00
      Distribution Total 11,000.00
  • Step 5 Determine the Allocation Basis amounts/percentages. The amounts and percentages are expressed as fixed values, so there are no basis amounts/percentages.
  • Step 6 Calculate Distribution amounts. The Distribution Amount for each Recipient Account is determined in a top-down fashion. If the allocation basis is a percentage, the amount is calculated by multiplying the percentage by the Distribution Total; if it is by dollar amount, that amount is used.

    Because the allocation Distribution setting is Full, the sum of the calculated allocations Accumulated Distribution Total (ADT) cannot exceed the Distribution Total. If a recipient allocation would make the ADT exceed the Distribution Total (as the third distribution would in this example), the recipient’s Distribution Amount will be reduced to difference between the Distribution Total and the ADT and any remaining recipients would receive a zero allocation.

    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.0011,000.006789-11-22211,000.00 x 30.00%3300.003300.00
    3300.007700.006789-22-2225000.005000.008300.00
    8300.002700.009876-11-222Max (2700.00, (11,000.00 x 100%))2700.0011,000.00

    The Source Adjustment Percentage is calculated to be (11,000.00/11,000.00) = 100.00%.

  • Step 7 Calculate reversing source transactions. Reversing GL transactions are created for each source account for its Source Amount in the GL Journal or in a temporary table as specified in the allocation group.
    • Source Acct Source Amount Source Adj Pct Debit Credit
    1234-11-222 2000.00 100.00%   2000.00
    1234-11-333 4000.00 100.00%   4000.00
    1234-22-222 1500.00 100.00%   1500.00
    4321-00-111 3500.00 100.00%   3500.00
            11,000.00

    Since the total of the reversing transactions is equal to the sum of the recipient amounts, no adjustment is made to the last source transaction amount.

  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit
    6789-11-2223300.00 
    6789-22-2225000.00 
    9876-11-2222700.00 
     11,000.00 

The system treats all debit balances as positive and all credit balances as negative when calculating account balances for the source accounts regardless of the balance type of the source accounts. The distribution total will be the net of the source amounts.

Description: 001-2 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 0 (Account)

Distribution: Full

No source Segment IDs because Type = Account

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit) Balance Type Balance in Debit/Credit
1234-11-222   100.00 0 Debit Type Debit
2234-11-334   100.00 0 Credit Type Credit
1234-22-222   100.00 0 Debit Type Debit

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number: 0 (Account)

Allocation Basis Method: Fixed

No recipient Segment IDs because Type = Account

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Accts (Basis ID) Balance Type
6789-11-222 Percentage 50.00   Debit Type
4489-22-224 Percentage 20.00   Credit Type
9876-11-222 Percentage 30.00   Debit Type

With an allocation basis method of Fixed, no basis accounts are necessary.

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-11-222 1000.00 -1000.00 0.00
2234-11-334 -500.00 500.00 0.00
1234-22-222 2000.00 -2000.00 0.00
Net Allocation 2500.00    
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
6789-11-222 0.00 1250.00 1250.00
4489-22-224 0.00 500.00 500.00
9876-11-222 0.00 750.00 750.00
Total 2500.00 0.00 2500.00
  • Step 1 Resolve source account list. Source accounts are defined as full account numbers; no resolution is necessary.
  • Step 2 Resolve recipient account list. Recipient accounts are defined as full account numbers; no resolution is necessary.
  • Step 3 Resolve recipient basis account lists. With an allocation basis method of Fixed, no basis accounts are necessary.
  • Step 4 Determine Source Amounts. The balances from the three source accounts listed are multiplied by the source Percentage to Allocate to result in each account’s Source Amount. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-11-222 1000.00 x 100.00% (no limit) 1000.00
    2234-11-334 -500.00 x 100.00% (no limit) -500.00
    1234-22-222 2000.00 x 100.00% (no limit) 2000.00
      Distribution Total 2500.00
  • Step 5 Determine the Allocation Basis amounts/percentages. The amounts and percentages are expressed as fixed values, so there are no basis amounts/percentages.
  • Step 6 Calculate Distribution amounts. The Distribution Amount for each Recipient Account is determined in a top-down fashion. If the allocation basis is a percentage, the amount is calculated by multiplying the percentage by the Distribution Total; if it is by dollar amount, that amount is used.

    Because the allocation Distribution setting is Full, the sum of the calculated allocations Accumulated Distribution Total (ADT) cannot exceed the Distribution Total. If a recipient allocation would make the ADT exceed the Distribution Total (as the third distribution would in this example), the recipient’s Distribution Amount will be reduced to difference between the Distribution Total and the ADT and any remaining recipients would receive a zero allocation.

    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.002500.006789-11-2222500.00 x 50.00%1250.001250.00
    1250.001250.004489-22-2242500.00 x 20.00%500.001750.00
    1750.00750.009876-11-2222500.00 x 30.00%750.002500.00

    The Source Adjustment Percentage is calculated to be (2500.00/2500.00) = 100.00%.

  • Step 7 Calculate reversing source transactions. Reversing GL transactions are created for each source account for its Source Amount in the GL Journal or in a temporary table as specified in the allocation group.
    • Source Acct Debit Credit
    1234-11-222   1000.00
    2234-11-334 500.00  
    1234-22-222   2000.00
      NET Total 2500.00

    Since the total of the reversing transactions is equal to the sum of the recipient amounts, no adjustment is made to the last source transaction amount.

  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit
    6789-11-2221250.00 
    4489-22-224500.00 
    9876-11-222750.00 
     2500.00 

The system treats all debit balances as positive and all credit balances as negative when calculating account balances for the source accounts regardless of the balance type of the source accounts. The distribution total will be the net of the source amounts.

Description: 001-3 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 0 (Account)

Distribution: Full

No source Segment IDs because Type = Account

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit) Balance Type Balance in Debit/Credit
1234-11-222   100.00 0 Debit Type Debit
2234-11-334   100.00 0 Credit Type Debit
1234-22-222   100.00 0 Debit Type Debit

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number: 0 (Account)

Allocation Basis Method: Fixed

No recipient Segment IDs because Type = Account

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Accts (Basis ID) Balance Type
6789-11-222 Percentage 50.00   Debit Type
4489-22-224 Percentage 20.00   Credit Type
9876-11-222 Percentage 30.00   Debit Type

With an allocation basis method of Fixed, no basis accounts are necessary.

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-11-222 1000.00 -1000.00 0.00
2234-11-334 500.00 -500.00 0.00
1234-22-222 2000.00 -2000.00 0.00
Net Allocation 3500.00    
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
6789-11-222 0.00 1750.00 1750.00
4489-22-224 0.00 500.00 500.00
9876-11-222 0.00 1050.00 1050.00
Total 3500.00 0.00 3500.00
  • Step 1 Resolve source account list. Source accounts are defined as full account numbers; no resolution is necessary.
  • Step 2 Resolve recipient account list. Recipient accounts are defined as full account numbers; no resolution is necessary.
  • Step 3 Resolve recipient basis account lists. With an allocation basis method of Fixed, no basis accounts are necessary.
  • Step 4 Determine Source Amounts. The balances from the three source accounts listed are multiplied by the source Percentage to Allocate to result in each account’s Source Amount. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-11-222 1000.00 x 100.00% (no limit) 1000.00
    2234-11-334 500.00 x 100.00% (no limit) 500.00
    1234-22-222 2000.00 x 100.00% (no limit) 2000.00
      Distribution Total (NET) 3500.00
  • Step 5 Determine the Allocation Basis amounts/percentages. The amounts and percentages are expressed as fixed values, so there are no basis amounts/percentages.
  • Step 6 Calculate Distribution amounts. The Distribution Amount for each Recipient Account is determined in a top-down fashion. If the allocation basis is a percentage, the amount is calculated by multiplying the percentage by the Distribution Total; if it is by dollar amount, that amount is used.

    Because the allocation Distribution setting is Full, the sum of the calculated allocations Accumulated Distribution Total (ADT) cannot exceed the Distribution Total. If a recipient allocation would make the ADT exceed the Distribution Total (as the third distribution would in this example), the recipient’s Distribution Amount will be reduced to difference between the Distribution Total and the ADT and any remaining recipients would receive a zero allocation.

    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.003500.006789-11-2222500.00 x 50.00%1750.001750.00
    1750.001750.004489-22-2242500.00 x 20.00%700.002450.00
    2450.001050.009876-11-2222500.00 x 30.00%1050.003500.00

    The Source Adjustment Percentage is calculated to be (3500.00/3500.00) = 100.00%.

  • Step 7 Calculate reversing source transactions. Reversing GL transactions are created for each source account for its Source Amount in the GL Journal or in a temporary table as specified in the allocation group.
    • Source Acct Debit Credit
    1234-11-222   1000.00
    2234-11-334   500.00
    1234-22-222   2000.00
      NET Total 3500.00

    Since the total of the reversing transactions is equal to the sum of the recipient amounts, no adjustment is made to the last source transaction amount.

  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit
    6789-11-2221750.00 
    4489-22-224700.00 
    9876-11-2221050.00 
     3500.00 

Source accounts are defined by account number, but Recipient accounts are defined by segment. The allocation basis is defined as a fixed percentage or dollar amount.

Description: 002 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 0 (Account)

Distribution: Any

No source Segment IDs because Type = Account

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit)
1234-11-222 1234-99-222 100.00 0
1234-11-333 1234-99-333 100.00 0
1234-22-222 1234-99-222 100.00 0
4321-00-111 4321-99-111 100.00 0

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number: 2 (Segment, second segment (DEP))

Allocation Basis Method: Fixed

Recipient Segments:

Recipient Segment (Segment ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Segment (Basis ID)
11 Percentage 25.00  
22 Percentage 50.00  
33 Percentage 10.00  

With an allocation basis method of Fixed, no basis accounts are necessary.

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Accts (Basis ID)
6789-xx-222      

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-11-222 2000.00 0.00 2000.00
1234-11-333 4000.00 0.00 4000.00
1234-22-222 1500.00 0.00 1500.00
4321-00-111 3500.00 0.00 3500.00
Offset Acct Number Starting Balance Allocation Entries Ending Balance
1234-99-222   -2975.00 -2975.00
1234-99-333   -3400.00 -3400.00
4321-99-111   -2975.00 -2975.00
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
6789-11-222 0 2750.00 2750.00
6789-22-222 0 5500.00 5500.00
6789-33-222 0 1100.00 1100.00
Total 11,000.00 0.00 11,000.00
  • Step 1 Resolve source account list. Source accounts are defined as full account numbers; no resolution is necessary.
  • Step 2 Resolve recipient account list. Recipient accounts 6789-xx-222 for segments 11, 22, and 33 resolves to 6789-11-222, 6789-22-222, and 6789-33-222.
  • Step 3 Resolve recipient basis account lists. With an allocation basis method of Fixed, no basis accounts are necessary.
  • Step 4 Determine Source Amounts. The balances from the four source accounts listed are multiplied by the source Percentage to Allocate to result in each account’s Source Amount. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-11-222 2000.00 x 100.00% (no limit) 2000.00
    1234-11-333 4000.00 x 100.00% (no limit) 4000.00
    1234-22-222 1500.00 x 100.00% (no limit) 1500.00
    4321-00-111 3500.00 x 100.00% (no limit) 3500.00
      Distribution Total 11,000.00
  • Step 5 Determine the Allocation Basis Percentages. Allocation Bases are fixed percentages; no calculation is necessary.
  • Step 6 Calculate Distribution amounts. The amount is calculated by multiplying the recipient’s percentage by the Distribution Total. Because the allocation Distribution setting for this allocation is Any, no adjustments are made to the calculated distribution amounts.
    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.0011,000.006789-11-22211,000.00 x 25.00%2750.002750.00
    2750.008250.006789-22-22211,000.00 x 50.00%5500.008250.00
    8250.002750.006789-33-22211,000.00 x 10.00%1100.009350.00

    The Source Adjustment Percentage is calculated to be (9350.00/11,000.00) = 85.00%.

  • Step 7 Create Reversing Source GL Transactions. GL transactions are created for, in this case, each source account’s assigned offset account for its Source Amount multiplied by the Source Adjustment Percentage (85.00%) in the GL Journal or in a temporary table as specified in the allocation group. Note that account 1234-99-222 is used as the offset account for two source accounts, and so its reversing entry is a summation of the two entries.
    • Source Acct Source Amount Source Adj Pct Debit Credit
    1234-11-222 2000.00 85.00%   1700.00
    1234-11-333 4000.00 85.00%   3400.00
    1234-22-222 1500.00 85.00%   1275.00
    4321-00-111 3500.00 85.00%   2975.00
            9350.00
  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit
    6789-11-2222750.00 
    6789-22-2225500.00 
    6789-33-2221100.00 
     9350.00 

A straight account-based allocation is simplest form of weighted allocation. No resolution of account numbers is necessary, as all accounts are listed by their actual account numbers.

Description: 003 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 0 (Account)

Distribution: Full

No source Segment IDs because Type = Account

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit)
1234-11-222 1555-99-000 100.00 0
1234-11-333 1555-99-000 100.00 0
1234-22-222 1555-99-000 100.00 0
4321-00-111 1555-99-000 100.00 0

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number: 0 (Account)

Allocation Basis Method: Weighted

No recipient Segment IDs because Type = Account

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Accts (Basis ID)
6789-11-222 NA   5000-11-000
6789-22-222 NA   5000-22-000
9876-11-222 NA   5000-33-000, 5000-44-000

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-11-222 2000.00 .00 2000.00
1234-11-333 4000.00 .00 4000.00
1234-22-222 1500.00 .00 1500.00
4321-00-111 3500.00 .00 3500.00
Offset Acct Number Starting Balance Allocation Entries Ending Balance
1555-99-000 .00 -11,000.00 -11,000.00
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
6789-11-222 .00 2200.00 2200.00
6789-22-222 .00 4400.00 4400.00
9876-11-222 .00 4400.00 4400.00
Basis Acct Number Starting Balance Allocation Entries Ending Balance
5000-11-000 2000.00 .00 2000.00
5000-22-000 4000.00 .00 4000.00
5000-33-000 3000.00 .00 3000.00
5000-44-000 1000.00 .00 1000.00
Total 21,000.00 0.00 21,000.00
  • Step 1 Resolve source account list. Source accounts are defined as full account numbers; no resolution is necessary.
  • Step 2 Resolve recipient account list. Recipient accounts are defined as full account numbers; no resolution is necessary.
  • Step 3 Resolve recipient basis account lists. Allocation basis accounts are defined as full account numbers; no resolution is necessary.
  • Step 4 Determine Source Amounts. The balances from the four source accounts listed are multiplied by the source Percentage to Allocate to result in each account’s Source Amount. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-11-222 2000.00 x 100.00% (no limit) 2000.00
    1234-11-333 4000.00 x 100.00% (no limit) 4000.00
    1234-22-222 1500.00 x 100.00% (no limit) 1500.00
    4321-00-111 3500.00 x 100.00% (no limit) 3500.00
      Distribution Total 11,000.00
  • Step 5 Determine the Allocation Basis Percentages. The Cumulative Allocation Basis Total is determined by adding together the balances in the four allocation basis accounts (10,000.00). The Allocation Percentage is then determined for each of the recipient accounts by dividing the balance in its assigned Allocation Basis by the Cumulative Allocation Basis Total. Note that recipient account 9876-11-222 uses two basis accounts and receives a distribution from each of them.
    Cumulative Alloc. Basis Total Recipient Allocation Percentage
    Alloc. Basis AccountAlloc. Basis Amount Recipient Acct.Allocation Percent CalculationAlloc. Percentage
    5000-11-0002000.00 6789-11-2222000.00 / 10,000.0020.00
    5000-22-0004000.00 6789-22-2224000.00 / 10,000.0040.00
    5000-33-0003000.00 9876-11-2223000.00 / 10,000.0030.00
    5000-44-0001000.00 9876-11-2221000.00 / 10,000.0010.00
    Total10,000.00    
  • Step 6 Calculate Distribution amounts. The Distribution Amount for each Recipient Account is then determined by multiplying the Allocation Percentage for that account by the Distribution Total.

    Because the allocation Distribution setting is Full, the sum of the calculated allocations Accumulated Distribution Total (ADT) must equal the Distribution Total, which it does in this example.

    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.0011,000.006789-11-22211,000.00 x 20.00%2200.002200.00
    2200.008800.006789-22-22211,000.00 x 40.00%4400.006600.00
    6600.004400.009876-11-22211,000.00 x 30.00%3300.009900.00
    9900.001100.009876-11-22211,000.00 x 10.00%1100.0011,000.00

    The Source Adjustment Percentage is calculated to be (11,000.00/11,000.00) = 100.00%.

  • Step 7 Create Reversing Source GL Transactions. GL transactions are created for, in this case, each source account’s assigned offset account for its Source Amount multiplied by the Source Adjustment Percentage (100.00%) in the GL Journal or in a temporary table as specified in the allocation group. Note that account 1555-99-000 is used as the offset account for all four source accounts, and so its reversing entry is a summation of these entries.
    • Offset Acct Debit Credit
    1555-99-000   11,000.00
        11,000.00
  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit 
    6789-11-2222200.00  
    6789-22-2224400.00  
    9876-11-2224400.00  (3300 + 1100)
     11,000.00  
  • The system treats all debit balances as positive and all credit balances as negative when calculating the account balance for the source accounts regardless of the balance type of the source accounts. The distribution total will be the net of the source amounts.
  • The system treats all debit balances as positive and all credit balances as negative when calculating the account balance for the basis accounts regardless of the balance type of the basis accounts. The total Basis Total will be the net of the basis amounts.

Description: 003-2 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 0 (Account)

Distribution: Full

No source Segment IDs because Type = Account

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit) Balance Type Balance in Debit/Credit
1234-11-222   100.00 0 Debit Type Debit
2234-11-334   100.00 0 Credit Type Credit
1234-22-222   100.00 0 Debit Type Debit

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number: 0 (Account)

Allocation Basis Method: Weighted

No recipient Segment IDs because Type = Account

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Recipient Acct Balance Type Basis Accts (Basis ID) Basis Acct Balance Type Basis Acct Balance in Debit/Credit
6789-11-222 NA   Debit Type 5000-11-000 Debit Type Debit
4489-22-224 NA   Credit Type 4000-22-000 Credit Type Credit
9876-11-222 NA   Debit Type 5000-33-000 Debit Type Debit

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-11-222 1000.00 -1000.00 0.00
2234-11-334 -500.00 500.00 0.00
1234-22-222 2000.00 -2000.00 0.00
Net Allocation 2500.00    
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
6789-11-222 .00 2000.00 2000.00
4489-22-224 .00 -1000.00 -1000.00
9876-11-222 .00 1500.00 1500.00
Basis Acct Number Starting Balance Allocation Entries Ending Balance
5000-11-000 1000.00 .00 1000.00
4000-22-000 -500.00 .00 -500.00
5000-33-000 750.00 .00 750.00
Total 3750.00 0.00 3750.00
  • Step 1 Resolve source account list. Source accounts are defined as full account numbers; no resolution is necessary.
  • Step 2 Resolve recipient account list. Recipient accounts are defined as full account numbers; no resolution is necessary.
  • Step 3 Resolve recipient basis account lists. Allocation basis accounts are defined as full account numbers; no resolution is necessary.
  • Step 4 Determine Source Amounts. The balances from the three source accounts listed are multiplied by the source Percentage to Allocate to result in each account’s Source Amount. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-11-222 1000.00 x 100.00% (no limit) 1000.00
    2234-11-334 -500.00 x 100.00% (no limit) -500.00
    1234-22-222 2000.00 x 100.00% (no limit) 2000.00
      Distribution Total (NET) 2500.00
  • Step 5 Determine the Allocation Basis Percentages.The Cumulative Allocation Basis Total is determined by adding together the balances in the three allocation basis accounts (1250.00). The Allocation Percentage is then determined for each of the recipient accounts by dividing the balance in its assigned Allocation Basis by the Cumulative Allocation Basis Total.
    Cumulative Alloc. Basis Total Recipient Allocation Percentage
    Alloc. Basis AccountAlloc. Basis Amount Recipient Acct.Allocation Percent CalculationAlloc. Percentage
    5000-11-0001000.00 6789-11-2221000.00 / 1250.0080.00
    4000-22-000-500.00 4489-22-224-500.00 / 1250.00-40.00
    5000-33-000750.00 9876-11-222750.00 / 1250.0060.00
    NET Basis Total1250.00    
  • Step 6 Calculate Distribution amounts. The Distribution Amount for each Recipient Account is then determined by multiplying the Allocation Percentage for that account by the Distribution Total.

    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.002500.006789-11-2222500.00 x 80.00%2000.002000.00
    2000.00500.004489-22-2242500.00 x -40.00%-1000.001000.00
    1000.001500.009876-11-2222500.00 x 60.00%1500.002500.00

    The Source Adjustment Percentage is calculated to be (2500.00/2500.00) = 100.00%.

  • Step 7 Create Reversing Source GL Transactions. GL transactions are created for, in this case, each source account’s assigned offset account for its Source Amount multiplied by the Source Adjustment Percentage (100.00%) in the GL Journal or in a temporary table as specified in the allocation group. Note that account 1555-99-000 is used as the offset account for all four source accounts, and so its reversing entry is a summation of these entries.
    Source AcctDebitCredit
    1234-11-222 1000.00
    2234-11-334500.00 
    1234-22-222 2000.00
     NET Total2500.00

    Since the total of the reversing transactions is equal to the sum of the recipient amounts, no adjustment is made to the last source transaction amount.

  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit
    6789-11-2222000.00 
    4489-22-224 1000.00
    9876-11-2221500.00 
     2500.00 
  • The system treats all debit balances as positive and all credit balances as negative when calculating the account balance for the source accounts regardless of the balance type of the source accounts. The distribution total will be the net of the source amounts.
  • The system treats all debit balances as positive and all credit balances as negative when calculating the account balance for the basis accounts regardless of the balance type of the basis accounts. The total Basis Total will be the net of the basis amounts.

Description: 003-3 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 0 (Account)

Distribution: Full

No source Segment IDs because Type = Account

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit) Balance Type Balance in Debit/Credit
1234-11-222   100.00 0 Debit Type Debit
2234-11-334   100.00 0 Credit Type Debit
1234-22-222   100.00 0 Debit Type Debit

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number: 0 (Account)

Allocation Basis Method: Weighted

No recipient Segment IDs because Type = Account

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Recipient Acct Balance Type Basis Accts (Basis ID) Basis Acct Balance Type Basis Acct Balance in Debit/Credit
6789-11-222 NA   Debit Type 5000-11-000 Debit Type Debit
4489-22-224 NA   Credit Type 4000-22-000 Credit Type Credit
9876-11-222 NA   Debit Type 5000-33-000 Debit Type Debit

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-11-222 1000.00 -1000.00 0.00
2234-11-334 500.00 500.00 0.00
1234-22-222 2000.00 -2000.00 0.00
Net Allocation 3500.00    
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
6789-11-222 .00 2800.00 2800.00
4489-22-224 .00 -1400.00 -1400.00
9876-11-222 .00 2100.00 2100.00
Basis Acct Number Starting Balance Allocation Entries Ending Balance
5000-11-000 1000.00 .00 1000.00
4000-22-000 -500.00 .00 -500.00
5000-33-000 750.00 .00 750.00
Total 4750.00 0.00 4750.00
  • Step 1 Resolve source account list. Source accounts are defined as full account numbers; no resolution is necessary.
  • Step 2 Resolve recipient account list. Recipient accounts are defined as full account numbers; no resolution is necessary.
  • Step 3 Resolve recipient basis account lists. Allocation basis accounts are defined as full account numbers; no resolution is necessary.
  • Step 4 Determine Source Amounts. The balances from the three source accounts listed are multiplied by the source Percentage to Allocate to result in each account’s Source Amount. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-11-222 1000.00 x 100.00% (no limit) 1000.00
    2234-11-334 500.00 x 100.00% (no limit) 500.00
    1234-22-222 2000.00 x 100.00% (no limit) 2000.00
      Distribution Total (NET) 3500.00
  • Step 5 Determine the Allocation Basis Percentages.The Cumulative Allocation Basis Total is determined by adding together the balances in the three allocation basis accounts (1250.00). The Allocation Percentage is then determined for each of the recipient accounts by dividing the balance in its assigned Allocation Basis by the Cumulative Allocation Basis Total.
    Cumulative Alloc. Basis Total Recipient Allocation Percentage
    Alloc. Basis AccountAlloc. Basis Amount Recipient Acct.Allocation Percent CalculationAlloc. Percentage
    5000-11-0001000.00 6789-11-2221000.00 / 1250.0080.00
    4000-22-000-500.00 4489-22-224-500.00 / 1250.00-40.00
    5000-33-000750.00 9876-11-222750.00 / 1250.0060.00
    NET Basis Total1250.00    
  • Step 6 Calculate Distribution amounts. The Distribution Amount for each Recipient Account is then determined by multiplying the Allocation Percentage for that account by the Distribution Total.

    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.003500.006789-11-2223500.00 x 80.00%2800.002800.00
    2800.00700.004489-22-2243500.00 x -40.00%-1400.001400.00
    1400.002100.009876-11-2223500.00 x 60.00%2100.003500.00

    The Source Adjustment Percentage is calculated to be (3500.00/3500.00) = 100.00%.

  • Step 7 Create Reversing Source GL Transactions. GL transactions are created for, in this case, each source account’s assigned offset account for its Source Amount multiplied by the Source Adjustment Percentage (100.00%) in the GL Journal or in a temporary table as specified in the allocation group. Note that account 1555-99-000 is used as the offset account for all four source accounts, and so its reversing entry is a summation of these entries.
    Source AcctDebitCredit
    1234-11-222 1000.00
    2234-11-334 500.00
    1234-22-222 2000.00
     NET Total3500.00

    Since the total of the reversing transactions is equal to the sum of the recipient amounts, no adjustment is made to the last source transaction amount.

  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit
    6789-11-2222800.00 
    4489-22-224 1400.00
    9876-11-2222100.00 
     3500.00 
  • The system treats all debit balances as positive and all credit balances as negative when calculating the account balance for the source accounts regardless of the balance type of the source accounts. The distribution total will be the net of the source amounts.
  • The system treats all debit balances as positive and all credit balances as negative when calculating the account balance for the basis accounts regardless of the balance type of the basis accounts. The total Basis Total will be the net of the basis amounts.

Description: 003-4 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 0 (Account)

Distribution: Full

No source Segment IDs because Type = Account

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit) Balance Type Balance in Debit/Credit
1234-11-222   100.00 0 Debit Type Debit
2234-11-334   100.00 0 Credit Type Debit
1234-22-222   100.00 0 Debit Type Debit

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number: 0 (Account)

Allocation Basis Method: Weighted

No recipient Segment IDs because Type = Account

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Recipient Acct Balance Type Basis Accts (Basis ID) Basis Acct Balance Type Basis Acct Balance in Debit/Credit
6789-11-222 NA   Debit Type 5000-11-000 Debit Type Debit
4489-22-224 NA   Credit Type 4000-22-000 Credit Type Debit
9876-11-222 NA   Debit Type 5000-33-000 Debit Type Debit

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-11-222 1000.00 -1000.00 0.00
2234-11-334 500.00 -500.00 0.00
1234-22-222 2000.00 -2000.00 0.00
Net Allocation 3500.00    
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
6789-11-222 .00 1555.40 1555.40
4489-22-224 .00 777.70 777.70
9876-11-222 .00 1166.90 1166.90
Basis Acct Number Starting Balance Allocation Entries Ending Balance
5000-11-000 1000.00 .00 1000.00
4000-22-000 500.00 .00 -500.00
5000-33-000 750.00 .00 750.00
Total 5750.00 0.00 5750.00
  • Step 1 Resolve source account list. Source accounts are defined as full account numbers; no resolution is necessary.
  • Step 2 Resolve recipient account list. Recipient accounts are defined as full account numbers; no resolution is necessary.
  • Step 3 Resolve recipient basis account lists. Allocation basis accounts are defined as full account numbers; no resolution is necessary.
  • Step 4 Determine Source Amounts. The balances from the three source accounts listed are multiplied by the source Percentage to Allocate to result in each account’s Source Amount. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-11-222 1000.00 x 100.00% (no limit) 1000.00
    2234-11-334 500.00 x 100.00% (no limit) 500.00
    1234-22-222 2000.00 x 100.00% (no limit) 2000.00
      Distribution Total (NET) 3500.00
  • Step 5 Determine the Allocation Basis Percentages.The Cumulative Allocation Basis Total is determined by adding together the balances in the three allocation basis accounts (2250.00). The Allocation Percentage is then determined for each of the recipient accounts by dividing the balance in its assigned Allocation Basis by the Cumulative Allocation Basis Total.
    Cumulative Alloc. Basis Total Recipient Allocation Percentage
    Alloc. Basis AccountAlloc. Basis Amount Recipient Acct.Allocation Percent CalculationAlloc. Percentage
    5000-11-0001000.00 6789-11-2221000.00 / 2250.0044.44444444
    4000-22-000500.00 4489-22-224500.00 / 2250.0022.22222222
    5000-33-000750.00 9876-11-222750.00 / 2250.0033.33333333
    NET Basis Total2250.00    
  • Step 6 Calculate Distribution amounts. The Distribution Amount for each Recipient Account is then determined by multiplying the Allocation Percentage for that account by the Distribution Total.

    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.003500.006789-11-2223500.00 x 44%1555.401555.40
    1555.401944.604489-22-2243500.00 x 22%777.702333.10
    2333.101166.909876-11-2223500.00 x 33%1166.903500.00

    The Source Adjustment Percentage is calculated to be (3500.00/3500.00) = 100.00%.

  • Step 7 Calculate Reversing Source GL Transactions. GL transactions are created for each source account for its Source Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Source AcctDebitCredit
    1234-11-222 1000.00
    2234-11-334 500.00
    1234-22-222 2000.00
     NET Total3500.00

    Since the total of the reversing transactions is equal to the sum of the recipient amounts, no adjustment is made to the last source transaction amount.

  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit
    6789-11-2221555.40 
    4489-22-224777.70 
    9876-11-2221166.90 
     3500.00 

When the source for the allocation has a type of Segment, the user specifies an account segment for the allocation (1 to x, depending on the defined segments) and then selects from a list of segment values as the source for the allocation (and optionally, their corresponding offset segments). The source accounts are then defined for the selected segments. The resulting group of accounts is resolved at runtime.

Description: 004 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 2 (Segment, second segment (DEP))

Distribution: Partial

Source Segments:

Source Segment (Segment ID) Offset Segment (Offset ID) (Percentage) (Limit)
00      

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit)
1234-xx-222   80.00 0
2345-xx-222   80.00 0
3456-xx-222   100.00 10,000.00

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number:0 (Account)

Allocation Basis Method: Weighted

No recipient Segment IDs because Type = Account

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Accts (Basis ID)
6789-11-222 NA   5000-11-000
6789-22-222 NA   5000-22-000
9876-11-222 NA   5000-33-000, 5000-44-000

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-00-222 3000.00 -2400.00 600.00
2345-00-222 5000.00 -4000.00 1000.00
3456-00-222 25,000.00 -10,000.00 15,000.00
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
6789-11-222 .00 3280.00 3280.00
6789-22-222 .00 6560.00 6560.00
9876-11-222 .00 6560.00 6560.00
Basis Acct Number Starting Balance Allocation Entries Ending Balance
5000-11-000 2000.00 .00 2000.00
5000-22-000 4000.00 .00 4000.00
5000-33-000 3000.00 .00 3000.00
5000-44-000 1000.00 .00 1000.00
Total 43,000.00 0.00 43,000.00
  • Step 1 Resolve source account list. Source accounts 1234-xx-222, 2345-xx-222, and 3456-xx-222 for segment 00 resolves to 1234-00-222, 2345-00-222, and 3456-00-222.
  • Step 2 Resolve recipient account list. Recipient accounts are defined as full account numbers; no resolution is necessary.
  • Step 3 Resolve recipient basis account lists. Allocation basis accounts are defined as full account numbers; no resolution is necessary.
  • Step 4 Determine Source Amounts. The balances from the three resolved source accounts are multiplied by the source Percentage to Allocate to result in each account’s Source Amount, which is limited by the Allocation Limit, if one is specified. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-00-222 3000.00 x 80.00% (no limit) 2400.00
    2345-00-222 5000.00 x 80.00% (no limit) 4000.00
    3456-00-222 25,000.00 x 100.00% (10,000.00 limit) 10,000.00
      Distribution Total 16,400.00
  • Step 5 Determine the Allocation Basis Percentages.The Cumulative Allocation Basis Total is determined by adding together the balances in the four allocation basis accounts (10,000.00). The Allocation Percentage is then determined for each of the recipient accounts by dividing the balance in its assigned Allocation Basis by the Cumulative Allocation Basis Total. (Note that for the third recipient account, the balance in both accounts added together is divided by the Cumulative Allocation Basis Total.)
    Cumulative Alloc. Basis Total Recipient Allocation Percentage
    Alloc. Basis AccountAlloc. Basis Amount Recipient Acct.Allocation Percent CalculationAlloc. Percentage
    5000-11-0002000.00 6789-11-2222000.00 / 10,000.0020.00
    5000-22-0004000.00 6789-22-2224000.00 / 10,000.0040.00
    5000-33-0003000.00 9876-11-222(3000.00 + 1000.00) / 10,000.0040.00
    5000-44-0001000.00    
    Total10,000.00    
  • Step 6 Calculate Distribution amounts. The Distribution Amount for each Recipient Account is then determined by multiplying the Allocation Percentage for that account by the Distribution Total.

    Because the allocation Distribution setting is Partial, the sum of the calculated allocations Accumulated Distribution Total (ADT) may be less than, but cannot exceed the Distribution Total, which it does not in this example.

    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.0016,400.006789-11-22216,400.00 x 20.00%3280.003280.00
    3280.0013,120.006789-22-22216,400.00 x 40.00%6560.009840.00
    9840.006560.009876-11-22216,400.00 x 40.00%6560.0016,400.00

    The Source Adjustment Percentage is calculated to be (16,400.00/16,400.00) = 100.00%.

  • Step 7 Create Reversing Source GL Transactions. GL transactions are created for each source account for its Source Amount multiplied by the Source Adjustment Percentage (100.00%) in the GL Journal or in a temporary table as specified in the allocation group.
    • Source Acct Debit Credit
    1234-00-222   2400.00
    2345-00-222   4000.00
    3456-00-222   10,000.00
        16,400.00
  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit
    6789-11-2223280.00 
    6789-22-2226560.00 
    9876-11-2226560.00 
     16,400.00 

When the recipients for the allocation have a type of Segment, the user specifies an account segment. If the user then chooses a Weighted or Average Balance method, he or she creates a list of accounts masked for the chosen segment that will form the list of recipients for each individual recipient segment defined. The resulting group of recipient and allocation basis accounts is resolved at runtime and is based on these values.

Description: 005 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 2 (Segment, second segment (DEP))

Distribution: Full

Source Segments:

Source Segment (Segment ID) Offset Segment (Offset ID) (Percentage) (Limit)
00      

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit)
1234-xx-222   100.00 0
2345-xx-222   100.00 0
3456-xx-222   100.00 0

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number: 2 (Segment, second segment (DEP))

Allocation Basis Method: Weighted

Recipient Segments:

Recipient Segment (Segment ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Segment (Basis ID)
11 NA   11
22 NA   22
33 NA   33

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Accts (Basis ID)
6789-xx-222     5000-xx-000
9876-xx-222     5001-xx-000
5555-xx-222     5002-xx-000, 5003-xx-000

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-00-222 3000.00 -3000.00 .00
2345-00-222 5000.00 -5000.00 .00
3456-00-222 10,000.00 -10,000.00 .00
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
6789-11-222 .00 2250.00 2250.00
6789-22-222 .00 4500.00 4500.00
6789-33-222 .00 3375.00 3375.00
9876-11-222 .00 1125.00 1125.00
5555-11-222 .00 3375.00 3375.00
5555-33-222 .00 3375.00 3375.00
Basis Acct Number Starting Balance Allocation Entries Ending Balance
5000-11-000 2000.00 .00 2000.00
5000-22-000 4000.00 .00 4000.00
5000-33-000 3000.00 .00 3000.00
5001-11-000 1000.00 .00 1000.00
5002-11-000 2000.00 .00 2000.00
5002-33-000 3000.00 .00 3000.00
5003-11-000 1000.00 .00 1000.00
Total 34,000.00 0.00 34,000.00
  • Step 1 Resolve source account list. Source accounts 1234-xx-222, 2345-xx-222, and 3456-xx-222 for segment 00 resolves to 1234-00-222, 2345-00-222, and 3456-00-222.
  • Step 2 Resolve recipient account list. Recipient account 6789-xx-222 for segments 11, 22, and 33 resolves as 6789-11-222, 6789-22-222, and 6789-33-222. Recipient account 9876-xx-222 for segments 11, 22, and 33 resolves as 9876-11-222 because the accounts do not exist for segments 22 and 33. Recipient account 5555-xx-222 for segments 11, 22, and 33 resolves as 5555-11-222 and 5555-33-2222 because the account does not exist for segment 22.
    Recipient AcctRecipient SegmentResolved Recip Acct
    6789-xx-222116789-11-222
     226789-22-222
     336789-33-222
    9876-xx-222119876-11-222
     22no account
     33no account
    5555-xx-222115555-11-222
     22no account
     335555-33-222
  • Step 3 Resolve recipient basis account lists. Allocation basis accounts are defined for each account in the recipient list and masked with each recipient segment’s basis segment in the same fashion as the recipient account list. Here is the resulting recipient accounts and their basis accounts:
    Recipient AcctRecipient SegmentResolved Recip Acct
    Basis Acct.    		Basis SegmentResolved Basis Acct
    6789-xx-222116789-11-2225000-xx-000115000-11-000
     226789-22-222 225000-22-000
     336789-33-222 335000-33-000
    9876-xx-222119876-11-2225001-xx-000115001-11-000
     22no account 22no account
     33no account 33no account
    555-xx-222115555-11-2225002-xx-000
    5003-xx-000    		115002-11-000
    5003-11-000
     22no account 22no account
    no account
     335555-33-222 335002-33-000
    no account
  • Step 4 Determine Source Amounts. The balances from the three resolved source accounts are multiplied by the source Percentage to Allocate to result in each account’s Source Amount, which is limited by the Allocation Limit, if one is specified. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-00-222 3000.00 x 100.00% (no limit) 3000.00
    2345-00-222 5000.00 x 100.00% (no limit) 5000.00
    3456-00-222 10,000.00 x 100.00% (no limit) 10,000.00
      Distribution Total 18,000.00
  • Step 5 Determine the Allocation Basis Percentages. The Cumulative Allocation Basis Total is determined by adding together the balances in the seven allocation basis accounts (16,000.00). The Allocation Percentage is then determined for each of the six recipient accounts by dividing the balance in its assigned Allocation Basis by the Cumulative Allocation Basis Total. (Note that for the fifth recipient account, 5555-11-222, the balance in both basis accounts added together is divided by the Cumulative Allocation Basis Total.)
    Cumulative Alloc. Basis Total Recipient Allocation Percentage
    Alloc. Basis AccountAlloc. Basis Amount Recipient Acct.Allocation Percent CalculationAlloc. Percentage
    5000-11-0002000.00 6789-11-2222000.00 / 16,000.0012.50
    5000-22-0004000.00 6789-22-2224000.00 / 16,000.0025.00
    5000-33-0003000.00 6789-33-2223000.00 / 16,000.0018.75
    5001-11-0001000.00 9876-11-2221000.00 / 16,000.006.25
    5002-11-0002000.00 5555-11-222(2000.00 + 1000.00) / 16,000.0018.75
    5003-11-0001000.00    
    5002-33-0003000.00 5555-33-2223000.00 / 16,000.0018.75
    Total16,000.00    
  • Step 6 Calculate Distribution amounts. The Distribution Amount for each Recipient Account is then determined by multiplying the Allocation Percentage for that account by the Distribution Total.

    Because the allocation Distribution setting is Full, the sum of the calculated allocations Accumulated Distribution Total (ADT) must equal the Distribution Total, which it does in this example.

    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.0018,000.006789-11-22218,000.00 x 12.50%2250.002250.00
    2250.0015,750.006789-22-22218,000.00 x 25.00%4500.006750.00
    6750.0011,250.006789-33-22218,000.00 x 18.75%3375.0010,125.00
    10,125.007875.009876-11-22218,000.00 x 6.25%1125.0011,250.00
    11,250.006750.005555-11-22218,000.00 x 18.75%3375.0014,625.00
    14,625.003375.005555-33-22218,000.00 x 18.75%3375.0018,000.00

    The Source Adjustment Percentage is calculated to be (18,000.00/18,000.00) = 100.00%.

  • Step 7 Create Reversing Source GL Transactions. GL transactions are created for each source account for its Source Amount multiplied by the Source Adjustment Percentage (100.00%) in the GL Journal or in a temporary table as specified in the allocation group.
    • Source Acct Debit Credit
    1234-00-222   3000.00
    2345-00-222   5000.00
    3456-00-222   10,000.00
        18,000.00
  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit
    6789-11-2222250.00 
    6789-22-2224500.00 
    6789-33-2223375.00 
    9876-11-2221125.00 
    5555-11-2223375.00 
    5555-33-2223375.00 
     18,000.00 

When the recipients for the allocation have a type of Segment, the user specifies an account segment. If the user then chooses a Weighted or Average Balance method, he or she creates a list of accounts masked for the chosen segment that will form the list of recipients for each individual recipient segment defined. The resulting group of recipient and allocation basis accounts is resolved at runtime and is based on these values.

Description: 006 tabspacingnotable Effective Date: tabspacingnotable Expiration Date:

Type/Segment Number: 2 (Segment, second segment (DEP))

Distribution: Full

Source Segments:

Source Segment (Segment ID) Offset Segment (Offset ID) (Percentage) (Limit)
00      

Source Accounts:

Acct Number (Account ID) Offset Account (Offset ID) Pct to Allocate (Percent) Alloc. Limit (Limit)
1234-xx-222   100.00 0
2345-xx-222   100.00 0
3456-xx-222   100.00 0

An Allocation Limit of 0 means no limit will be applied when processing the allocations.

Type/Segment Number: 2 (Segment, second segment (DEP))

Allocation Basis Method: Average Balance

Recipient Segments:

Recipient Segment (Segment ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Segment (Basis ID)
11 NA   11
22 NA   22
33 NA   33

Recipient Accounts:

Acct Number (Account ID) Fixed Pct/Amt (Type) Fixed Pct/Amt (Amount) Basis Accts (Basis ID)
9876-xx-222     5001-xx-000

Example balances:

Source Acct Number Starting Balance Allocation Entries Ending Balance
1234-00-222 3000.00 -3000.00 .00
2345-00-222 5000.00 -5000.00 .00
3456-00-222 10,000.00 -10,000.00 .00
Recipient Acct Number Starting Balance Allocation Entries Ending Balance
9876-11-222 .00 13,968.00 13,968.00
9876-22-222 .00 2210.00 2210.00
9876-33-222 .00 1821.60 1821.60
Basis Acct Number Starting Balance Allocation Entries Ending Balance
5001-11-000      
5001-22-000      
5001-33-000      
Total 18,000.00 0.00 18,000.00

Chosen beginning period/year: 01/2016 tabspacingnotable Chosen ending period/year: 12/2016

  • Step 1 Resolve source account list. Source accounts 1234-xx-222, 2345-xx-222, and 3456-xx-222 for segment 00 resolves to 1234-00-222, 2345-00-222, and 3456-00-222.
  • Step 2 Resolve recipient account list. Recipient account 9876-xx-222 for segments 11, 22, and 33 resolves as 9876-11-222, 9876-22-222, and 9876-33-222.
    Recipient AcctRecipient SegmentResolved Recip Acct
    9876-xx-222119876-11-222
     229876-22-222
     339876-33-222
  • Step 3 Resolve recipient basis account lists. Allocation basis accounts are defined for each account in the recipient list and masked with each recipient segment’s basis segment in the same fashion as the recipient account list. Here is the resulting recipient accounts and their basis accounts:
    Recipient AcctRecipient SegmentResolved Recip Acct
    Basis Acct.    		Basis SegmentResolved Basis Acct
    9876-xx-222119876-11-2225001-xx-000115001-11-000
     229876-22-222 225001-22-000
     339876-33-222 335001-33-000
  • Step 4 Determine Source Amounts. The balances from the three resolved source accounts are multiplied by the source Percentage to Allocate to result in each account’s Source Amount, which is limited by the Allocation Limit, if one is specified. These are then added together to determine the Distribution Total.
    • Source Acct Calculation Source Amount
    1234-00-222 3000.00 x 100.00% (no limit) 3000.00
    2345-00-222 5000.00 x 100.00% (no limit) 5000.00
    3456-00-222 10,000.00 x 100.00% (no limit) 10,000.00
      Distribution Total 18,000.00
  • Step 5 Determine the Allocation Basis Percentages.The Allocation Basis Amount for each basis account is determined using the Average Balance calculation defined above:
    1. Calculate the starting date as the first day of the beginning period/year (01/2016 = 01/01/2016) and the ending date as the last date of the ending year/period (12/2016 = 12/31/2016).
    2. Calculate the beginning balance for the account on the beginning date (the ending balance of the previous period/year). For account 5001-11-000, the beginning balance is $10,800.00.
    3. List all of the transaction dates between the starting and ending dates and the resulting account balance after each transaction.
      1. Capture all transactions within the beginning and ending fiscal periods.
      2. Realign the transaction dates to more closely map to the transaction period/year. Entries with transaction dates prior to the beginning of the transaction fiscal period/year should use the beginning date of the transaction period. Entries with transaction dates after the end of the transaction fiscal period/year should use the ending date of the transaction period. This resolve the potential mismatch between transaction dates and fiscal periods.
      3. Include a placeholder for generated allocation transactions when the transaction date used for them will be within the period range.
      4. Aggregate a summary by account, date, fiscal year and period.
    4. Calculate the number of days from the starting date specified to the first transaction (inclusive of the starting date) and then multiply that number by the beginning balance to get a weighted total for those days.
    5. Repeat this process for each of the transaction dates in the list, culminating with the time period from the last transaction date in the list to the ending date specified.
      Account No. 5001-11-000DateTransaction AmountStarting or Resulting BalanceNumber of Days until Next TransactionWeighted Total
      Begin Date:1/1/2016 10,800.0028302,400.00
      Transaction Dates1/29/2016500.0011,300.0028316,400.00
      2/26/2016500.0011,800.0032377,600.00
      3/29/2016500.0012,300.0030369,000.00
      4/28/2016500.0012,800.0029371,200.00
      5/27/2016500.0013,300.0033438,900.00
      6/29/2016500.0013,800.0030414,000.00
      7/29/2016500.0014,300.0031443,300.00
      8/29/2016500.0014,800.0031458,800.00
      9/29/2016500.0015,300.0031474,300.00
      10/30/2016500.0015,800.0030474,000.00
      11/29/2016500.0016,300.0030489,000.00
      12/29/2016500.0016,800.00350,400.00
      End Date:12/31/2016    
      Totals: 6000.0016,800.003664,979,300.00
       Summed Weighted Totals/Total Days13,604.64
    6. Sum the weighted totals for each transaction time period ($4,979,300.00)
    7. Divide the sum of the weighted totals by the total number of days from the beginning date to the ending date specified for the allocation to arrive at the Average Balance for the associated Basis Account (4,979,300.00 / 366 = 13,604.64).

    Repeat this process for the remaining allocation basis accounts:

    Account No. 5001-22-000 Date Transaction Amount Starting or Resulting Balance Number of Days until Next Transaction Weighted Total
    Begin Date: 1/1/2016   822.00 20 16,440.00
    Transaction Dates 1/21/2016 225.00 1047.00 32 33,504.00
    2/22/2016 240.00 1287.00 31 39,897.00
    3/24/2016 230.00 1517.00 29 43,993.00
    4/22/2016 220.00 1737.00 30 52,110.00
    5/22/2016 235.00 1972.00 35 69,020.00
    6/26/2016 220.00 2192.00 26 56,992.00
    7/22/2016 245.00 2437.00 32 77,984.00
    8/23/2016 215.00 2652.00 31 82,212.00
    9/23/2016 240.00 2892.00 27 78,084.00
    10/20/2016 220.00 3112.00 36 112,032.00
    11/25/2016 225.00 3337.00 26 86,762.00
    12/21/2016 235.00 3572.00 11 39,292.00
    End Date: 12/31/2016        
    Totals:   2750.00 3572.00 366 788,322.00
      Summed Weighted Totals/Total Days 2153.89

     

    Account No. 5001-33-000 Date Transaction Amount Starting or Resulting Balance Number of Days until Next Transaction Weighted Total
    Begin Date: 1/1/2016   1050.00 79 82,950.00
    Transaction Dates 3/20/2016 450.00 1500.00 94 141,000.00
    6/22/2016 450.00 1950.00 95 185,250.00
    9/25/2016 450.00 2400.00 87 208,800.00
    12/21/2016 450.00 2850.00 11 31,350.00
    End Date: 12/31/2016        
    Totals:   6000.00 2850.00 366 649,350.00
      Summed Weighted Totals/Total Days 1774.18

    The Cumulative Allocation Basis Total is then determined by adding together the balances in the three allocation basis accounts (13,604.64 + 2153.89 + 1774.18 = 17,532.71). The Allocation Percentage is then determined for each of the recipient accounts by dividing its assigned Allocation Basis account’s Allocation Basis Amount by the Cumulative Allocation Basis Total.

    Cumulative Alloc. Basis Total   Recipient Allocation Percentage
    Alloc. Basis Account Alloc. Basis Amount   Recipient Acct. Allocation Percent Calculation Alloc. Percentage
    5001-11-000 13,604.64   9876-11-222 13,604.64 / 17,532.71 77.60
    5001-22-000 2153.89   9876-22-222 2153.89 / 17,532.71 12.28
    5001-33-000 1774.18   9876-33-222 1774.18 / 17,532.71 10.12
    Total 17,532.71        
  • Step 6 Calculate Distribution amounts. The Distribution Amount for each Recipient Account is then determined by multiplying the Allocation Percentage for that account by the Distribution Total.

    Because the allocation Distribution setting is Full, the sum of the calculated allocations Accumulated Distribution Total (ADT) must equal the Distribution Total, which it does in this example.

    Start ADTRemaining Dist. AmtRecipient AcctCalculated Dist. AmtRecipient Dist AmtNew ADT
    0.0018,000.009876-11-22218,000.00 x 77.60%13,968.0013,368.00
    13,368.004032.009876-22-22218,000.00 x 12.28%2210.4016,178.40
    16,178.401821.609876-33-22218,000.00 x 10.12%1821.6018,000.00

    The Source Adjustment Percentage is calculated to be (18,000.00/18,000.00) = 100.00%.

  • Step 7 Create Reversing Source GL Transactions. GL transactions are created for each source account for its Source Amount multiplied by the Source Adjustment Percentage (100.00%) in the GL Journal or in a temporary table as specified in the allocation group.
    • Source Acct Debit Credit
    1234-00-222   3000.00
    2345-00-222   5000.00
    3456-00-222   10,000.00
        18,000.00
  • Step 8 Create recipient allocation transactions. GL transactions are created to each recipient account for its Distribution Amount in the GL Journal or in a temporary table as specified in the allocation group.
    Recipient AcctDebitCredit
    9876-11-22213,968.00 
    9876-22-2222210.40 
    9876-33-2221821.60 
     18,000.00 

Back to top of page