Allocating transactions in AX2009

Allocating transactions in AX2009

Allocation is the process of distributing monetary amounts to one or more accounts or account/dimension combinations based on allocation rules. There are two types of allocations—fixed and variable. Fixed allocation is used to distribute specified percentages of a transaction amount to distribution accounts/dimensions.

For example, corporate advertising expenses might be shared across specific departments. Department A would get 70 percent of the advertising expense, Department B would get 20 percent, and Department C would get 10 percent.

Variable allocation is used to distribute fluctuating percentages of a transaction amount to various accounts/dimensions.

For example, you could allocate corporate advertising costs based on each department's sales in proportion to total departmental sales.

The following allocation methods are available:

· Basis

· Fixed percentage

· Fixed weight

· Spread even

Create allocation rule source information

1. Click General ledger > Setup > Posting > Ledger allocation rule.
2. Click the Source button to open the Ledger allocation rule source form.
3. Press CTRL+N to create a new source line.
4. Select to allocate from an account or from an account-dimension combination.
5. If you selected Dimension in the Field setting field, select a dimension.
6. Enter the account or dimension source criteria information to allocate from. You can use wildcards to specify ALL, a RANGE, or a LIST of accounts or dimension codes, or BLANK for a dimension.

For example, suppose that you want to allocate a utility expense, such as phone and fax costs, and the chart of accounts is set up so that a ledger account starting with 61 indicates that the account is where utilities expenses are posted. You could define the source criteria as one of the following.

• 61*
• 6100..6110
• 6100, 6110

Create allocation rule destination information

1. Click General ledger > Setup > Posting > Ledger allocation rule.

2. Click the Destination button to open the Ledger allocation rule destination form.

3. If this rule is an intercompany rule, select the company to allocate to.

4. Select the account to allocate to.

5. Select a department, cost center, and purpose dimension to allocate to.

6. Depending on the allocation method selected in the Ledger allocation rule form, enter or select the following information.

o If the allocation method is Basis, select the basis ID to associate to the destination line.

o If the allocation method is Fixed weight, enter the fixed weight to assign to each destination line.

o If the allocation method is Fixed percentage, enter the fixed percentage to assign to each destination line.

Use the Process allocation request form to create an allocation journal.

1. Click General ledger > Periodic > Process allocation request.

2. Select an allocation rule.

3. Select the date to include ledger amounts for allocation in the As of date field.

4. Select the date to post the allocation journal to the general ledger in the GL posting date field.

5. Select the action to be taken if a zero source amount is generated during the allocation process.

o Select Process to create destination distributions, where applicable.

o Select Stop to create an error to indicate that a zero source amount is selected and stop the allocation process.

6. Select to view the journal details or post the allocation results directly to the general ledger.

7. Click OK to create an allocations journal.