Account allocation example - fixed percentages

If you already know the percentages to use as an allocation basis but want to leverage the dynamic capabilities of Dynamic (Account) Allocations, use a statistical account to determine the percentage split.

To use fixed percentages in a dynamic allocation, you:

• Create a fixed percentage statistical account.
• Record the fixed percentages.
• Use the statistical account as the Basis for your account allocation.
• Ensure that the time frame of the basis aligns with the location of the fixed percentage entries.

Define fixed percentages

Before you define an allocation definition, you must first define the fixed percentages to use. Create the following:

1. A statistical account for use with an allocation
2. An account group for the created statistical account
3. An entry in the created statistical account containing the fixed percentages to use

Create a statistical account for use with an allocation:

1. Go to General Ledger > All > Accounts and select Add (circle) next to Statistical accounts.

2. Set the following required settings for the statistical account that the allocation will reference, and then select Save.

Field	Description
Account number	An Account number is required. Intacct recommends using a naming convention when creating a new statistical account. For example, you could use the account number ST01 if this is your first statistical account.
Title	A Title is required. Intacct recommends using a naming convention when creating a new statistical account. For example, you could use the account title of Fixed Percentage.
Report type	Select For the Period.
Status	Select Active.

Assign the statistical account to an account group:

1. Go to General Ledger > All > Financial report structures and select Add (circle) next to Account groupsSet the following required settings and select Save.

Field	Description
Name	Intacct recommends using a naming convention when creating a new account group. For example, you could use the name Stat Basis - Fixed.
Structure type	Select Statistical Account.
Calculation method	Select For period.
Add statistical accounts	Pick the GL statistical account that you want in this account group. For the purposes of fixed percentage use with account allocations, you're making a group with only 1 member. Select the From account down arrow and select an account from the list that appears. For this example, select the statistical account you created above: ST01 --Fixed Percentage. Select Add.

Add an entry with fixed percentages:

Before adding an entry, a Statistical Journal must already exist in Intacct.

Entry lines are used to designate the percent amounts to use in an allocation definition. The simplest way to ensure that your ratios are correct is to make the total amount of all entries equal 100, or 1.

For example, if you want to split your allocation evenly across 2 departments, you could enter 2 lines each with a 50 in the Increase column. This totals 100. Or, you could make the same entries but enter .5 for each increase. This totals 1. Both styles are equivalent to a fixed 50 percentage amount for each line.

1. Go to General Ledger > All, and select Add (circle) next to Statistical journal entries.
2. Set the following and then select Submit.

Field	Description
Journal	Select the statistical journal in which the entry will be posted.
Date	Accept the current date or enter a different one. This is the posting date for the entry. The date of your entry is important to note for use with an account allocation. When setting the Basis time period in an account allocation, select a period that includes the date of this entry.
Description	Enter a description of the transaction.
Entries	Choose the Statistical account to which the entry will apply. Select the statistical account that you created above, for example: ST01--Fixed Percentages. Enter the amount to Increase. Entry lines are where you designate the percent amounts you want to use in an allocation definition. The total amount of all entries must be either 100, or 1. For example, if you want to split your allocation evenly across 2 departments, you could enter 2 lines each with a 50 in the Increased column. This equal 100. Or, you could make the same entries but out in .5 for each increase. This equals 1. To add another line item, select Add (circle) to the right of the line item. Add as many lines as need total 100 or 1.

Set up an account allocation definition

When setting up an account allocation definition to use fixed percentages, use the statistical account you created.

1. Go to General Ledger > Setup > Allocations, and select Add (circle) next to Account allocation definitions.
2. Enter an Allocation ID and Description, and complete the Rationale section.
3. Select how dimensions will factor into your allocation calculations in the Dimensions treatment section.
4. Define where to get the amount to allocate in the Source pool section.
5. Define how your allocation is distributed in the Basis section. This is where you designate the use of your fixed percentages, see Use fixed percentages as the Basis for your allocation.
6. Select where to record the allocated amounts and the reversal in the Target entry section.
7. Select Save.

Use fixed percentages as the Basis for your allocation

Set the following fields in the Basis section to use fixed percentages.

Field	Description
Allocation method	The allocation method determines how the source pool is distributed in the allocated entry. When using fixed percentages, set the allocation method to: Dynamic - relative account statistical In this case, the Basis uses the fixed percentages in your statistical account entry as the basis for the calculation. Dimensions set as Allocation Focus are the only dimensions considered when calculating the Basis. For the allocation to function correctly, be sure that your statistical account entries contain dimensions you have set as the Allocation Focus.
Account group	Select the statistical account group that you created above, for example Fixed Percentage Statistical Account.
Basis time period	When setting the Basis time period, consider how often your fixed percentages update. For example, you have new rates only once a year. Therefore, select Current Year so that the fixed percentage entry in the statistical account is always available for use in this allocation for the year. It's important that the statistical account entry with the fixed percentages is captured for use in the Basis. Select the relevant time period based on when your statistical account entry was posted.