Create an allocation definition

This is the name of the allocation that's seen in the account allocation definitions list. Intacct recommends reviewing the name and ID best practices before creating an account allocation definition.

This ID cannot be edited after you save the account allocation definition. If you want the same allocation definition with a different ID, you can duplicate the existing definition and save it with a new ID. After the new definition is saved, you can delete the previous allocation definition if it's no longer needed.

The Allocation ID is limited to 20 characters.

Enter a brief description for your account allocation definition.

Select a status for your account allocation definition.

• Active: the allocation definition is available to be generated.
• Inactive: the allocation definition is unavailable to be generated.

Use this field to attach documents that explain your allocation reasoning and methodology.

Use this field to explain the reasoning behind the configuration of the allocation definition. Be specific so there’s an explanation of why the allocation has been set up the way it is.

There’s no character limit in this field.

• Enable Across entities, available only when a company has more than 1 entity.

• Requires an Entity filter.
• Generates entries using the source entity’s base currency as the transaction currency except when the source is a statistical account.

The source entity used to generate the inter-entity journal is based on the source entity/location reflected in the source pool of the allocation definition. For example, if you entered a Location as the source entity/location, the inter-entity "source entity" will automatically pull from the entity/location hierarchy

• If the allocation uses the "Relative Account Balance–Financial" method: Make sure that the Basis is filtered for same-currency entities.
• If the allocation uses "Relative Account Balance–Statistical": There's no entity filter requirement.

To allocate cross entities, first ensure that Enable inter-entity transactions is enabled in Multi-Entity Management.

• Include exchange rate type.

Select the source of your allocation.

The account group that you select determines the source entity. The source entity is the entity associated with the account group.

Only the accounts selected in the account group are considered by the allocation. If you need dimension filters added to the selected accounts, they must be defined explicitly in the Dimensions filters section below.

You can select an account group, statistical group, or account group of groups. Computational groups aren’t supported.

To allocate a single account, create an account group that has only one account in the group. This will allow you to select a single account: essentially selecting a group of one.

If the account group is a statistical group, alternate books aren’t used.

This value is the percent of the source pool to be allocated and will be applied during calculation to the source amount.

Intacct supports up to 12 decimal points in this field, and any positive value up to 999.999999999999%. For example: 50.009%

This field displays the base currency used in the entity where the allocation is processed and is read-only.

If you prefer to use just the Reporting book, leave this field blank.

Compliance, tax, and user-defined books are available for selection. You can select more than one book for use here.

1. Select Select.
2. Select the alternate books to use and select the arrow to move the book from the Available items to Selected items.
3. Select Done.

Using the Reporting book and any alternate books allows you to factor in previous allocations into future allocations without having to move your previously generated allocations into the Reporting book. For example, you could record allocations in a specific allocation book on an ongoing basis while still factoring in the impact on future allocations using book stacking with an Accrual reporting book. This saves you time when moving through the allocation process.

Alternate books aren’t used for statistical accounts.

Select where amounts will be taken from.

• Main reporting book and alternate books: All selected alternate books and the Reporting book are used for the basis calculation.
• Alternate books only: Only selected alternate books are used for basis calculation.

The source pool time period is the default time interval for the allocation that you'll generate. When you generate the allocation, the As of Date field looks for the source pool time period to determine the actual dates for the allocation source activity.

For example, suppose you set the source pool time period for Prior Month, and when generating the allocation you set the As of Date to September 1st 2020. In this case, the allocation calculations will be based on the activity in the source pool during August 2020.

All standard and custom periods are available for selection, except for the following:

• Inception to Date:
  This time period is only available when the Project dimension is set to Allocation focus and the reporting period is enabled.
• Inception to Current Month:
  This time period is only available when the Project dimension is set to Allocation focus and the reporting period is enabled.

You can also generate allocations that require shorter time periods than the ones provided here. For examples of how to do this, see Allocations with shorter time periods.

• Activity delta: When selected, the Activity delta includes another layer of validation for your allocation. For example, you create an allocation that needs to be run more often than once a period (payroll, for example). Enabling the Activity delta tells Intacct to validate that your account setup is designed to clear the source amounts with each allocation generation.

  This is accomplished as follows:

  • By making sure that the accounts selected for your source pool are used as the reversing source pool selection.

  • If an alternate specific account is used for the reversal, it's included in the source pool account group so that it removes any prior allocation activity.

  Allocated entries must be reflected in the source books to correctly consider the prior allocation impact.

• Auto-reverse prior post: When selected, Intacct checks for a previously generated allocation in the same source period. If a previously generated allocation is found, it's reversed as the first step when the new allocation is generated.

  This reversal occurs on the same posting date as the new allocation. The reversal resets the allocation amount for the new allocation to consider the source amounts as though the prior allocation didn't take place. The result is a new, more accurate allocation that uses the latest basis information to allocate for the entire period. For more information, see the Auto-reverse prior post example below.

You cannot change your allocation definition true-up selection to auto-reserve prior post if you have already generated allocations with this definition. This selection must be made from the beginning of the allocation.

• None: When selected, no true-up action is taken.

Dimension filters function much like report filters, allowing you to narrow the scope of your allocation to the precise dimension details that you want.

In the Dimension treatment, you told Intacct how you want specific dimensions to be treated during calculation. In the source pool dimension filters, you're instructing Intacct to consider all values, or to use specific values when dynamically pulling the source amounts to be allocated.

If you want to use a dimension that includes its child records, a dimension group must be created and selected here.

For example, in companies with more than one entity, if you have Entity A that has Location 1 and 2, when you select Entity A as a dimension here, the account allocation only pulls what is in Entity A. It doesn’t pull Entity A and Locations 1 and 2. If you want both Entity A and Locations 1 and 2, create a dimension group that includes all three records. For more information, see .

The allocation method determines how the source pool is distributed in the allocated entry.

• Dynamic - relative account financial
  Calculates the applied percentage split by analyzing the proportion of the allocation focus dimensions within the basis account group after any basis dimension filters are applied.
• Dynamic - relative account statistical
  Uses the proportions of the statistical account amounts defined in the statistical account to derive allocation percentages.
  Statistical accounts are used to track nonfinancial data, such as labor hours, number of members, or even square footage. Tracking key metrics in this type of account allows you to split the allocation based on the information in a statistical account. For example, you could track labor hours in a statistical account. You can then create an allocation for a fringe expense based on the labor hours tracked in the statistical account. Then have the allocation basis use the labor hours per project as the basis for the allocation split.

Dimensions set as Allocation focus are the only dimensions considered when deriving the basis portion of the allocation distribution. When the allocation is generated, the relative account selection provides a balance analysis by looking at the basis period with the As of Date. This is similar to running a report to look up amounts. The resulting values return 1 line for each unique dimension combination found. The values are then used to calculate the percentage splits.

Select the account group to base your allocation split on.

Only the accounts selected in the account group are considered by the allocation. If you need dimension filters added to the selected accounts, they must be defined explicitly in the Dimensions filters section below.

You can select an account group, statistical group, or account group of groups. Computational groups aren’t supported.

To allocate a single account, create an account group that has only one account in the group. This will allow you to select a single account: essentially selecting a group of one.

If the account group is a statistical group, alternate books aren’t used.

This field determines how the amounts within the basis accounts are interpreted to derive amounts for the allocation split. Select one of the following:

• Activity
• Ending Balance

For balance sheet accounts, you can pick Activity or Ending Balances.

Ending Balance examples:

• For the allocation method relative account financial, you can allocate based on balances reflected in shares of asset ownership such as investments.
• For the allocation method relative account statistical, if head count is configured with Report type cumulative balance, you can now allocate using ending balance headcount figures.

If you don’t use Global Consolidations, this selection is made automatically for you, based on the accounting method was chosen when the GL was set up. Your reporting book will either be Accrual or Cash.

If you prefer to use just the Reporting book, leave this field blank.

Compliance, tax, and user-defined books are available for selection. You can select more than one book for use here.

1. Select Select.
2. Select the alternate books to use and select the arrow to move the book from the Available items to Selected items.
3. Select Done.

Using the Reporting book and any alternate books allows you to factor in previous allocations into future allocations without having to move your previously generated allocations into the Reporting book. For example, you could record allocations in a specific allocation book on an ongoing basis while still factoring in the impact on future allocations using book stacking with an Accrual reporting book. This saves you time when moving through the allocation process.

Alternate books aren’t used for statistical accounts.

Select where amounts will be taken from.

• Main reporting book and alternate books: All selected alternate books and the Reporting book are used for the basis calculation.
• Alternate books only: Only selected alternate books are used for basis calculation.

You can use the same time period as the source pool, or you can select a different time period for your basis. This field determines what time period is used to get the basis information. Much like running a report to get information, this field determines what basis information is retrieved using time as the determining factor.

All standard and custom periods are available for selection, except for the following:

• Inception to Date:
  This time period is only available when the Project dimension is set to Allocation focus and the reporting period is enabled.
• Inception to Current Month:
  This time period is only available when the Project dimension is set to Allocation focus and the reporting period is enabled.

When checked, the regular balance of the accounts in the selected account group is reviewed, and any negative balances are not considered in the basis calculation.

If left unchecked, a negative balance in the selected account group can cause amounts to be "taken away" rather than "given" during the allocation.

In the basis dimension filters, you're telling Intacct to consider all values, or to use specific values in dynamically pulling the basis amounts to consider when deriving the basis splits.

Dimension filters function much like report filters, allowing you to narrow the scope of your allocation to the precise dimension details that you want.

In the Dimension Treatment section above, you told Intacct how you want specific dimensions to be handled during the allocation calculation step. When a dimension is set to Not considered, this means it's not part of the calculations of the basis split. However, it can still be used to narrow the scope of the basis amounts used to derive the split.

For example:

• You set the Department dimension to Allocation focus and the Projects dimension to Not considered in the Dimension treatment.

• You can still use the Project dimension to narrow the focus of the basis amounts used in the calculation of the split.

For example, in the basis you could filter for Project X to narrow the scope of the basis for only departments who have transactions associated with Project X.

If you want to use a dimension that includes its child records, a dimension group must be created and selected here.

For example, in companies with more than one entity, if you have Entity A that has Location 1 and 2, when you select Entity A as a dimension here, the account allocation only pulls what is in Entity A. It doesn’t pull Entity A and Locations 1 and 2. If you want both Entity A and Locations 1 and 2, create a dimension group that includes all three records. For more information, see .

If you don’t use Global Consolidations, this selection is made automatically for you, based on the accounting method was chosen when the GL was set up. Your reporting book will either be Accrual or Cash.

Select the book where the allocated entry will be generated.

The selection of the Alternate book determines the options available for selection in this field.

Select the journal where you want your allocation to be recorded when generated.

• If a journal is selected that does not require approvals, the allocation generation will post the entry.
• If a journal is selected that requires approvals, then a review before post is available. Due to the size of allocations, it's often easier to review the results by looking at the impact on a financial statement rather than at the transactions.

The allocation destination entry will use the dimension values derived in the basis split. This is a combination of the basis amounts with the amounts of the dimensions set to Preserved values nested proportionally.

Dimensions treated as Not considered will not contain a value on the allocation destination entry unless a dimension override is used to provide a single value to all lines.

This is the target account for the allocated entry.

Only appears for companies with more than 1 entity and if the allocation crosses entities. Currency exchange information is required. Intacct uses the GL Posting Date to determine the appropriate exchange rate for the transaction, as long as the "as of date" is on or before the current date.

Although the same transaction currency is used for all lines in the transaction, lines can have different base currencies. Base currency is defined per-entity. The source entity base currency determines the transaction.

You can apply dimension values to all lines of your allocation entry. Do this by adding a dimension with a value selected in the Dimension overrides table. When you add a dimension here, all lines in the reversing portion of the generated entry include the dimension value you selected (like a transaction default).

Dimension overrides can independently be applied to the Target (the allocated portion of the entry) and the Reversing Source Pool entry.

Overrides can be applied within the Target to any dimension in the Reversal section, regardless of whether part of Allocation Focus or Preserve. The override value can be applied within the Target if Preserve is used. This allows an allocation focus dimension to have a targeted specified value applied while the reversal still occurs from the source.

For example, if you want all lines of the reversing portion of the entry to include the location HQ, and you set Location to Not Considered in the Dimension treatment section. You would then enter the Reversing Source Pool override for the Location dimension in the Target and set the value to HQ. After the allocation is generated, any resulting lines of the reversing portion of the entry will include HQ as the location.

When Project Billing is enabled in Configure Projects for General Ledger and the journal you use to record the allocation, you can flag lines in the allocation Target as billable.

When Project Billing is enabled within the Projects configuration page for General Ledger and the journal you use to record the allocation, you can flag lines in the allocation Target as billable.

This allows allocated amounts, such as overhead, to be billed to clients as you Generate AR sales invoices.

The reversing source pool entry will use the original dimension values on the source balances for any dimensions treated with Allocation focus and Preserve values.

Dimensions treated as Not considered will not contain a value on the reversing source pool entry unless a dimension override is used to provide a single value to all lines.

When checked, the reversing source pool uses the same accounts as the source pool account group you selected. When you select Use source account, only accounts that include dimensions set to Allocation focus, Preserve values, or both will be reversed. Dimensions set in the Dimensions Treatment section to Not considered are ignored both by the source and basis calculations, and any reversing actions that take place in the Target entry.

When left unchecked, you can select a reversing source pool account.

This is the target reversing source pool account that you want Intacct to use for the reversal portion of the target entry.

You can apply dimension values to all lines of your allocation entry. Do this by adding a dimension with a value selected in the Dimension overrides table. When you add a dimension here, all lines in the reversing portion of the generated entry include the dimension value you selected (like a transaction default).

Dimension overrides can independently be applied to the Target (the allocated portion of the entry) and the Reversing Source Pool entry.

Overrides can be applied within the Target to any dimension in the Reversal section, regardless of whether part of Allocation Focus or Preserve. The override value can be applied within the Target if Preserve is used. This allows an allocation focus dimension to have a targeted specified value applied while the reversal still occurs from the source.

For example, if you want all lines of the reversing portion of the entry to include the location HQ, and you set Location to Not Considered in the Dimension treatment section. You would then enter the Reversing Source Pool override for the Location dimension in the Target and set the value to HQ. After the allocation is generated, any resulting lines of the reversing portion of the entry will include HQ as the location.