About transaction allocations

Transaction allocations provide a way to distribute transaction amounts across multiple dimensions—such as departments, locations, projects, or classes—automatically. Automatically allocating amounts based on a preset definition saves time and increase accuracy for routine transactions, such as rent allocated across locations or utilities allocated across departments.

For example, an organization distributes an expense for janitorial services across 3 locations. The transaction allocation is set up to reflect the occupancy percentage for each location. When you select this allocation on an AP supplier invoice line item, Intacct automatically divides the amount across the locations according to the percentages saved in the transaction allocation definition.

You can set up 3 kinds of transaction allocations:

  • Percentage

  • Exact amount—absolute

  • Fixed amount with over/under logic

Each allocation method takes the transaction entry line amount and spreads it across the dimensions specified in the transaction allocation definition. The allocation can be kept as is or customized during transaction entry. For dimensions not specified in the transaction allocation definition, you can still assign a value during transaction entry.

This transaction allocation distributes costs across departments based on a set percentage.

A $1,000 transaction is distributed as 50% to department A, 25% to department B, and 25% to department C. Department A gets $500 and departments B and C each get $250.

The following image shows how to set up this transaction allocation definition.

Entries section on the Transaction allocation information page. The allocation split is 50% to the Development department, 25% to the Campaigns department, and 25% to the Graphics department.

  • 50% is allocated to the Development department.

  • 25% is allocated to the Campaigns department.

  • 25% is allocated to the Graphics department.

The next image shows how a $1,000 transaction is allocated when you select the allocation when entering a bill.

The Allocation splits section of the Bills page for a $1,000 transaction. The $1,000 is split up as $500 allocated to the Development department, $250 to Campaigns, and $250 to Graphics.

  • $500 is allocated to the Development department.

  • $250 is allocated to the Campaigns department.

  • $250 is allocated to the Graphics department.

This transaction allocation distributes a predefined dollar amount across departments.

A $1,000 transaction is allocated as $600 to department A, $200 to department B, and $200 to department C.

The following image shows how to set up this transaction allocation.

The Entries section of the Transaction allocation information page. $600 is allocated to the Development department, $200 to the Graphics department, and $200 to the Campaigns department.

  • $600 is allocated to the Development department.

  • $200 is allocated to the Graphics department.

  • $200 is allocated to the Campaigns department.

To use this type of allocation, the total amount specified in the transaction allocation definition must be the same amount entered for the transaction entry line.

The next image shows how $1,000 is allocated when you select the allocation when entering a bill.

The Allocation splits section on the Bill page. $600 is allocated to the Development department, $200 to the Graphics department, and $200 to the Campaigns department.

  • $600 is allocated to the Development department.

  • $200 is allocated to the Graphics department.

  • $200 is allocated to the Campaigns department.

This transaction allocation distributes a predefined dollar amount across departments, and any amount that's left over is distributed based on a percentage.

A $1,000 transaction is distributed as $300 each to departments A, B, and C for a total of $900. Any amount over $900 is distributed as 60% to department D and 40% to department E.

The following image shows how to set up this transaction allocation.

  • The Development, Campaigns, and Graphics departments each get $300 for a total of $900.

  • For any remaining amount that exceeds $900:
    • 60% is distributed to the Sales department.
    • 40% is distributed to the Marketing department.

The next image shows how $1,000 is allocated when you select the allocation when entering a bill.

The Allocations splits section of the Bill page for a $1,000 transaction. The Development, Campaigns, and Graphics departments each get $300 for a total of $900. $60 is allocated to the Sales department and $40 to the marketing department.

  • $300 is allocated to each of the Development, Campaigns, and Graphics departments for a total of $900.

  • $60 is allocated to the Sales department.

  • $40 is allocated to the Marketing department.

If you enter less than the amount specified in the definition, the amount entered in the transaction is distributed based on how the dimensions are ordered in the definition.

Using this example, a $500 transaction entry line is allocated as $300 to the Development department and $200 to Campaigns.

Transaction allocations can be applied to the following types of transactions

  • Accounts Payable: AP supplier invoices and recurring AP supplier invoices
  • Accounts Receivable: AR sales invoices and recurring AR sales invoices
  • General Ledger: Journal entries and recurring journal entries
  • Purchasing: Transactions with the appropriate transaction definitions

If you don't see the option to select an allocation for an entry line, ask your Intacct administrator to enable the feature.

Any supporting rationale can be attached to the transaction allocation definition to explain why an allocation was set up in a particular way.

Transaction allocations are intended for use during transaction entry when you know the parameters up front. The predefined split is not based on dynamic calculations.

Subscription

Company

Regional availability

All regions

User type Business user with Admin privileges
Permissions Transaction allocations: List, View, Add, Edit, Delete
Restrictions
  • Other user types can only view transaction allocations.
  • The Taxes application does not support transaction allocations.

Available dimensions

All standard and user-defined dimensions are available for use with transaction allocations. You can allocate to any dimension that's enabled in the General Ledger, Accounts Payable, Accounts Receivable, and Purchasing configuration pages.

Allocations must be compatible with the transaction entry rules for each application area. For example, you cannot allocate an AP supplier invoice to multiple suppliers.

Transaction allocation restrictions

Although each transaction allocation you create is available anywhere allocations are available for use, Intacct prevents you from applying transaction allocations that violate certain transaction rules:

  • The dimension used by the transaction allocation must be turned on for the corresponding application.
    For example, the Project dimension must be turned on in Accounts Payable Configuration to be able to allocate an AP supplier invoice across projects.
  • The transaction allocation must be compatible with the transaction entry rules for the application area.
    For example, you cannot allocate an AR sales invoice to more than 1 customer.
  • When assigning the transaction allocation value, there’s a maximum allowable value of eight total characters. This includes those characters before and after the decimal point. The number of characters after the decimal point is relative to the number of pre-decimal digits. For example if the allocation is set before the decimal to 15, you could include a decimal.
  • If you use revenue recognition, you cannot allocate line items for which you’re deferring revenue.

Additional restrictions for Purchasing:

  • You can only allocate line items for non-inventory items.
  • The quantity for an allocated line item needs to be 1. If a transaction has been converted from another transaction (the parent transaction), the line can only be allocated if the quantity of the line in the parent transaction is 1.
  • Only transaction allocation definitions that allocate by percentage can be applied to a line item.
  • If a transaction with allocated lines is converted to a purchasing return, the transaction definition for the return needs to be configured for transaction allocations. The return will use the same allocation.
  • Line items using conversion type of price cannot be allocated.

Additional restrictions for organizations with more than one entity:

  • You can use transaction allocations across entities only if they have the same base currency.
  • You can use transaction allocations to allocate an AP supplier invoice or AR sales invoice across entities only if the entities receiving an allocated share have access to the related customer or supplier.
    For example, you cannot allocate an AP supplier invoice to the Chicago and New York locations if the supplier is restricted to only the New York location.

Multi-entity transaction allocations

Transaction allocations are especially useful for companies with multiple entities in a domestic franchise arrangement.

For example, corporate can automatically allocate AP supplier invoices across multiple entities without manually calculating each entity's share. Or a property management company can automatically divide the monthly cost of landscape maintenance based on the square footage of each of its properties. Then, each time the landscape AP supplier invoice is paid, the appropriate portion is assigned to each entity.

In general:

  • Transaction allocations across multiple entities are available only if the entities use the same base currency.
  • If your company has entities with different base currencies, you cannot use transaction allocations across multiple entities.

Multi-entity organizations with the same base currency

For multi-entity companies that use the same base currency, you can allocate an AP supplier invoice, AR sales invoice, or journal entry across multiple entities. To do this, you must create and use the transaction allocation definition at the top level of the company.

When allocating an AP supplier invoice or AR sales invoice across entities, keep in mind that transaction allocations can be applied only if all entities in the allocation have access to the corresponding supplier or customer. Learn more about entity restrictions for customers and suppliers.

Transaction allocation definitions created at the top level of a company cannot be used at the entity level but can be duplicated at the entity level as needed.

Multi-entity organizations with different base currencies

You cannot use transaction allocations across multiple entities if the entities use different base currencies. However, you can create transaction allocation definitions that do not involve locations. For example, you can create a transaction allocation definition at the top level that distributes transaction amounts by project or department.

Transaction allocation definitions can also be created at the entity-level. At the top level, you can display entity-level transaction allocations. To display them, select the Include Private checkbox in the top level.

Multi-currency transaction allocations

While Intacct does not accommodate allocations across multiple base currencies, you can select transaction allocations in transactions that include multiple currencies. A minor adjustment is made during the transaction allocation of a foreign-currency transaction. Allocated amounts have 2 decimal places, but exchange rates have 4. This can cause the total to be slightly larger than 100%. Consequently, Sage Intacct ignores the last 2 decimal places of exchange rates when making transaction allocation calculations.