Set up transaction allocations for Purchasing transactions

To automatically distribute the amount of a Purchasing line item across multiple dimensions—such as departments, locations, projects, or classes—your organization first needs to be configured to enable dimension distribution.

About transaction allocations in Purchasing

In Purchasing, transaction allocations can only be applied to line items with non-inventory items, and the amounts can only be spread to the dimensions defined in the transaction allocation template by percentage.

For example, you can create a transaction allocation definition that distributes costs across several departments. When a user enters a line item in a transaction and selects that allocation, the amount of the expense is automatically spread across the appropriate departments in the General Ledger. The following table shows how a single line for $4,000 in rent is automatically spread across three departments based on the selected allocation:

Transaction allocation definition	Allocated amount
50% to Dept A	R2,000 to Dept A
25% to Dept B	R1,000 to Dept B
25% to Dept C	R1,000 to Dept C

To learn more about transaction allocations, which are also supported in Accounts Payable, Accounts Receivable, and the General Ledger, see Transaction allocations overview.

Set up transaction allocations in Purchasing

Several steps are needed to enable the use of transaction allocations in Purchasing. In a multi-entity organization, configure allocations at the top level first.

1. Enable transaction allocation in journal entries on the Configure General Ledger page. (Go to General Ledger > Setup tab > Configuration.)
2. Enable transaction allocation in AP supplier invoice entries on the Configure Accounts Payable page. (Go to Accounts Payable > Setup tab > Configuration.)
3. Define one or more transaction allocation definitions that allocate by percentage in the General Ledger application. (Go to General Ledger > Setup tab > Allocations and select Add (circle) next to Transaction allocations.)
   The transaction allocation definition needs to allocate by percentage for it to appear in the Allocation dropdown menu in a Purchasing transaction.

   Learn more about defining transaction allocation templates.

4. Ensure the dimensions used in the transaction allocation definitions are turned on in the Configure Purchasing page. (Go to Purchasing > Setup tab > Configuration.)
5. Configure the Purchasing transaction definitions for the transactions in which you want to allocate line-item amounts. In the Accounting section on the transaction definition page, complete the following steps:
   1. Select the Enable allocations checkbox.
   2. If subtotals is enabled, ensure that the Apportioned checkbox is not selected for any of the subtotal lines.
   3. If you have a standard company, select Location in the User overrides subsection.
   4. If you have a multi-entity company and are configuring the transaction definition at the entity level, select Location in the User overrides subsection.

   Transactions that use these transaction definitions will include an Allocation dropdown menu for each line item. The dropdown menu includes all the transaction allocations that are defined in the General Ledger application that allocate by percentage.

   If you use a workflow where 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.