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Choosing an Allocation Method

You can generate journals from allocation formulas using a full or incremental allocation method, depending on whether you want to replace or increment existing account balances.

Generating Journals Using the Full Allocation Method

Choose the Full allocation method to generate journals that reverse previous allocations or to post new allocation amounts. We recommend that you use this method only if you are allocating amounts for the first time, or only once.

To replace a previous allocation requires two steps. First, reverse the original allocation. Second, create a mass allocation for the new amounts.

Generating Journals Using the Incremental Allocation Method

Choose the Incremental allocation method when you want to update allocated balances without reversing the previous allocation batches. Using this method, you can generate allocation journals as many times as you wish, provided there is no activity against the target accounts between runs.

We recommend that you do not use the incremental method the first time you generate a MassAllocation entry. However, if you do generate your first MassAllocation entry using this method, your target balance must be zero.

Before generating incremental allocation journals, post all batches you previously generated from the same formula batch.

If you rerun your incremental batches, General Ledger uses cumulative period-to-date, quarter-to-date, year-to-date or project-to-date balances for the accounting period you specify. The first amount type General Ledger encounters in the A*B/C formula is the amount type used for the target account when calculating the incremental allocation amount (A*B/C).

See Also

Creating Allocation Entries

MassAllocation Example

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