1. General Accounting Implementation Guide
  2. Example: Seasonal Pattern

Example: Seasonal Pattern

A sports shop creates a seasonal pattern code called WIN to identify percents for revenues and expenses for its winter ski equipment. The shop allocates budget amounts to the winter months because little activity occurs for ski equipment in the summer months. The shop identifies these percentages for the winter months:

  • November - 10 percent

  • December and January - 25 percent each

  • February and March - 20 percent each

The sports shop creates an annual budget amount for each applicable account and assigns the seasonal pattern code WIN to the accounts. The shop enters 120,000 to an account with a WIN pattern code and then runs a program to spread the amounts among the periods. Based on the percentages in the WIN budget pattern code, the system spreads 12,000 to November, 30,000 each to December and January, and 24,000 each to February and March.