Understanding Advanced Variable Numerator Allocations

With advanced variable numerator allocations, you can:

• Allocate amounts from one business unit to other business units.

• Base an allocation on a variable, such as head count, square footage, or percentage of use. The allocation percentages change automatically as the variable changes.

• Set up budget amounts.

The system calculates variable numerator allocations by computing percentages that are applied to the balance of an account or a range of accounts. You can allocate to a range of subsidiaries and subledgers for an object account if you set up the destination accounts appropriately. The percentages represent fractions of the total of the balances in the accounts that you specify. The balance total is the denominator, and the individual account balances are the numerators of the fractions.