Understanding Indexed Allocations

Use indexed allocations to redistribute amounts from one business unit or range of business units in a company to another business unit or range of business units in a company. Indexed allocations are the most flexible and most commonly used allocation method because of their copy feature. For example, you can copy this year's actual amounts to next year's budget. You can also use indexed allocations for these purposes:

To distribute expenses categorized as overhead among business units or companies in your organization.
To allocate from one company to another.
To multiply by a positive or negative factor before allocating.
To take actual amounts, multiply by a certain percentage, and allocate the amounts to the budget ledger.
To allocate a budget amount to another account.
To allocate to or zero out the budget fields (BORG, BREQ, BAPR).
To set up either annual or monthly budgets.
To zero out accounts.
To create allocations transaction-by-transaction in the F0911 table or directly update account balances in the F0902 table.

The system maintains indexed computations in the Index Computation Entry File table (F0912A).

You can apply an index, or rate, to the balance of an account or a range of accounts. The system distributes the resulting balance to another account, period, and ledger or to a range of accounts, periods, and ledgers.

To create a budget using indexed allocations, use the balance method and complete the budget fields in the detail area of the Allocations - Index Computations form.

You can also use indexed allocations to allocate amounts from the AA (actual amounts) ledger to the BA (budget amounts) ledger to create a budget.