Understanding the Process for Creating Allocations

These steps are required for each type of allocation:

• Enter allocations

• Review allocations

• Calculate allocations

After calculating allocations, review and post the journal entries that the allocation creates. You should review the journal entries that are created by the allocations programs for accuracy and to correct any errors. The General Ledger Post program updates the appropriate tables and creates the necessary journal entries. It also creates reversing journal entries if your allocation was set up as a reversing allocation.

You should use document type JA for allocations. All allocations use batch type D.

This graphic illustrates how calculating allocations creates journal entries for the AA (actual amounts) ledger: