Understanding Reallocation Rules

Reallocation rules are used to move amounts from one account to another. Reallocation rules consist of two or more offsetting accounting entries that must balance. For example, the first offset accounting entry might represent a reduction to the accounting entry that is set up in the base rule. The second entry might represent the increase to the new account. The system requires that the total of the percent to include for reallocation rules must net to 0. You do not need to enter a negative percent for credit reallocation rules.

You can set up reallocation rules on any base rule for any AAI, with the exception of 4831, Accrued (unbilled) Revenue, and 4832, Accrued (unbilled) Receivables. Reallocation rules are not enabled for these AAIs because these AAIs might be credited or debited, depending on the journal generation control setting in the billing constants; therefore, the credit or debit option in the reallocation rules would be misleading.

We recommend that you use AAI 4811, Actual Revenue, or 4822, Taxable Receivables, to assign reallocation rules for revenue or taxable receivables distribution accounting entries.