Considerations for Allocation Methods
When you define an allocation rule, you specify the allocation method which determines how generated amounts are allocated to projects and tasks. Full and incremental allocations distribute all the amounts accumulated during the generation period. The two types of allocation methods are:
-
Full Allocation
-
Incremental Allocation
Full Allocation
The full allocation method always distributes the entire source pool amount to target projects and tasks and generates allocation transactions for the entire amount each time in a period. This method is suitable to process an allocation rule only once within the same accounting or project accounting period.
If you generate allocation transactions using a full allocation rule twice for the same period, then the complete source pool amount is allocated twice to target projects and tasks in the same period. If this is done inadvertently, then you can reverse the duplicate allocation.
Example: Allocation of Source Amount Using Full Allocation Method
The example in the following table explains how the source amounts are allocated using the full allocation method.
|
Allocation Number |
Source Pool Amount |
Total Allocated Amount to Targets |
Previous Allocated Amount to Targets |
Current Allocated Amount to Targets |
|---|---|---|---|---|
|
1 |
1050.00 |
1050.00 |
0.00 |
1050.00 |
Incremental Allocation
Incremental allocations create expenditure items based on the difference between the transactions processed in the previous and current allocation generation. This method is suitable if you want to use the allocation rule to generate allocations several times in a single period. The application keeps track of the results of previous incremental allocation generations. Therefore, you can process an incremental allocation multiple times within the same period creating additional transactions to incrementally increase or decrease the amount allocated to each target project and task based on changes to the available source pool amount and basis logic from the previous incremental generation. You can review and delete draft allocations until you're satisfied with the results.
For incremental allocations, the application calculates the amounts allocated in the previous allocation generation.
Example: Allocation of Source Amount Using Incremental Allocation Method
The following example explains how the source amounts are allocated using the incremental allocation methods: The amount type used in this allocation rule is period-to-date and allocation is generated for the June 2010 period. The example in the following table explains how costs are allocated incrementally to target projects and tasks throughout this period.
|
Allocation Number |
Source Pool Amount |
Total Allocated Amount to Targets |
Previous Allocated Amount to Targets |
Current Allocated Amount to Targets |
|---|---|---|---|---|
|
1 |
1000.00 |
1000.00 |
0 |
1000.00 |
|
2 |
1100.00 |
1100.00 |
1000.00 |
100.00 |
|
3 |
1050.00 |
1050.00 |
1100.00 |
- 50.00 |
At the end of the period, the total amount allocated to targets is 1050.00. This is made up of sets of incremental allocation transactions. Incremental transactions can be positive or negative, based on changes to the source pool, eligible targets, and basis calculations.