19.6.1.3.7 Allocation

The Allocation tab is not applicable for General Ledger to Management Ledger.

Configure the following Allocation settings:
  • Adjustment Allocation: Select Automatic if you want the application to pass automated adjustment entries, else select Manual.
  • Adjustment Posted to: Select the target table where the adjustments are to be posted, that is, select Product Processor if the adjustment entry must be posted to the Product Processor selected in the Product Processor Parameter window, else, select Other.
  • Target Entity: Based on the selections made in the preceding two fields, the Target Entity is disabled or enabled. Select the appropriate option.
  • Adjustment Rule: Select the Adjustment Rule .
  • Allocation Amount Column: Is enabled or disabled based on the Adjustment Posted To option selected. Balance Attribute.
  • Account Level: For attributes configured at the Adjustment rule, the system will default the attribute values from the Target (PP) record associated with the Max Balance account. When Account Level is enabled, the system will populate the selected attribute using the corresponding value from the Max Balance account, overriding any expression defined in the selected adjustment rule or template. In such cases, the expression specified in the adjustment rule/template will be ignored.

    Note:

    The system identifies the participating account with the highest balance among the contributing PP rows and defaults the configured attributes using values from that account’s corresponding PP record. This ensures consistent, data-driven defaulting for adjustments created from multiple contributing rows, reduces manual input, and improves the quality of downstream postings. All the Data types are supported except for the Numeric (amount and rates) and the updated column value will be in “Read-only” mode.
    For example, Source table: STAGE_GL_DATA = 300000 Target (PP) table: STAGE_LOAN_ACCOUNT = 250000 Difference = 50000 Scenario: A reconciliation rule identifies a difference and creates an adjustment. Account Level = Yes is enabled to default selected adjustment attributes from the loan account (PP) with the maximum balance.

    Table 19-5 Target (PP) data: STAGE_LOAN_ACCOUNT

    Stage Loan Account EOP balance Branch Legal Entity Code
    LA-330 80,000 BR3 LE1
    LA-205 120,000 BR2 LE1
    LA-101 50,000 BR1 LE1

    B. Adjustment attributes configured for Account Level defaulting - BRANCH CODE

    C. Result on generated adjustment (defaulted values)

    Table 19-6 Target (PP) data: STAGE_LOAN_ACCOUNT

    Stage Loan Account EOP balance Branch Legal Entity Code
    LA-101 50,000 BR1 LE1
    LA-205 120,000 BR2 LE1
    LA-330 80,000 BR3 LE1
    PLUG001 50000 BR2 LE1
  • Allocation Ratio: If adjustment entry is to be passed to more than one PP entity, specify the ratio at which this entry is to be passed.
  • Adjustment Attributes: Use this field to split the adjustments further based on the non-dimension columns of the Target table. The reconciliation definition differences that arise from the definition execution can be adjusted back to the target table, based on the values of non-dimension columns. This can be done apart from the dimension columns.
For post adjustments with more granularity, perform the following steps:
  1. Click the hierarchy icon under Adjustment Attributes.
  2. Click inside the box. Search and select the attributes from the list.
  3. Click Done.
  4. Click Save.
Do not select these attribute types from the Adjustment Attributes list:
  • Reconciliation Dimensions
  • Number Data Type Columns
  • Date Data Type Columns

Note:

Reconciliation differences are created based on reconciliation dimensions alone but not on the Adjustment Attributes selected.

Adjustment Attributes play a role in creating adjustments with the differences that are observed. The values in the selected Adjustment Attributes of the participating columns of aggregation are read and based on the unique combination of values in these attribute columns, adjustments are created and the same values default in the respective adjustments. The reconciliation definition differences are split among the adjustments based on the weighted average ratio of the participating target balance values.

For more information about Adjustment Attributes and an example, see 'Adjustment Attributes'.

Topics:
  • Map Level Reconciliation (if Map Level Reconciliation is selected in the Settings tab)
  • GL Level Reconciliation (if GL Level Reconciliation is selected in the Settings tab)