G.2.10 Implications for Allocation Rules

Your choice of Signage convention does not affect the design of your allocation rules. To see why this is the case, examine the following examples:

• If you have chosen to store your expenses as negative numbers (Reverse GAAP convention), an allocation of expense from one cost center to another cost center debits the receiving center with the negative expense (signage is preserved) and credits the source center with the positive expense (signage is reversed).
• If you have chosen to store your liabilities as negative numbers (GAAP convention), a liability allocation from one cost center to another cost center credits the target center with a negative liability balance (signage is preserved) and debits the source center with a positive liability balance (signage is reversed).

In short, the allocation engine is indifferent to (and does not know) the Signage convention you have adopted.