Entering Mass Allocation Formula Lines


All MassAllocation formulas use the following equation to determine allocation amounts:
COST POOL * (USAGE FACTOR / TOTAL USAGE)

General Ledger uses the following format to represent the equation. Each factor in this equation relates to a separate formula line.  A * B / C
You can enter any combination of fixed amounts and accounts in formula lines A, B, or C.
Note: When you create MassAllocation formulas, you can enter specific amounts or specify an account for lines A, B or C.

If you do not choose Full Cost Allocation: you can enter an amount instead or an account in any of lines A,B or C.
If you choose Full Cost Allocation: you can enter an account or amount in line A but lines B and C must contain accounts only.

To enter an account in a MassAllocation formula line:
1. Enter the account for the A, B, or C line of your formula. Enter accounts with parent segment values to create a formula that references accounts with the corresponding child segment values.
When you enter an account, General Ledger ensures that segment values are valid and enabled.

1.1 Assign a segment Type for each account segment. The combination of parent/child segment values and types tells General Ledger which related accounts are affected or used by that portion of the
formula.
You can assign one the following segment types to each segment:
Looping (L): Assign this type to a parent segment value to include each child value assigned to the parent value in the formula. The allocation program runs each formula once for each corresponding
child segment value. You can loop only on parent values.
Summing (S): Assign this type to a parent segment value to sum the account balances of all the child segment values assigned to a parent. For example, if you enter a parent that has five child values, the allocation program adds the account balances of the five child accounts and uses the sum in each MassAllocation formula. You can sum only on parent values.
Constant (C): Assign this type to a child segment value to use the detail account balance associated with the child. You can use this type with a parent segment value only if there is a summary
account associated with the parent.
Note: To use summary accounts in a mass allocation formula, all segments in the formula must be assigned a segment type of Constant.

1.2 Enter the currency.

1.3 Enter the Amount Type you want to use: Period–to–Date, Quarter–to–Date, Year–to–Date, project–to–Date

1.4 Enter the Relative Period for the account balance you want to use:
• Current Period
• Previous Period
• Year Ago, Same Period

1.5 Enter the account Balance Type to use for the formula line. If you enter the Budget balance type, you must also enter a Budget name. If you enter the Encumbrance balance type, you must also enter an
Encumbrance Type.

2. Entering a Target Account
Enter an account in the Target line to specify the destination for your allocations.
When the result of your allocation formula is a positive number, the resulting journal entry debits the target account and credits the offset account. When the result of your allocation formula is a negative number, the resulting journal entry credits the target account and debits the offset account.

Note: The target account must conform to the allocation formula rules for target accounts. Be sure to also follow the account segment cross–validation rules. The validation program does not check for account cross–validation rule violations. If you enter a target account that violates a
cross–validation rule General Ledger creates invalid journal lines when you generate the formula. You must correct the resulting journals in the Enter Journals window before you post.

3. Entering an Offsetting Account
Enter an account in the Offset line to specify the account to use for the offsetting debit or credit from your allocation. The Offset account is usually the same account as formula line A to reduce the cost pool by the allocated amount.
When the result of your allocation formula is a positive number, the resulting journal entry debits the target accounts and credits the offset account. When the result of your allocation formula is a negative number, the resulting journal entry credits the target accounts and debits the offset account.

Note: The offset account must conform to the allocation formula rules for offsetting accounts. Be sure to also follow the account segment cross–validation rules. The validation program does not check for account cross–validation rule violations. If you enter an offset account that violates a
cross–validation rule General Ledger creates invalid journal lines when you generate the formula. You must correct the resulting journals in the Enter Journals window before you post.

4. Save your work.


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