Managing allocation rules

Allocations allow organizations to share expenses across departments or other groupings. For example, you can allocate salaries of C-level executives to other departments or branches based on the time spent in support of those groups. Or, you could allocate their salaries based on their impact on profits. Regardless of how you construct an allocation, each allocation is defined by rules that identify the costs to be allocated (cost pool), the departments to receive allocated costs, the percentage to be allocated to each department, the order in which those costs will be allocated, and the target and offset allocation GL accounts.

NOTE: Typically, expenses are allocated; you can, however, also use the Cost Allocation Engine to allocate income balances.

The Organizational Profitability page allows you to add, edit, and copy cost allocation rules, as well as process allocations and review the allocation calculations. Allocation rules are processed by the Cost Allocation Engine.

TIP: To review examples that demonstrate the configuration of different type of allocation rules, see Allocation rule examples.

Manage and Process Data tab

To open the Manage and Process Data tab:

  1. On the FI Command Center home page, click Organizational Profitability.

  2. Click the Manage and Process Data tab.

  3. This page has the following sub-tabs:

Add or Edit Allocations sub-tab

The Add or Edit Allocations sub-tab allows you to add, edit, and copy allocation rules. It also offers bulk editing and group management functionality, and easy reordering of allocation rules.

For details, see Adding allocations, Editing allocations, and Using allocation groups.

Process Allocations sub-tab

The Process Allocations sub-tab allows you to run allocation rules for a specified time period.

For more information, see Processing allocations.

Review Allocations sub-tab

The Review Allocations sub-tab provides access to the Cost Allocation Engine utility, which allows you to review the changes made as a result of processing allocations.

For additional information, see Reviewing allocation calculations .