Adding, editing, or cloning allocation definitions

An allocation definition is set of business rules and data sources used to define the conditions in which expenses are moved from overhead to direct departments. The definition allows you to:

  • Identify the source of the indirect allocation by specifying the departments and accounts house the expenses to allocate

  • Select the statistic to use to spread the expenses

  • Identify the targeted departments for the spread

  • Select the cost category in which to push the indirect costs

When using a single step-down approach, the order of the definitions becomes important. The order can be adjusted after they are created.

The Manage allocation definitions page allows you to view and configure allocation definitions, including setting the order you want the system to process them and how you want to allocate dollars.

Axiom allows you to create multiple versions of the allocation definition table to assign across your cost models. For more information on how cost models work, see Working with cost models.

TIP: Make sure to maintain your allocation definitions on a regular basis as departments, accounts, statistics, and so on are updated in your organization.

To add, edit, or clone allocation definitions:

  1. From the Enterprise Decision Support home page, in the Cost accounting section, click Modify a cost model or Create a cost model.

  2. The last cost model selected is shown at the top of the page. To change cost models, select another one from the Select cost model drop-down.

  3. Under the Reclasses and allocations section, click Define allocations.

  4. To create or select an existing allocation definition table version to assign to this cost model, click the link in the cost model's name in the table's header. In the Modify a cost model dialog, from the Allocations drop-down located at the bottom of the page, do one of the following, and click Save:

    • To create a new version of the allocation definition table, click Create new version.

    • To assign an existing version of the allocation definition table, select the version from the list.

      NOTE: This step is optional. As part of the initial set up of the cost model, the version has likely already been created or selected. This step simply provides you a quick and easy way to select another version to use or create a new one from scratch, if needed.

  5. To show or hide inactive definitions in the table, click the gear icon in the upper-right portion of the screen and check/uncheck the Show only active definitions check box. While unchecked, the table shows inactive definitions shaded in yellow. Only active definitions include a check mark in the Active column.
  6. Do one of the following:

    • To add a definition, do one of the following:

      • If you are not yet sure in what order to place the new definition, click + Add definition at the top of the page. The system places the definition to the bottom of the list of active definitions.
      • If you know where to place the new definition in the list, click the plus icon in the Actions column. The system places the definition after the existing definition.
    • To edit a definition, click the notepad icon in the Actions column.
    • To clone a definition, click the notepad icon in the Actions column. In the Edit allocation definition dialog, click Clone in the bottom left corner.

      TIP: To find a specific definition, use the Search field.

  7. In the Add/Edit allocation definition dialog, complete the following fields, and click Save:

    Field Description
    Title* The name of the definition.
    Comment The details or description of the definition.
    Use source cost categories?

    Do one of the following:

    • To assign the definition to all cost categories, click the toggle to Yes.
    • To assign the definition to a specific cost category, click the toggle to No.

    NOTE: This field does not display if the cost model uses simultaneous equations. For more information, see Creating or modifying a cost model
    Activate?

    Do one of the following:

    • To activate the definition for cost model processing, click the toggle to Yes.
    • To deactivate the definition so that it is not processed with the cost model, click the toggle to No.

    For more information regarding this option, see Activating or deactivating allocation definitions.
    Cost category

    If you set the Use source cost categories toggle to No, select the cost category in which to apply the account.

    NOTE: This option is only enabled when you select No in Use source cost categories.
    1. From departments

    Select the source department(s) in which to allocate dollars from by clicking the funnel icon to add or select a filter. For instructions, see Using the Filter Wizard.For instructions, see "Using the Filter Wizard" in the online help.

    TIP: Preview the filter query or results by clicking the notepad icon or spreadsheet icon to toggle between the two views.
    And accounts

    Select the account(s) in which to allocate dollars from by clicking the funnel icon to add or select a filter.

    2. Allocate based on

    Select the statistic account(s) in which to allocate by clicking the funnel icon to add or select a filter.
    3. To departments

    Do one of the following:

    • To allocate to all departments based on the criteria selected in the 2. Allocate based on section, select All departments.

    • To allocate to specific departments, select Select department(s), and click the funnel icon to add or select a filter.

  8. Edit the definition processing order, as needed.
  9. If you are creating a new model, the next step is to process the cost model. Click Next in the bottom right corner of the page.
  10. If you are modifying an existing cost model, you can continue making changes to other parts of the model or go directly to processing the cost model if this is your only change.

    11. IMPORTANT: When making any changes to an existing cost model, you must reprocess it in order for the results to reflect the changes.