Add, edit, or clone allocation definitions

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

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

  • Select the statistic 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 is important. You can adjust the order after they are created.

Use the Manage allocation definitions page to view and configure allocation definitions, including setting the order in which the system processes them, and how you want to allocate dollars.

You can create multiple versions of the allocation definition table to assign across your cost models. For more information about how cost models work, see Working with cost models.

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

Add, edit, or clone allocation definitions

  1. From the Enterprise Decision Support home page, click Modify most recent cost model or Manage cost models in the Cost accounting section. The last cost model you selected appears at the top of the page.

  2. To change cost models, select another one from the Select cost model dropdown.

  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 Manage cost models dialog, take one of the following actions from the Allocations dropdown, and then 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 provides a quick and easy way to select another version or create a new one, if needed.

  5. To show or hide inactive definitions in the table, select the gear icon in the upper-right portion of the screen, and then select or clear the Show only active definitions check box. While unselected, the table shows inactive definitions shaded in yellow. Only active definitions are selected in the Active column.
  6. To add a definition, take one of the following actions:
    • 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 at 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 then 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, toggle to Yes.
    • To assign the definition to a specific cost category, toggle to No.

    NOTE: This field is not displayed if the cost model uses simultaneous equations. For more information, see Add or modify cost models
    Activate?

    Do one of the following:

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

    For more information about this option, see Activate or deactivate 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 enabled only when you select No in Use source cost categories.
    1. From departments

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

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

    Select the accounts) from which to allocate dollarsby clicking the funnel icon to add or select a filter.

    2. Allocate based on

    Select the statistic accounts from 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, click All departments.

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

  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.
  10. If you are modifying an existing cost model, you can continue making changes to other parts of the model or go directly to process the cost model if this is your only change.

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