Configure allocations and reclasses

Use Axiom Enterprise Decision Support to spread dollars from one department or account to other departments using two different methods:

• Overhead allocations - Set up a structured allocation process to move expense dollars from overhead departments to In Patient departments. For example, all In Patient departments use the IT department in a hospital. You can use allocations to redistribute the cost of running the IT department across all of the In Patient departments.

• Reclasses - Allocate any dollar amount from direct departments to other direct departments. For example, you have several nursing departments on a floor, but only one of these nursing departments holds the drug supply expenses for all of the nursing departments on that floor. You can use a reclass to redistribute the cost of the drug supplies across all of the other nursing departments on the same floor.

NOTE: You should always run reclasses first, especially revenue reclasses, to normalize the dollars before running allocations to redistribute expenses.

In another example, you have a cafeteria in your hospital. You can run a revenue reclass to offset the expenses of the cafeteria with its revenue. This revenue comes in the form of money paid by visitors, doctors, and staff that visit the cafeteria. You can then use an allocation to redistribute any remaining dollars across different In Patient departments, which are associated with managing, creating, and distributing meals to patients.