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AIT allows you to create Allocation Templates based on the balances of any posting account in any company. First, you choose the “Allocation Basis” accounts. These are the GL Posting Accounts that will make up the balances used to calculate the formula. Then you assign Distribution Accounts to the Allocation Basis accounts. These are the accounts that will receive the distributions based on the percentages derived from the Allocation Basis accounts.
For example, let’s say you want to allocation your warehouse rent based on company revenue. You would select the revenue accounts from your various companies as the allocation basis accounts. Then you would select the warehouse lease expense accounts as the distribution accounts for each of the allocation basis accounts. When you apply the template to an invoice from your warehouse vendor, AIT will calculate the appropriate rent based on the revenue allocation for your various companies.
Account balances are determined either by the YTD balance or Period balance. If printing the Allocation Template List, the calculation is based on the User Date. If applying a template to a transaction, it is based on the transaction date.
To test your formula, print the Allocation Template report from the Print button on the AIT Allocation Maintenance window. The report will lookup the balances of the Allocation Basis accounts and calculate the percentages. All Allocation Basis accounts will total 100%. The various distribution accounts will determine the formula calculated by the Allocation Basis accounts. If the total of the Allocation Basis accounts is 0.00, you will see an error on your Allocation Template List.
If you want to use non-financial data, such as number of employee or square feet or number of customers, you cannot use Dynamics GP unit accounts (as you would do for Variable Allocation Accounts), but there is a way to do this with AIT. Simply create a new company in your Microsoft Dynamics GP system and use standard posting accounts in that company for the allocations. Create posting accounts that will store the information you want to use, such as square footage or employee count or any other statistic you might want to store in a unit account. This “Allocation” company would contain only this type of information and would not contain any financial data. These accounts could then be used to formulate the allocation basis for your Allocation Templates.