Dynamic allocations overview
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As your business scales, an after-the-fact allocation tool can save time and effort by dynamically generating allocations on a periodic basis. Allocating revenues and costs helps an organization gain a better understanding of performance for departments, projects, and more. Sage Intacct offers a native allocation solution that allows you to automate the allocation calculation tasks for routinely shifting costs or sharing revenues.
Dynamic (account) allocations are designed to pull source balances automatically and distribute them across dimensions, according to the calculation method that you define. This style of allocation includes the setup of an allocation template so you can routinely generate allocations without having to redefine the calculations every time. This capability helps organizations that need more than the basic transaction allocations, and those businesses that have time-consuming periodic or complex allocations.
For example, you have a dimension called Program, and within that dimension you have 4 programs: A, B, C, and D. You use a basis (calculation method) that allocates the following percentages:
10% to program A
20% to program B
30% to program C
40% to program D
A source balance of 100,000 is allocated as follows:
- 10,000 to program A
- 20,000 to program B
- 30,000 to program C
- 40,000 to program D
The result is that allocated costs reflect true performance.
Dynamic allocations offer easy setup, including both parameters and allocation methodology, routine processing, and a click-through history to make it easy to see how allocations have been derived and applied.
- Ability to allocate revenues and expenses, even across entities
- Dynamic source balance pulls
- Dynamic basis calculation
Auditors analyze allocations and want to ensure that a consistent, reasonable methodology was used to produce allocation entries. Intacct captures the allocation parameters at the time of processing and attaches a snapshot of both the setup and the results to the posted entry for a rock-solid audit trail for every allocation. For full visibility into how the math was derived, you can drill down to the source and basis amounts that Intacct found through the allocation.
The Dynamic allocation process
Dynamic allocations streamline the process of periodic allocations of revenue and expenditures based on business drivers.
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Verify the account allocation on the allocations log page.
