Background: Allocating Journal Maintenance
Use the Allocating Journal Maintenance (GAM) program to add, change, copy, and delete a control account for each journal and the allocation percent for each distribution account. See Road Map for work flow.
This topic has these subtopics:
Function
You can set up an allocating journal to distribute the current balance in a control account to various distribution accounts within the same consolidation.
Typically, you use allocating entires to distribute current and prepaid expenses among cost centers or departments. For example, you might allocate the expense for rent to departments in your company. The percent you allocate may be based on the amount of space each department occupies. At the end of each period, you would run the Allocating Journal Processing (GAP) program to allocate the expense to the applicable accounts for each department.
Because you must allocate 100% of the balance each time, you can allocate any portion of the balance not currently distributed to other accounts back to the control account. Within the same period, you can then re-allocate the amount distributed back to the control account.
Currency
If you post to accounts that use different currencies, you need to determine the current exchange rate and enter the appropriate offsetting entries.