Allocation Rules: To Create an Allocation Rule Based on Budget Data

In this activity, you will learn how to create an allocation rule in which amounts are distributed based on budget data among accounts and subaccounts.

Story

Suppose that the SweetLife Fruits & Jams company pays the Christmas bonus to its employees. The amount budgeted for the 2024 bonus is $18,000.00. At the end of each period, an accountant needs to accrue the budgeted bonus expenses for each department proportionally to the monthly salary.

Acting as an administrator, you need to define an allocation rule based on budget data.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Companies (CS101500) form, the SWEETLIFE company has been defined.
  • On the Branches (CS102000) form, the HEADOFFICE branch of the SWEETLIFE company has been created.
  • On the Chart of Accounts (GL202500) form, the following accounts have been created:
    • 20050 - Bonus Accrual
    • 69500 - Salaries and Wages
    • 69550 - Bonus Expenses
  • On the Ledgers (GL201500) form, BUDGET ledger has been defined.
  • On the Segmented Keys (CS202000) form, the SUBACCOUNT segmented key has been created.

Process Overview

On the Allocations (GL204500) form (Allocation tab), you will specify the general settings for an allocation rule. Then on the Source Accounts and Destination Accounts tabs of this form, you will specify the accounts and subaccounts for the rule.

System Preparation

Before you start creating the allocation rule, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as a system administrator Kimberly Gibbs by using the gibbs username and the 123 password.
  2. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, make sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.
  3. Make sure that you have completed the following prerequisite activity to perform the needed configuration of subaccounts: Subaccounts: Implementation Activity.

Step 1: Specifying General Settings for an Allocation Rule Based on Budget Data

To begin creating an allocation rule that distributes amounts based on budget data, do the following:

  1. Open the Allocations (GL204500) form.
  2. On the form toolbar, click Add New Record.
  3. In the Description box of the Summary area, type Christmas bonus.
  4. In the Branch box, ensure that HEADOFFICE is selected.
  5. On the Allocation tab, in the Start Period box, select 01-2024.
  6. Leave the End Period box empty.
  7. Make sure that the Recurring check box is cleared.

    You have left the check box cleared because the allocation rule needs to be used only in 2024.

  8. In the Allocation Method box, make sure that the By Account PTD option is selected.

    The source amount is a period-to-date amount.

  9. In the Distribution Method box, select By Dest. Account PTD.

    The source amount will be distributed proportionally to the period-to-date balances. When you select this option, the Base Ledger box becomes available.

  10. In the Allocation Ledger box, ensure that ACTUAL is selected.
  11. In the Source Ledger box, select BUDGET.
  12. In the Base Ledger box, ensure that ACTUAL is selected.

    The proportions will be calculated based on the ACTUAL ledger.

  13. Make sure that the Allocate Source Accounts Separately check box is cleared.
  14. In the Last Revision Date box, leave the current date, which the system has inserted.

You have specified the general settings for the allocation rule; you will now proceed to specifying source and destination accounts and subaccounts for the rule.

Step 2: Specifying Accounts and Subaccounts for the Allocation Rule

To specify the accounts for the rule, while remaining on the Allocations (GL204500) form, do the following:

  1. To specify the source account from which the allocated amount will be deducted, on the Source Accounts tab, click Add Row, and specify the following settings in the added row:
    • Branch: HEADOFFICE
    • Account: 69550
    • Subaccount: 000-000
    • Contra Account: 20050
    • Contra Subaccount: 000-000
    • Percentage Limit: 100.00

      This setting indicates that the full amount will be distributed during the allocation process.

  2. To specify the first destination account–subaccount pair to which the amount will be allocated, on the Destination Accounts tab, click Add Row, and specify the following settings in the added row:
    • Branch: HEADOFFICE
    • Account: 69550
    • Subaccount: 000-FIN
    • Base Branch: HEADOFFICE
    • Base Account: 69500
    • Base Subaccount: 000-FIN
  3. To specify the second destination account–subaccount pair to which the amount will be allocated, click Add Row, and specify following settings in the added row:
    • Branch: HEADOFFICE
    • Account: 69550
    • Subaccount: 000-MKT
    • Base Branch: HEADOFFICE
    • Base Account: 69500
    • Base Subaccount: 000-MKT
  4. To specify the third destination account–subaccount pair to which the amount will be allocated, click Add Row, and specify the following settings in the added row:
    • Branch: HEADOFFICE
    • Account: 69550
    • Subaccount: 000-OPS
    • Base Branch: HEADOFFICE
    • Base Account: 69500
    • Base Subaccount: 000-OPS
  5. To specify the fourth destination account–subaccount pair to which the amount will be allocated, click Add Row, and specify the following settings in the added row:
    • Branch: HEADOFFICE
    • Account: 69550
    • Subaccount: 000-SLS
    • Base Branch: HEADOFFICE
    • Base Account: 69500
    • Base Subaccount: 000-SLS
  6. Click Save on the form toolbar.