Exercise - Configure and test ledger allocation rules

  • 16 minutes

You need to configure and test ledger allocation rules in the USMF company. The accountant requests that you create three new ledger accounts to allocate posted transactions equally to different financial dimensions, based on a rule for the current period.

Create main accounts

To create main accounts, follow these steps.

  1. Go to General ledger > Chart of accounts > Accounts > Main accounts.
  2. In the Action Pane, select New.
  3. In the Main account field, enter 100001.
  4. In the Name field, enter Allocated Account 1.
  5. Select Save in the Action Pane
  6. Select New.
  7. In the Main account field, enter 100002.
  8. In the Name field, enter Allocated Account 2.
  9. Select Save in the Action Pane.
  10. Select New.
  11. In the Main account field, enter 100003.
  12. In the Name field, enter Allocated Offset Account.
  13. Select Save in the Action Pane.

Create date intervals for the current period

To create date intervals for the current period, follow these steps.

  1. Go to General ledger > Ledger setup > Date intervals.
  2. Select New.
  3. In the Date interval code field, enter CurPeriod.
  4. In the Description field, enter Current Period.
  5. In the From date period type field, select Period.
  6. In the From date Start/End field, select Start.
  7. In the To date period type field, select Period.
  8. In the To date Start/End field, select End.
  9. Save and close the page.

Create an allocation journal name

To create an allocation journal name, follow these steps.

  1. Go to General ledger > Journal setup > Journal names.
  2. Select New.
  3. In the Name field, enter AllocDemo.
  4. In the Description field, enter Allocation Journals.
  5. In the Journal enter field, select Allocation.
  6. In the Voucher series field, enter or select any value.
  7. Close the page.

Create an allocation rule

To create an allocation rule, follow these steps.

  1. Go to General ledger > Allocations > Ledger allocation rules.
  2. Select New.
  3. Enter TravExp in the Rule field.
  4. Enter Travel Expense Allocation Demo in the Description field.
  5. Select the General tab above the grid.
  6. Select Yes in the Active field.
  7. In the Allocation method field, select Equally.
  8. In the Journal name field, enter or select AllocDemo.
  9. In the Date interval code field, enter or select CurPeriod, and then press the Tab key.
  10. Select Source in the Action Pane.
  11. Select New.
  12. In the Source criteria field, enter or select 601500.
  13. Select New.
  14. In the Field setting field, select Financial dimension.
  15. In the Name field, enter or select Department.
  16. In the Source criteria field, enter or select 024.
  17. Select Destination in the Action Pane.
  18. Select New.
  19. In the To account field, enter 100001.
  20. In the Department field, enter or select 023.
  21. Select New.
  22. In the To account field, enter 100002.
  23. In the Department field, enter or select 026.
  24. Close all pages.

Create and post general journal for allocation testing

The three main accounts you created earlier currently have no journal entries in them, so to run allocation with these accounts you must first post transactions in the General Ledger.

  1. Go to General ledger > Journal entries > General journals.
  2. Select New.
  3. In the Name field, enter or select GenJrn.
  4. Enter AllocDemo in the Description field.
  5. Select Lines in the Action Pane.
  6. In the Account field, enter 601500.
  7. In the Department field, select 024.
  8. In the CostCenter field select 014.
  9. In the Description field, enter Allocation Demo.
  10. Set Debit to 7200.
  11. In the Offset account field, enter 110110.
  12. Select Post.
  13. Close all pages.

Process an allocation request to test the allocation rule

To process an allocation request to test the allocation rule, follow these steps.

  1. Go to General ledger > Allocations > Process allocation request.
  2. In the Rule field, enter or select Travel Expense Allocation Demo.
  3. In the Proposal options field, select Proposal only.
  4. Select OK.

Verify the allocation journals created by processing the allocation requests

To verify the allocation journals created by processing the allocation requests, follow these steps.

  1. Go to General ledger > Allocations > Allocation journals.
  2. Find the journal named AllocDemo, and select Lines in the Action Pane.
  3. Review and analyze data to see if the original transaction has been allocated equally.
  4. Go to Validate > Simulate posting.
  5. Select Post.
  6. Close all pages.