Many companies use posting layers to produce their accounting under different accounting frameworks (e.g. internal management accounts, local statutory accounting and IFRS). In order to make automatic allocations for postings to one of the layers used for corrections to a different framework, we propose to open the allocation functionality in GL up to enable postings on a layer based on financial dimension balances of another layer. This would e.g. enable companies with a fixed intercompany trade markup percentage to release the provision for unrealised profits from balance sheet to expenses automatically based on cost of goods sold for preparation of local tax accounts.

When an allocation rule is set up, the source field group should include a drop-down to say from which posting layer the source amount to be calculated is taken, multiple selection should be possible (e.g. operations + custom layer 1 + custom layer 3). The journal names should be opened so that if the journal type is Allocation, other posting layers than the operations layer can be posted to. If allocations are processed, the base amount is taken from what has been posted to the financial dimension combinations of the allocation base in the (combination of) posting layer(s) defined in the source section of the allocation rule. The allocation journal will then be posted to the posting layer that is defined in the journal names setup.