Allocation accounts should not be actual G/L accounts that carry a balance. I believe the solution should be that Allocation Accounts are not actual G/L accounts, but a different type of master record. Then, when they are entered on a transaction, the user would do the normal out-of-the-box functionality to choose:

• Account Type = Allocation Account
• Account No. = the allocation account

The issue we see is that when on a transaction, the user chooses:

• Account Type = G/L Account

The amount actually gets posted to that allocation account and the balance stays there instead of being allocated to the appropriate G/L accounts set up for it.

By not having it as a G/L account type of master record, it will improve the functionality where there that account is not able to be chosen on the drop down for Account No. when Account Type = G/L account.