Allocation accounts are great tools and can be especially powerful when utilizing Variable Allocation accounts in combination unit accounts that act as the breakdown accounts. However there are also some limitations and inefficiencies with using these tools at times. I have seen other ERP systems utilize a feature they call "Vectoring" which for all purposes is a type of allocation account, however the allocation percentages only apply to part of the GL Account. For example say you have a COA with two segments XXXXXX-XXXX with the first segment representing the natural account number and the second segment representing department. A vector would allow you to define percent allocations but just for one segment, that could then be used against any GL account. Let's say my vector is called "OH Allocation by Dept" and I define that 25% goes to department ACCT, 25% goes to SALE & 50% goes to MKTG. Once that is defined, I could then enter any GL account and my vector would split out the total amount amongst the various accounts in the vector, in this case by Department. I have customers who've shown me this type of functionality in other systems. As an example they can enter a payables invoice and code the total expense to one GL account, then apply one of their vectors and the system then splits out that one distribution to all of the departments associated with the vector, saving them a lot of time coding. The other big time saver here is that unlike defining allocation accounts, with vectors, they don't have to set one up for each and every GL account, which is a big drawback of GP's allocation accounts IMHO.
Could this be done with a fixed allocation account?? That's how we distribute costs to various departments.
Category: Financials - General Ledger
Jodi Christiansen (administrator) on 5/28/2019 7:19:25 PM
Thank you for your suggestion. We will consider this in a future release.