This tool is used to automatically calculate budgets for accounts, based on budget entry to other accounts. For example, FICA and other payroll tax/benefit expenses can be auto-calculated based on a percentage of salary expense. The process totals the budget amount for each account/object and updates the budget in the target account.

Examples: Click here on examples to see various examples of allocations.

Year/Type: Allocation tables are set per year and budget type; each has its own allocation table. To view the table for a specific year/type, select the year and the type at the top of the screen. All allocations for that year/type will be displayed. When adding allocations for a new year you’ll most likely want to copy allocations from the prior year as a starting point. You can do that by clicking the Copy button. From there you can add/edit/delete allocations as appropriate for the new year.

Minor Acct: This is the minor account division to be automatically calculated. It is the division that is marked as the main account, which is set in G/L options.

Comments: Used for any documentation you wish to add.

Auto-Compute: If checked, this budget allocation will be computed on the fly as budgets are changed. If unchecked, budgets will only be computed when you manually click the Compute button.

Allow override: Determines if the budget for this computed account can be modified on the actuals/budgets screen. It can also be modified from global budget changes regardless of the checkbox. If auto-compute is activated, in normal circumstances you would not want to check Allow Override, as any budgets manually entered in the resulting account will be overridden the next time a budget is entered in the filtered range of accounts and thus auto-computed.

Check for allocations dependent upon this account: This should only be checked when the account being computed is part of another allocation so it can compute that allocation as well. If other allocations are not dependent upon this account then leave this unchecked for best performance.

Test for accounts already computed: In some allocations accounts may cross each other. This checks to see if the account was already computed so that it doesn’t compute it again and as a result may be incorrect. This should always be checked unless you have a problem computing accounts, which is only in rare cases where you have the target accounts specified and other factors are involved.

Include in computation when no components exist to match component filter: Check this box if you want all the filtered accounts considered in the calculation, regardless if they have component entry or only monthly budget amounts. 

Detail: The simplest allocation may consist of only one row. You will need multiple rows in some scenarios. For example: to specify an allocation with different amounts or percent rates per branch; or you might specify an allocation with one rate for Period Jan thru June and a different rate for Period July thru Dec. In these cases you would need a row added for each specified rate.

Copy and Paste Options: Budget allocations can be selected and copied. This allows for easy creation of allocations that utilize the same account filters, but have different amounts and/or component filters. 

Account Filter: This is the range of accounts/objects that are included in the calculation. If the target is within the range, it will not be included. You may filter any range of accounts and account parts to include. The Pick List button is available for quick selection. 

Type: Determines how to allocate budgets.

• Percent: Choose percent if you want to calculate based on a percent or 100 percent.
• Flat amount per account: Bases the calculation on a flat amount per account. The flat amount will be summed for each account with a budget.
• Flat amount per component: Bases the calculation on a flat amount per component or account. The flat amount will be summed for each component found with a budget. For example, if there are 3 components in a month for an account and the flat amount is $100 then the allocation will compute at $300. This is the usual setting for a flat amount.

In the case that no components exist for an account then it will use one flat amount for that account and component filter will not be applied; it will always be included.

An example of using “Flat amount per component” is calculating health insurance. The minor account is health insurance and the account filter is set to all salary accounts. If an account has a monthly budget amount (no budget components), the health insurance accounts will be updated with the flat amount for each month. If an account has budget components, the health insurance accounts will be updated with the flat amount for each line of budget components, if the health insurance is selected. 

Note on Forecast Allocations: If components are not used for forecasting, delete any forecast allocation table which is based on a component screen checkbox. Otherwise the system will calculate the allocation as zero, as no checkbox exists. It is fine to have forecast allocations which calculate on the monthly forecast amount (rather than a checkbox, such as FICA tax expense.

Percent or Amount: Depending on the type, this is either the percentage or flat amount.

Component Formula: If the budget needs to be modified at the component level then specify the formula here. This is typically used to apply a percent to an allocated budget. Below are the specifications.

• All formulas must begin with =a, where a is the amount specified in the Percent or Amount column. If you include a percentage calculation, you may need to enter a number—at least ‘1.00’ in the amount field so it does not multiply by zero. 
• To reference a column in the components, use “N” plus the data slot number you want to refer to (i.e. N2 - refers to Number 2).
• Key any whole number or decimal to specify a fixed number.
• Use the standard operators (+ - * /)
• There is no order of operations. Everything is calculated from left to right.
• Example: =a*N8*0.01

Flip Sign: If checked, this will flip the sign of all amounts accumulated. Naturally, revenues are negative and expenses are positive. Example: If you are allocating an expense account, based on a calculation of income accounts, you would want to check the flip sign box.

Include Zero Budgets: Controls if the component information related to a budget line is to be included if the budget total on the specific component is zero. This applies to allocations that are based on a flat amount per component. 

Periods: Specifies the range of periods that will be included for the allocation row.  You may add multiple rows to accomplish different ranges of periods.  Example: a row for Jan thru June; another row for July thru Dec. 

Group ID: By default allocation details lines within a single account are all treated separately, meaning they never meet. However, some allocations consist of more than one line that update the same chart of accounts. In this case it is necessary to group these detail lines together by assigning them all the same group. A group can be anything; a word or a number.

Component Filter: This is where you can filter what is to be included in the calculation based on component information. Budget components are user defined in budget component setup. Components can consist of the budget amount, text, numbers, and checkboxes. You can filter allocations by any of this information. In the case that no components exist for an account then it treats each month as one component and the component filter will not be applied; it will always be included.

Example: on a health insurance allocation, you may set a component filter if Plan 1 is selected on the budget entry screen; another row with component filter for Plan 2, a third row with component filter for Plan 3, etc. Another Example: on a retirement expense allocation, you may set a component filter if the retirement checkbox is checked on the budget entry screen. If the filter is based on a checkbox, add a component filter with Checkbox X (data slot number) Equal to 1 (indicates the box is checked). 

Target Account Divisions: Normally when an allocation is calculated, the minor account# will be updated in the same divisions (example fund/branch/dept/PCS) as the account that was calculated. Thus the Target divisions are normally left blank. However, if you want to specify a selected division to be overridden, it may be entered in the appropriate Target division.  For example, if you want all accounts that are calculated to update the allocated account in PCS 00000, enter “00000” under Target PCS. 

Comments: Used for any documentation you wish to add on this row.

Annual Component Cap Amount: If the amount of the allocation at the component level has an annual cap then specify it here. 

Cap Applies To: 

• Budget Amount – The allocation will only be calculated on the amount of the year-to-date budget up to the cap amount.

For example: on a FICA allocation, you may specify the annual cap amount. Since this will cap on each component row, be aware if you budget 5 part-time employees on one component row on a salary account, the FICA expense may cap on that row. So setting this cap amount may only be appropriate if you budget one employee only on each component row.

• Calculated allocation – The allocation will be calculated on the entire budget amount, but the result will not exceed the cap amount.

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Buttons:

Copy: This is a tool to copy the allocations for the year displayed to another year; or from budget this year to forecast this year.

Compute: This will recompute all budget allocations for this budget year and type and can be run at any time. You might need to recompute if budgets have already been entered for the year and you are just now setting up the allocation, or if you later change something in the allocation and need to recompute a single (or all) allocations. A recompute of a complex allocation may take some time. 

Speed

The speed of allocating budgets, which the computer does for you behind the scenes, is very quick. However, the more allocations you add and the more accounts/objects are within a single allocation, the slower the budgeting will become. If automatically updating budgets as they are entered slows down the budget entry process too much, then you can uncheck Auto-Compute for the budget allocation that are slowing it down. Then budgets will only calculate when you manually click the Compute button.
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Examples

Limitations

The following types of allocations will not work and are not supported:

• An allocation contains multiple lines and the account filters are not the same and one of the lines are to update the same account in another line. This will work for computing manually, but not the auto-compute.
• An allocation having both a cap amount and a component filter. The component filter will be ignored.
• An allocation has a target division specified, but there are accounts that exist for this minor account that have other divisions other than the target. This will work for auto-compute, but not computing manually.
• An allocation set to update the same minor account as the accounts filtered is not supported.
• When manually computing an allocation, the system will first clear all accounts for the minor before computing. Auto-computing of an allocation does not first clear all accounts for the minor; it simply calculates the allocation for the accounts in the same account divisions.

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Troubleshooting if the computed account is not correct:

• Double-check the account filter. There might be an “Or” when there should be an “And” or vise versa.
• Ensure the computed account has the same account divisions as the accounts they are based on. If not, specify the appropriate target divisions.
• Ensure the allocation being set up does not fall under one of the limitations, listed above.

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Components:

• When allocations are auto-computed, the “monthly” budget amounts are updated only. Budget allocations do not consider components; so if any component entry happens to exist in those accounts, those components will remain. This results in monthly budget amounts not equally the component amounts, requiring manual adjustments to either the monthly or component amounts.