MassAllocation Examples (Oracle General Ledger Users' Guide)

Row A represents the cost pool that you want to allocate to all departments. Rows B and C compute the relative amount of floor space occupied by each department ...           Previous  Next       Contents  Index  Navigation  Glossary  Library MassAllocationExamples Supposeyouraccountiscomposedofthreesegments:Company,DepartmentandAccount.Youwanttoredistributeyourmonthlyrentexpensefromdepartment100toeachdepartmentbasedontheamountofspaceeachdepartmentoccupies. Department999isaparentthatincludesalldepartmentsexcept100.Department100isthedepartmentthatstoresallrentexpenses.Account5740istherentexpenseaccount.SQFTisthestatisticalaccountusedtorecordsquarefootageforeachdepartment. Usage-BasedAllocationExample Toallocatethemonthlyrentexpenseforcompany01,definethefollowingMassAllocationformula:     Co   Dept   Acct Balance Type Relative Period   Currency Amount Type   C C C         A 01 100 5740 A CurrentPeriod USD PTD * C L C         B 01 999 SQFT A CurrentPeriod STAT YTD / C S C         C 01 999 SQFT A CurrentPeriod STAT YTD   C L C         T 01 999 5740 A CurrentPeriod USD PTD   C C C         O 01 100 5740 A CurrentPeriod USD PTD RowArepresentsthecostpoolthatyouwanttoallocatetoalldepartments.RowsBandCcomputetherelativeamountoffloorspaceoccupiedbyeachdepartment.Theserowsaccessstatisticalaccountsoftheform01-101-SQFT,01-102-SQFT,andsoon.RowBloopsthroughalldepartmentsegmentvalues.RowCcomputesthetotalofallfloorspaceoccupied. Assumetherearethreeotherdepartmentsbesides100inthecompany,101,102and103thatoccupy45%,30%and25%ofthecompany'sfloorspace,respectively.Thesedepartmentsarechildrentotheparentdepartment999.WhenyourunthisMassAllocationformulaforanaccountingperiodwith$100,000ofrentexpense,youproduceajournalentrythatlookslikethefollowing: debit01-101-5740.......45,000RentExpense-Dept101 debit01-102-5740.......30,000RentExpense-Dept102 debit01-103-5740.......25,000RentExpense-Dept103 credit01-100-5740.......100,000RentExpense-Dept100 Youcanusemorethanoneloopingsegmentinyourformula.Forexample,youcanperformthepreviousallocationforallcompaniesinyourorganization.First,defineaparentCompanysegmentvalue(forexample,99)thatisassociatedwithalldetailcompanyvalues.ThenuseCompanyvalue99insteadof01inallfiverowsoftheformulaabove.Finally,usetheLoopingsegmenttypeforcompany99ineachrow. IncrementalMassAllocationExample NowassumethatyouwillwanttoreallocateanadjustedcostpoolwithoutreversingthepostedjournalbatchescreatedbythepreviousMassAllocations.YoudefineyourMassAllocationwithadifferentoffsetaccountfromyourcostpool:     Co   Dept   Acct Balance Type Relative Period   Currency Amount Type   C C C         A 01 100 5740 A CurrentPeriod USD PTD * C L C         B 01 999 SQFT A CurrentPeriod STAT YTD / C S C         C 01 999 SQFT A CurrentPeriod STAT YTD   C L C         T 01 999 5740 A CurrentPeriod USD PTD   C C C         O 01 100 5740 A CurrentPeriod USD PTD ThisisthesameMassAllocationasinthepreviousexample,exceptthecostpoolisdifferentfromtheoffsetaccount.WhenyourunthisMassAllocationformulaforanaccountingperiodwitharentcostpoolof$100,000,youproduceajournalentrythatlookslikethefollowing: debit01-101-5740.......45,000RentExpense-Dept101 debit01-102-5740.......30,000RentExpense-Dept102 debit01-103-5740.......25,000RentExpense-Dept103 credit01-100-5740.......100,000RentExpense-Dept100 Now,assumethatlateryouwanttoreallocatearentcostpoolincreasedby$10,000toatotalof$110,000.WhenyourunthesameMassAllocationformulainincrementalmodeforanaccountingperiodwithacostpoolof$110,000,GeneralLedgeronlyallocatestheadjustmenttothecostpool,or$10,000.Thisproducesthefollowingjournalentry: debit01-101-5740.......4,500RentExpense-Dept101 debit01-102-5740.......3,000RentExpense-Dept102 debit01-103-5740.......2,500RentExpense-Dept103 credit01-100-5740.......10,000RentExpense-Dept100 Afteryoupostthisjournalentry,thebalancesinyourrentexpenseaccountsare: 01-101-5740.......49,500RentExpense-Dept101 01-102-5740.......33,000RentExpense-Dept102 01-103-5740.......27,500RentExpense-Dept103 01-100-5740.......110,000RentExpense-Dept100 Nowassumethatlateryouwanttoreallocatearentcostpooldecreasedby$30,000toatotalof$80,000.WhenyourunthesameMassAllocationformulainincrementalmodeforanaccountingperiodwith$80,000ofrentexpense,GeneralLedgerproducesthefollowingjournalentry: debit01-100-5740.......30,000RentExpense-Dept100 credit01-101-5740.......13,500RentExpense-Dept101 credit01-102-5740.......9,000RentExpense-Dept102 credit01-103-5740.......7,500RentExpense-Dept103 Afteryoupostthisjournalentry,thenewbalancesinyourrentexpenseaccountsare: 01-101-5740.......36,000RentExpense-Dept101 01-102-5740.......24,000RentExpense-Dept102 01-103-5740.......20,000RentExpense-Dept103 01-100-5740.......80,000RentExpense-Dept100 PostingtheresultingincrementalMassAllocationjournalentryhasaneteffectofreplacingtheexistingtargetbalancewiththeallocatedamountsfromA*B/C. Warning:WhenusingMassAllocationsorMassBudgeting,useaccountsthatreceivealloftheiractivitysolelyfromincrementalandregularMassAllocationsandMassBudgeting.ThisensuresthatGeneralLedgerusesanaccuratetargetbalancefortheincrementalallocation.       Previous  Next       Contents  Index  Navigation  Glossary  Library