Example: Allocating Expenses with Percentages

Chart of Accounts

You could set up an allocation account 99870 where unit code 1 is accessible and holds the department numbers for your company.

Chart of Account Allocations

You can then use the Chart of Account Allocations form to allocate the expense to different departments, based on percentages that you define. You would set up the Chart of Account Allocations form to contain these sequences and values for account 99870, unit code 1:

Allocation Account 99870

Sequence	Basis Type	Basis Rate	Distribution Account	Unit Code 1
1	Percentage	25.000	51551	100
2	Percentage	50.000	51551	300
3	Remainder	0	51551	500

In this rule, sequence 1 distributes 25% of the expense to department 100, using the distribution account 51551. Sequence 2 distributes 50% to department 300, and sequence 3 distributes the remainder (25%, but because you specified Remainder, it also includes any amount incurred from rounding) to department 500.

Journal Entries

This is the original journal entry for the expense:

Account	Debit	Credit	Comment
99870	10,000.00		Initial entry to allocation account
2000		10,000.00

This is the allocation entry that is generated during ledger posting:

Account	Unit Code 1	Debit	Credit	Comment
99870			10,000	Offset to initial entry
51551	100	2,500.00
51551	300	5,000.00
51551	500	2,500.00