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Fixed Alocations

  • 1.  Fixed Alocations

    Posted 22 days ago
    ​I have posted this before with no answers, $0 to the person who gives a good solution!

    We, like most, use fixed allocations frequently.  Other systems I have used have a way to track these to tell what is being allocated and to make sure the allocations are working correctly.  Usually through either reports or even a sub-ledger.  In GP cannot get the breakout unless I look for patterns in the cost and no indication if it was a manual allocation or it used the Fixed allocation account.

    For example, looking at a P&L and wanting to know of the Employee Salaries that hit a specific units P&L, how much was the amount of allocated Employee Salaries and where did it come from?  (Any line that could get an allocation would work though.)

    Any ideas on how to solve this problem?

    Thanks in advance,
    MC

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    MC
    Houston TX
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Fixed Alocations

    TOP CONTRIBUTOR
    Posted 22 days ago
    HI MC,
    Are these entries direct GL Entries or it comes from subsidiary?

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    Gerald Buenafe
    Owner/Consultant
    BTP Technologies LLC
    CHANTILLY VA
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: Fixed Alocations

    Posted 21 days ago

    ​Gerald,

    Mostly payable entries (expenses) but also payroll allocations (Payroll related to Dept X is spread to P&L 1 50%, 2 30%, and 3 20%) for example.  no subsidiary accounting.

    Best regards,

    MC



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    Mark Common
    CFO
    PBFCM
    Houston TX
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    Academy - Online Interactive Learning from Experts


  • 4.  RE: Fixed Alocations

    TOP CONTRIBUTOR
    Posted 22 days ago
    For every fixed allocation account, we create a subset of distribution accounts carrying the same sub account as the fixed allocation account.
    We would never distribute allocations directly into a posting account as that pollutes the balances in the direct posting account.
    We use Management Reporter to roll it all up as needed:
    Simplified Example:
    Insurance Allocation Account = 999-6190-99
    Allocation Distribution Accounts:
    Sales = 100-6190-99
    Admin= 200-6190-99
    OPS  = 300-6190-99
    Techs = 400-6190-99
    The direct posting accounts would be:
    Sales = 100-6190-00
    Admin= 200-6190-00
    OPS  = 300-6190-00
    Techs = 400-6190-00


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    Thaddeus Suter
    Retus, Inc
    HELOTES TX
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    Academy - Online Interactive Learning from Experts


  • 5.  RE: Fixed Alocations

    Posted 21 days ago
    If you have SmartList Builder, there is a Fixed Allocation Accounts one you can import that might be able to help you out. Go to tools, SmartList Builder, Import, Import from web, Financial Series, check Fixed Allocation Accounts SmartList Builder, and import it.

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    Ashley Robinson
    Charleston County Aviation Authority
    North Charleston, SC
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    Academy - Online Interactive Learning from Experts


  • 6.  RE: Fixed Alocations

    GPUG ALL STAR
    Posted 21 days ago
    Hi Mark,

    I'm going to assume you are referring to the actual "Fixed Allocation Account" type of account in GP for this answer.

    You are correct that there is no record of that account being used once the entry is posted, as on posting, the FA Account functionality calculates the proper distributions and "changes" it to the real accounts immediately. That can cause issues if you want traceability especially if your FA Account percentages change from time to time.

    There are 3 things I can think of, none of which are perfect though.

    What I have recommended to others is post through a clearing account. It's double the work, I admit, but post it to say Payroll Allocations, with a regular GL account, and then do an entry to say DR your "payroll allocations" FA Account, CR Payroll Allocations to clear it out so you have a little more visibility. It still won't show you %'s but you'll know exactly what entries used the FA account.

    The other idea would be possibly consider using a different source document if you can - which is an option if these are GL entries, but as you mentioned sometimes it's A/P this may not work. In the GL the default source document is GJ, but you can add more. I don't recommend adding a ton but at times I have recommended clients added ones like YE Adjustment to more easily pull out adjusting entries. For this you could have a type that is GJ FA or something - indicating the use of an FA account. This is not without issues as all it takes is someone to forget to change the source doc field and you've missed one.

    The last option would be to consider an audit trail type of solution or triggers to literally track this. For instance you could track only journal entries that contain a distribution to an FA Account type of account, and record the GL accounts before and after posting which should equate to the FA Account and the distributed GL Accounts. This is more technical of course and requires either an ISV product or SQL skills to develop and test some triggers and tables to track it.

    That's all I've got... I hope something in there may give you other ideas to run with.

    Jen

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    Jen Kuntz, CPA, CGA, Microsoft MVP (Business Applications), GPUG All-Star

    Independent Consultant
    Kuntz Consulting Inc.
    Cambridge, ON, Canada
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    Academy - Online Interactive Learning from Experts


  • 7.  RE: Fixed Alocations

    GOLD CONTRIBUTOR
    Posted 18 days ago
    @Mark Common   Just to throw it out there.....  We have an allocation product that does allow for all the proper tracing throughout as we too had clients who weren't 100% happy with the std functionality.   I know you can do what you "need" to in std GP, so it may not be a necessary solution, but figured i'd let you know about it anyway.     If you have any questions, please let me know. ​      https://paradigmtechnologyconsulting.com/microsoft-dynamics-gp/enhancements-for-dynamics-gp/        https://paradigmtechnologyconsulting.com/wp-content/uploads/2019/11/Dynamics-GP-Allocation-Schedule.pdf

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    Michael Gummel
    Prod Engineer
    Paradigm Technology Consulting
    Allentown NJ
    mgummel@ptcllc.com
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    Academy - Online Interactive Learning from Experts


  • 8.  RE: Fixed Alocations

    Posted 17 days ago
    Hi Mark,

    We use Fixed Allocation for our admin payroll. The AP clerk that I have is great about keeping a set format for document number and description, so I can tell based on the description and source document that it is the admin payroll. Also, our admin payroll is entered by itself. There is no other department entered with it, so I can look at an entry and know that it was the admin payroll. Doing this allows me to see how much was enter for each department and what was entered for the source document. I usually am not asked for the admin allocation of how much of each department payroll is for admin. In the past, when I have been asked about it with the P & L, but I was given time to look it up.

    If I wanted the information for reports. I would use subaccounts. I did this for our camp's COGS. I used subaccounts, so that I could make KPIs showing how much was spent for each expense type. For the P & L, I needed to know what the total was and didn't need the breakdown. I just wanted a way to pull numbers and make reports without having to dig for the information. The way we do the admin payroll would take more time then if I just posted the admin payroll to subaccount of the department's payroll. I believe Thaddeus Suter does something similar to this for his payroll. 
    Hopefully this is helpful,


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    Heather Emrick
    Naval Aviation Museum Foundation
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    Academy - Online Interactive Learning from Experts


  • 9.  RE: Fixed Alocations

    TOP CONTRIBUTOR
    Posted 17 days ago
    If you want to make sure the allocations are absolutely perfect and can be easily traced,
    you can wait until the end of the month to do the allocations, and allocate only the monthly totals.
    At our company we used the 9000 series of accounts for these allocations.
    We would credit a summary expense account with say GL Account 000-9010,
    and the credit would be an allocation account that goes to say GL Accounts 100/200/300-9011.
    We used department 900 to signify it was an allocation account.
    This means that the total of all the 9000 accounts would always be zero.

    Let me know if you wish to see screen shots and further explanation of this approach.

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    Bruce Strom
    Programmer Analyst
    Paradise GP Consulting, Inc.
    Sunrise FL
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    Academy - Online Interactive Learning from Experts


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