Kinetic Advanced

Allocations User Guide

Version 2023.1
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Table of Contents

Setup 4

Creating Allocation Codes 5

Adding a Transactional Allocation Code (Fixed Value) 5
Add an Allocation and Define its General Parameters 5
Adding Source Accounts 7
Adding Target Accounts 8
Adding a Transactional Allocation Code (Formula Based) 11
Setting Parameters and Formula 13
Creating Allocation Batches 16
Entering an Allocation Batch 16
Adding an Allocation Batch Code 17
Generating a Schedule 17
Creating GL Account Allocations 20

Operations 22

Running the Generate Allocations Process 23

Tracking Allocation History 25

Running the Reverse GL Allocations Process 27

Reports 28

Printing the Process GL Allocations Edit List 29

3 March, 2023
Setup
This section describes the primary records you need to create for general ledger allocations processing.
These apps are contained within the Setup folder of the General Ledger module. Only the primary
records are described here. Some areas within the next Operations section may also document setup
records if they are required for a specific workflow.

You may also need to set up some parameters within the Company Configuration app. Some modules
have global settings you define through this administration app.

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Creating Allocation Codes
In Allocation Code Maintenance, enter allocation codes and define settings for each code. You can use
each allocation code within a specific general ledger book. You indicate whether each allocation code
disperses amounts through a fixed value or a formula you create. Each allocation code can also be
assigned to a tier level that indicates at what point in the process its allocation routine will run. To track
the transactions generated by each allocation code, you assign specific stamps that appear next to the
allocation transaction on various reports and trackers.

Use the landing page of the application to view existing allocation codes or to enter a new one.

In this article, we will cover:

l Adding a transactional allocation code (Fixed Value)

l Adding a transactional allocation code (Formula Based)

Adding a Transactional Allocation Code (Fixed Value)

Add an allocation code that is transaction based and has a fixed value ratio set to allocate 100% of its
source data criteria.

In this scenario, enter the default purchase expense account as the source data criteria for the
allocation. Enter three target accounts that use the same default expense account but are associated
with different general ledger (GL) departments. As a result of this workshop, transactions that affect the
source account data (default purchase expense account) are allocated to three GL departments.

Add an Allocation and Define its General Parameters

1. From the main menu, navigate to Financial Management > General Ledger > Setup >
Allocation Code.

2. Select New to add a new allocation code.

3. Enter the Allocation Code identifier.

4. Enter a Description. Enter a concise explanation that helps you quickly understand the allocation
code purpose.

5. Select an Allocation Type. Available options:

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 l Transactional - The source data originates from general ledger transactions.
l Balance-Based - The source data originates from account balances.
6. Next, select a Book for which this allocation code will disperse amounts. By design, allocations
are restricted to disperse amounts within a single book. When multiple allocation codes are
processed through an allocation batch, these codes all must share the same book.

7. If you need, select the Offset GL Account. This account stores the amount values used before the
allocations are generated; you use this account to record the total amounts you allocated during
the process and to offset the original balances without zeroing out the accounts. When you select
an offset account, its Description value displays as well.

8. For the Ratio Setup Option, select Fixed Value. This defines a set value for each allocation
amount. The total amount is divided evenly using this starting fixed value.

9. Enter the Percentage To Allocate value for this code. This value indicates how much of the
source amounts are available to allocate through this code. The default is 100 percent, indicating
all source amounts will be spread across multiple target accounts.

10. Optionally, select the Use Allocation Units check box to indicate whether allocation units or
percentages are used to calculate amounts through this allocation code. If you select this check
box, you then assign units to each target account that receives amounts from the sources. For
example, your Percentage to Allocate is 100%, and you will distribute amounts between three
target accounts. Each target account has 50 allocation units, which indicates each account
receives 33.33% of the total source amount.

11. Enter a number in the Tier field. This value defines the level, or tier, for this allocation code.
When this allocation code is processed, all codes assigned to Tier 1 allocate their amounts first.
Then the generated allocations are further distributed through the codes assigned as Tier 2, and
the process continues through all the tiers you define on the allocation codes. The journal details
generated at each earlier tier level are available on subsequent tier levels.

12. Enter the Target Allocation Stamp. This value is placed on transaction details within the
receiving, or target, accounts for the allocation. You can then track which accounts received
allocation amounts through this code.

13. Define the Source Allocation Stamp for this code. This value is placed on transactions within the
original, or source, accounts from which the allocation amounts are pulled. This makes sure the
allocation amounts are not allocated again by mistake.

14. Use the fields in the Stamped Transactions area to identify which higher tier allocation results
you want to use for this allocation. Leverage this functionality when the allocation code is a level
2 or higher tier. You can decide not to use the previous stamp by selecting the Exclude check box.

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 You can also use all of the previous stamps by clicking the Include All check box or select a
specific stamp from the Allocation Stamp drop-down list.

15. Select Save.

Adding Source Accounts

You next define the source accounts from which you want to allocate amounts. You can allocate
amounts from four sources - Account Categories, Journal Codes, GL Account Masks, and Account
Segment Ranges.

Use these types in tandem to filter the sources from which the amounts are pulled. When you select
multiple categories, for example, the application pulls amounts from all of the categories you select on
this card. If you use both a category and a GL account, however, only those sources that share both the
category and the GL account are used as sources during the allocation process.

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 Technically, these items either have an “AND” or an “OR” relationship. When you select
multiple sources from the same type (for example, journal codes), the application views
these items as sharing an “OR” relationship - all sources that use Category A or Category B
are used. When you select multiple sources from different types (journal codes and
categories), the application views these items as sharing an “AND” relationship - all
sources that use Journal Code 237 and Category A are used.

1. Notice you can create difference sources - New Source Account Category, New Source Journal
Code, New Source GL Accounts/Masks, and New Source Segment Range.

2. To create a new source GL Accounts/Mask, select New on the GL Accounts/Mask card. Select
the GL Account or mask you wish to use. Financial transactions for this allocation code originate
from this source account.

3. If your source amounts will be pulled from account categories, you define these items on the
Account Categories card.

4. If you indicated you will pull source amounts from journal codes, you select these codes on the
Journal Code card. This functionality only works with Transaction based allocations.

5. If you will pull amounts from a range of account segment values, you define these segments on
the Ranges card.

6. Continue to add the account masks, account segment ranges, journal codes, and categories as
you need. When you finish, select Save.

Adding Target Accounts

On each allocation code, you enter a fixed list of target accounts (the accounts between which the
source total amount will be divided) and the ratios that define the proportion to divide.

Define target accounts as fixed account codes by entering segment values. Alternatively, you can inherit
some segment values from the source account.

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Define allocation ratios either as fixed values or as formulas. In order to support entry of formulas, a
mechanism for parsing and validating formulas exists. Each formula you enter must consist of basic
arithmetic operators and use the following operands:

l Fixed values
l Balances of specific GL accounts (including accounts other than the source and target accounts)
l Non-financial data from existing Lookup Tables
l Balances summed up across several GL accounts
To add a target account:

1. On the Target Accounts card, select to add a new target account.

2. After you select the account name, the Account Description displays, explaining the purpose of
the account. You cannot change this value. If you entered a GL account mask, this field is blank.

3. The Ratio Setup Option indicates whether this allocation code disburses amounts using a Fixed
Value or a Formula. You defined this value when you first set up the allocation code; in this
example, Fixed Value displays.

4. If you selected the Use Allocation Units check box on the Detail card, the Allocation Units field
is available. Use this field to enter how many units of the source amounts will be assigned to the
current target account.

For example, your Percentage to Allocate is 100%, and you will distribute amounts between three
target accounts. You enter 50 allocation units in the Allocation Units field on each target account,
which indicates each target account receives 33.33% of the total source amount.

5. The Units field displays the total number of allocation units currently assigned through this
allocation code. As you enter more units on other target accounts, this total number increases.

6. If you do not use allocation units, the Percentage Value field is available. Use this field to define
the total allocation amount this target account will receive. In this example, you enter 30 in this
field, which indicates this target account receives 30% of the 65% amount distributed from the
source amounts. You will have 35% left from the allocation percentage to distribute to other
target accounts.

7. The Percentage field displays the total Percentage To Allocate value you entered on the Detail
card. This value indicates how much of the source amounts are available to allocate to the target
accounts you define on this sheet. In this example, 25% percent displays in this field.

8. Select the Multi-Company check box to allocate to a GL account in an external company

connected via the multi-company functionality. If you selected the Multi-Company check box,

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 select the required External Company from the drop-down list.

9.
The Multi-Company license is required to make use of this feature.

10. Enter the External G/L Account, or select the search icon to find and select the account.

11. Once you select an external company, the Target Account automatically populates with the
default local account.

12. Select the Override check box if you want to enter an alternative local account in the Target
Account field.

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 13. Continue to add the target accounts that will receive allocation amounts through this allocation
code. When you finish, select Save.

Adding a Transactional Allocation Code (Formula Based)

Allocation codes can also distribute amounts through one or multiple formulas you define. Each
formula you enter must contain the arithmetic operators and operands needed to complete the
expression. The available operands are fixed values, balances of specific GL accounts, non-financial
data, and summary balances generated across several GL accounts. Select the operators and define the
operands you need to create the formula you will run through this allocation code.

To distribute amounts using a formula ratio:

1. Create a new Allocation Code as described previously.

2. In the Detail card, from the Ratio Setup Option drop-down list select Formula.

3. After you finish entering all the other options you need, on the Formula Parameters card, select
the New button.

4. Enter the unique Name and concise Description you need for this formula parameter.

5. From the Type drop-down list, indicate what kind of parameter will be used with this formula.
The value you select here determines what cards are available under the Formula Parameters
tab . Available options:

l Account Balance - The formula uses the total account balance to calculate the allocation
ratios.

l Summarized Balances - The formula totals a series of items to calculate the allocation
ratios.

l Non-financial Data - The formula pulls in values from Look-Up tables and fields in order to
generate the amounts it needs to disperse between the target accounts.

l Business Activity Queries (BAQ) - A BAQ is a query tool that pulls in specific data views
you define. When you select this type, you must select the BAQ that will be used to pull in
this information.

You create and modify BAQs through the Business Activity Query Designer.
For more information on how to leverage this tool, review the Business
Activity Queries chapter in the ICE Tools User Guide.

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 6. If you select the Account Balance type, the GL Account field activates. Use this field to find and
select the GL account whose balance is used for the receiving target accounts.

7. If you select the Account Balance type, you can optionally select the Use Target Account check
box to indicate the balance received by the target accounts will be used to disburse amounts
calculated through this formula.

8. Likewise, if you select the Account Balance type, select an option from the Use as Parameter
Value drop-down list to indicate what item will be used as the parameter to gather data for the
allocation formula. Available options:

Account Balance - This parameter holds the total amount available in the account.

Debit Turnover - This parameter holds the debit amount that will be distributed through this
allocation code.

Credit Turnover - This parameter holds the credit amount that will be distributed through this
allocation code.

9. If you select the BAQ type, click the BAQ button to find and select the business activity query
from which you will pull in financial data.

10. Select Save.

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Setting Parameters and Formula
Your selection from the Type drop-down list on the Formula Parameters Detail card also affects what
items are available for you.

Summarized Balance

If you select the Summarized Balances type, a number of summarized options are available for you to
select (for example, New Summarised Range). These summarize options match the data you can use for
source amounts - account categories, journal codes, GL accounts/masks, and ranges of segment values.

Non Financial Data

If you select the Non-Financial Data type, you can use the lookup table that holds the non-financial
data you need.

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 1. Navigate to the Formula Parameter Detail > Non-Financial card, and from the Lookup Table
drop-down select the table.

2. Select the Get Source Records button to pull in all of the records linked to the selected table
and field.

3. The Source Fields grid displays the non-financial data for your allocation formula.

When you finish setting up your formula parameters, navigate to the Target Accounts Detail card. Use
the Formula Criteria field to enter the criteria expression you need to run against the parameters you
have defined. You can enter these values directly.

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You can also right-click this field to display a context menu; use this context menu to select the values
and operators you need. To verify the formula will compile when it runs, click the Check Syntax button.
A message box displays indicating the allocation code formula is correct.

Continue to add the allocation formulas you need. When you finish, select Save.

15 March, 2023
Creating Allocation Batches
In Allocation Batch Entry, define batches of allocations to generate simultaneously. Also, you can
schedule allocations within this app.

Each batch defined in Allocation Batch Entry must have a unique code and be kept as a persistent
entity. Once you manually add allocation codes to a batch, the codes are kept as a list on the batch
entry. A single batch can only contain allocation codes entered for the same general ledger (GL) book.

Once you create a batch and assign allocation codes to that batch, from the Overflow menu, select
Generate Schedule to generate an allocation run schedule (similar to the scheduling system that exists
for recurring journals). If necessary, schedules can be deleted; however, without a schedule, an
allocation cannot be generated.

You can also reverse an allocation batch automatically by selecting the Reverse check box on the Detail
card. This notifies the application that the current batch should always have its allocations reversed.

In this article, we will cover:

l Entering an Allocation Batch

l Adding an Allocation Batch Code
l Generating a Schedule

Entering an Allocation Batch

1. From the main menu, navigate to Financial Management > General Ledger > Setup >
Allocation Batch.

2. Select New to add a new batch.

3. Use the Batch ID and Description fields to identify an allocation batch.

4. In the Book field, select a GL book. The fiscal calendar linked to the GL book displays in the
Calendar field.

5. Select a journal in the Journal field.

6. Optionally, select the Reverse check box to set up the allocation batch to always be reversed
automatically.

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 7. Select Save.

Adding an Allocation Batch Code

1. Select New in the Allocation Code card to add a new code.

2. In the Allocation Code field, select an allocation code.

3. Select Save.

Generating a Schedule
1. From the Overflow menu, select Generate Schedule.

2. In the Fiscal Year field, verify the current calendar year displays.

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3. Select Generate. A message displays to inform you how many schedules were created.

4. To the message, say OK.

5. Go to the Allocation Schedule card.

The current fiscal period is the only period with a status of Scheduled. To schedule
additional periods, in the row of the period you want to update, select the
Scheduled check box.

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6. Select Save.

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Creating GL Account Allocations
GL Account Allocation Maintenance defines how to distribute periodic expenses and revenues among
accounts in a book.

A company contains at least one book to track general ledger (GL) transactions, and GL account
allocations regulate how much of these amounts, or allocation units, post to various journals. Typically,
you use allocations to distribute expenses across divisions, organizations, departments, or projects
defined by a segment in the chart of accounts (COA) associated with the selected book. For example,
you divide rent, heating, and lighting expenses between departments, based on the amount of floor
space each uses. The allocation process creates an entry in GL Journal Entry, and this entry posts the
allocation.

To define an allocation, select the book to which the allocation posts. Then designate the account from
which the allocation amount originates, the accounts to which the amount distributes, and the basis of
the allocation.

Allocations can extend inter-company processing. Inter-company processing updates multi-company

accounts defined in the COA of a parent company and its subsidiaries (child companies). You can select
a multi-company account as the account from which the allocation amount originates. As a result, the
multi-company journal creates allocation journals within the book.

Use the landing page of the application to view existing GL account allocations or to enter a new one.

In this article, we will cover creating a new GL account allocation.

1. From the main menu, navigate to Financial Management > General Ledger > Setup > GL
Account Allocation Template.

2. Select New to add a new allocation.

3. Use the Allocation ID field, the Description field, and the Basis field to identify the allocation.
Examples of basis include Sq. Feet and Equal, used when the allocation is divided equally among
the distribution accounts. Application processes use the identifier. The description appears in
Journal Entry, used to book allocation journals. The basis provides information for program users
and has no effect on how the application processes the allocation.

4. Use the Book icon and the Account search icon to find and select the account from which the
allocation amount originates. Selection of the book limits entry of accounts to general ledger
accounts in the COA associated with the book.

Allocation Template does not allow to enter Stat Only GL accounts.

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5. Select Save.

6. In the Lines card, select New Line to add a new allocation line.

7. In the G/L Account field, enter an account to which a portion of the allocation amount is
distributed. The book that contains this account can differ from the book from which the
allocation originates.

8. In the Allocation Units field, enter an amount that defines the distribution of the allocation. The
application uses allocation unit entries to calculate percentages used in distributing the
allocation.

9. Select Save.

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Operations
This section details the operations you can run to process general ledger allocations. Each operation is
described as a workflow to help guide you through the process from start to finish. These app are
primarily found within the General Operations folder for this module. If a unique setup record is
required to run the operation, this record is also described in this section.

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Running the Generate Allocations Process
Run the Generate Allocations process to write allocations to the general ledger (GL) or to simulate an
allocation run. Allocation batches are run for a specific GL book and a specific fiscal period from the
book's calendar.

The application generates selected allocations in order of tier level (for example, first all of Tier 2, then
all of Tier 2, and so on) and creates a report that contains the allocation transactions. The report
displays in a report style similar to an edit list.

You have the option to simulate an allocation generation. On the Generate Allocations sheet, select the
Simulate check box to indicate a simulation generation. A simulation generation does not affect the
general ledger. When you generate allocations in simulation mode, the allocation transactions post to a
separate set of tables (GLJrnDtlSim) instead of the actual GL tables. The simulation mode does not
affect the process of calculating allocations or generating transactions in any way.

A journal number is still assigned to a simulated transaction; however, the number of the
simulation mode journal is based on the GLJrnDtlSim table.

The Selection parameters include:

l Book - Specify the GL book for which you wan to generate allocation batches.
l For Period - Select this option to indicate that allocation batches should be run for the specific
year and period. It activates the Year, Year Suffix,and Period field.
l For Dates Range - Select this radio button to specify that the selected allocation batches should
be run for the specific interval of dates. It activates the Start Date and End Date field and sets
the Apply Dates Option to Manual.
l Year - Specifies the fiscal year to select allocation data. By default, this field is determined based
on the current date and the calendar of the selected book. You can change it to any valid value
within the calendar. Once you change the fiscal year, the Start and End Dates are automatically
assigned to the start and end dates of the selected year.
l Suffix - Specifies the fiscal year suffix to further describe the year.
l Period - Specifies the fiscal period of the fiscal year. By default, this field is determined based on
the current date and the calendar of the selected book. You can change it to any valid value
within the calendar. You can select closing periods along with the regular ones. The closing
period number follows the last regular period number (for a year with 12 periods, the closing
period is 13). Once you change the fiscal period, the Start and End Dates are automatically
assigned to the start and end dates of the selected period. For closing periods, both dates display
the last day of the fiscal year.
l Start Date - Displays the starting date used for selecting allocation data. If you selected the For

l End Date - Specifies the ending date used for selecting allocation data. If you selected the For

l 23specify that allocation data selection

Year-To-Date Allocation - Select this check box to March, 2023
starts at
To generate the report:

1. From the main menu, go to Financial Management > General Ledger > General Operations >
Generate Allocations.
2. Select the process parameters.

3. Select Process.

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Tracking Allocation History
View, for a specific period, all of the resulting general ledger (GL) transactions created by applying
allocations in Allocation History Tracker. Allocation History Tracker stores all allocation transaction
information and provides references to the source data. The history also keeps track of all allocation
runs with dates and user IDs. The system groups the allocations by batches and tiers. You can specify
whether you want to view actual GL transactions or simulation transactions.

You can also reverse transactions written to the GL in prior allocation runs by using the
Reverse Allocation Run command.

You can find more information about the tracker interface in the Understanding Trackers
article.

To use this tracker:

1. From the main menu, go to Financial Management > General Ledger > Allocation History
Tracker.

2. Select Batch Code from the Allocation Runs grid on the landing page.

3. Review a list of transaction details and parameters for a selected allocation run in the GL Details
card.

4. Select the record in the Allocation Code column to review parameters.

This card displays information about account parameter value, actual calculated
value, BAQ ID, parameter name, and target account.

5. Review a list of all allocation codes that are included in the batch used in the selected allocation

25 March, 2023
run in the Allocation Codes card.

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Running the Reverse GL Allocations Process
Run the Reverse Allocation Run Process to reverse general ledger (GL) allocation transactions.

When the process completes, the allocations are reversed from your general ledger. The
original entries remain for your reference, and display on various trackers or reports. You
can return to Allocation Code Maintenance and Allocation Batch Entry to modify the
allocations as needed. You can then run Generate Allocations to create the allocation
transactions.

To run the process:

1. From the main menu, go to Financial Management > General Ledger > General Operations >
Allocation History Tracker.
2. Define the Book, Fiscal Year, Start Period, End Period, and Run Type settings.

3. From the Overflow menu , select Reverse Allocation Run.

4. Define the Reverse Date. All allocations run on this date are reversed from the general ledger.
5. Select the process schedule. Indicates when you want to run the process. If you select something
other than Now, the Recurring check box becomes available.
6. Select Recurring, if needed. Select this check box if you want the process to run on a repeating
basis. The check box is only available if you select the schedule other than Now.

7. Select Process.

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Reports
This section describes some key reports used to review asset transactions. You can run these reports
whenever needed.

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Printing the Process GL Allocations Edit List
Print the GL Allocations Edit List to review and print allocations that you want to write to the general
ledger (GL).

The Selection parameters include:

l Report Style - Select the report style option you want to use to run this report.
l Schedule - Indicates when you want to print the report. If you select something other than Now,
the Recurring check box is available.
l Archive Period - Time period you want to keep the report in the System Monitor. The default is 0
Days, meaning that the report will be deleted from the monitor shortly after being printed.
After the Archive Period passes, the report is purged from the system. When a report is exactly
purged is determined by a combination of the date/time the report generates, the number of
days set in the report's Archive Period, and the Report Purge Frequency setting. The Report Purge
Frequency is defined in the System Agent within its Task Agent Purge Settings.

l Recurring - Select if you want the report to run on a repeating basis. The check box is only
available if you select a schedule other than Now.
l User Description - Describes a specific report run. The entered description displays in the System
Monitor.
To print the Edit List:

1. From the main menu, go to Financial Management > General Ledger > General Operations
> Generate Allocations.
2. Select the Generate Allocations parameters.

3. From the Overflow menu , select Edit List.

4. Select the Edit List parameters.

5. Select Print Preview.

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