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How does Ledger Allocation Rule - Allocation Method (Fixed Weight) work? Can someone illustrate this with an example?
Fixed weight is used to allocate a balance from one ledger account to others based on a fixed weight or amount. For example, you could allocate HR benefit costs based on each department's number of employees. You can find this example set up in the new demo data.
You need to specify a soure, e.g. Main account 602190 Employee benefit program expense
Then you define the Destination where to allocate to. Here you can define the Fixed weight e.g. number of employees per department you are allocating to.
Ledger Allocation Rule - Allocation Method (Fixed Weight)
for Fixed Weight allocation method a fixed amount is required to be specified for each location lines and that fixed amount gets allocted
user is required to do required calculation there own and what ever value specified gets allocation to the ledger
Let suppose you $1000 for ledger Department Expense, and you want it to be allocated to three department (Admin, Purchase and Sales)
and you dont have any specific rule for allocation and it is decides that you should allocate $127 to Admin, $603 to Purchase and remaining $270 to Sales
in this case you will set Ledger Allocation Rule - Allocation Method as 'Fixed Weight'
Please verify and update us if these explanation helps you.
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