Using Statistical Accounts to Allocate Expense Based on Headcount

For my example, I would like to allocate Employee Benefits, based on the headcount in the departments of my organization. Employee benefits when recorded are distributed to Ledger account 611090, with the department 1040 , which is the HR department.

First I have set up statistical accounts in AX, Ledger account 977777 is my Headcount account, with a fixed offset of 977778 – Headcount offset, which satisfies the need for a balanced entry. I have also set the accounts up as Main account type Balance Sheet, so that the balances roll forward into the new year and are not zeroed out during the year end close process.

I then created a General Journal to update the statistical accounts with Headcount.

After Posting this entry, the headcount account for each corresponding department is updated.

Ledger allocation Basis – describes what the allocation calculation is based on and defines in what proportion the source amounts are allocated to the destination distribution lines.

Because I want to allocate expenses based on the headcount, I have set up Basis rules for all of my Departments:

Each of these rules define the Headcount account and Department dimension that define how the allocation should be calculated.

Once I have defined the basis for each department, I am ready to create my allocation rule:

I have defined the source as Ledger account 611090 and department 3040, which is HR:

This tells the system to take whatever is in account 611090, department 3040 should be allocated to the destination accounts. Also, because I want the original amount to stay in the 611090 account where originally distributes to, I am putting in an offset account, so that allocated amounts are in 670030, so that the original amount remains intact.

Next I must define my destination accounts:

In the Ledger allocation rule destination form, I have added each of my Basis ID’s that I created for the Headcount accounts and designated the Allocation account I want the amounts distributed to, with the corresponding dimensions.

Once this has been done, I am ready to use my allocation, to do this, I will access the Process allocation request window from General Ledger >> Periodic >> Process allocation Request.

In my example, I have posted a bill for 50,000 for health insurance to Ledger account 611090, which needs to be allocated based on Headcount to the Benefits allocation account.

 After processing the allocation request (Proposal Only), I see that a journal has been created in the Allocation Journal:

Once this journal has posted, I will see that the balance in my Employee Benefits accounts has been allocated to the Benefits allocation account in the Ledger, leaving the original entry to 611090-03-3040-00 intact.

By Nobuko Lima, Finance Solution Architect – Arbela Technologies

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