Hi Anusha,
Period Allocation (categories) is found under General Ledger --> Ledger Setup --> Period Allocation categories.
With this functionality you can create period allocation categories.For creating these you can add a code, a name and whether it is fixed or not.
- The code, is used for allocating the allocation key to budget register entries or to accrual schemes which in turn can be allocated to several journals like an invoice journal and a daily journal.
- The name, this is just a friendly description of the period allocation category.
- Fixed, this determines how the start date of the period allocation is handled, checkmark on --> Start date is the beginning of the fiscal year, checkmark off --> start date is calculated from current date
After creating a period allocation code (or selecting an existing one) you can click on lines to see it's contents.
The contents actually tell you what the allocation basis should be, so for example if you seel icecream, you expect most of your revenue in the summertime, so most likely your period allocation would be:
- Month 1, 2,5%
- Month 2, 2,5%
- Month 3, 2,5%
- Month 4, 7,5%
- Month 5, 15%
- Month 6, 20%
- Month 7, 20%
- Month 8, 15%
- Month 9, 7,5%
- Month 10, 2,5%
- Month 11, 2,5%
- Month 12, 2,5%
If you select this key (in this case you would set fixed to yes) then all budget entries (cost / revenue) would be allocated according to this period allocation. Alternateively if I select the accrual scheme to which this allocation key is bound during regular postings I would get the same allocation.
Hope this clarifies it for you.
Best regards,
Ties Philippi
