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Ledger Allocation Rules - Use of Mathematical Calculations

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Posted on by BarryR

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Hello all -

Anyone set up a ledger rule where Mathematical Calculation is used? Looking for some examples of how to use this functionality. I would greatly appreciate any help that can be offered.

In my case I have a client that allocates group health expenses each month based on a calculation of $1,050 per headcount. They have 508 employees spread out over 20 departments. For the headcount portion I created a journal entry where headcount by department is debited to headcount with the credit going to headcount offset. So for example department A gets a debit of $10, department B is debited for $4 and so on. Is there a way to then build the allocation by multiplying, for example, department A's FTE value of 10 by the allocation rate of $1,050 and then use that result as a debit to the group health ledger expense account?

Regards.

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MATTGUO 22,351 Moderator on at

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Hi Barry,

The mathematical calculation is used to process the multiplication or division of source value.

For example, the source value is 1000, if you select the multiply by10, the total value could be allocated is 10000.

For your requirement, please try to use the fixed percentage/weight allocation method.

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Ludwig Reinhard Microsoft Employee on at

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Hello BarryR,

I think this rule might help but you have to know exactly what you want to achieve.

I made a simple example and posted two lines on a statistical account X with BU 001 and BU 002 (just ignore the department numbers)

I posted the 'headcount' of 1 and 2 on those accounts.

That's the ledger allocation basis used

And then I setup the ledger allocation rule

Source is the statistical account

Destination are two ledger accounts

If you process this rule you get something like that

So, in my case the headcount is multiplied by 1050 and this amount is then allocated to the accounts 601200 and 601400 based on the base (headcount).

You can easily setup something similar and test this setup by making sure that you select 'proposal' only when you execute the allocation request.

Best regards,

Ludwig

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BarryR 330 on at

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Thanks for your response MATTGUO

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BarryR 330 on at

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I'll try this, thanks for your response Ludwig.

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