Allocation Codes - Method Tab

You must have installed the Payroll module to use the Employee Headcount and Labor Hours calculation methods. It is not available for Payroll Link users.

If the Table method was selected, the system displays the table version of this tab.

IC Cap - The Indirect Cost Limit Calculation GL Accounts only apply if the “Use indirect cost limit cap” check box is selected on the Allocation tab. This group box is used to select the GL accounts used in combination with the Codes to Allocate To segments and the Indirect Cost Rate information (segment, IC Rate, ICR Begin Date and GL Account Entry Code) entered on the Recipient tab to calculate the indirect cost limit cap.

Table: The system only displays codes that were assigned to the allocation segment. Your choices for allocation are units, monetary amounts, and percentages. Rows can be moved up and down to determine which amount to apply first. A row can have zero amount for percentage or units and amounts across the row. This allows you to designate the codes that apply to the specific allocation without creating a new allocation code with less Recipient allocation segment codes. A row can have a combination of Percentage and Amounts, Units and Amounts, Percentage only, Units only, or Amounts only.

During transaction entry calculation, the system first allocates the monetary amounts in the order in which they were entered in the table. Any remaining amount is distributed according to percentages.

A row can have zero values for percentage, units and amounts across the row. This allows you to designate the codes that apply to the specific allocation without creating a new allocation code with fewer Recipient allocation segment codes.

Indirect Cost Limit Calculation GL Accounts Available, Selected, Status, Title: In the Available column, select the GL account codes to be assigned for the Use indirect cost limit cap calculation. Click the Mover (>) to move the codes to the Selected column. This calculation is only required and used when the "Use indirect cost limit cap" check box is selected on the Allocation tab.

If the Indirect Cost Rate method is selected, the system displays the indirect cost rate version of this tab.

The Indirect Cost Rate method allocates indirect costs by multiplying the indirect cost basis (amount derived from recipient allocation segment codes and IC amount calculation GL accounts) by the indirect cost rate. Non-allocation segment codes are based on the Pool segment codes. The offset entry is made against the Pool segment codes regardless of the amount of the Pool balance. The basic Indirect Cost Rate methodology is:

Indirect Cost Basis allocations are distinguished from other allocation methods in that the Recipient information dictates the final direction (debits or credits) of the allocation entry instead of the Pool information.

IC Cap - When using "Indirect cost limit cap" in conjunction with the Indirect Cost Limit method, the system uses the same IC Amount Calculation GL Accounts for both the cap and regular calculation. The ICR Begin Date specified on the Recipient tab is the key to distinguishing the regular calculation from the cap calculation.

Indirect Cost Rate Table {Segment Name}, Title, IC Rate: The system displays the segment codes (along with their title and IC rate) that were entered on the Recipient tab.

IC Amount Calculation GL Accounts Available, Selected, Status, Title: In the Available column, select the direct cost GL account codes, along with their status and titles that the Indirect Cost Rate is applied to. These are the GL accounts in relation to the Balances From and Balances To amounts times the indirect cost rate. Click the Mover (>) to move the codes to the Selected column. More than one GL Account code can be selected.

If the Relative Account Balances method is selected, the system displays the relative account balances version of this tab.

The system allocates the Pool Balances to the Recipient segments based on a percentage from the relative account balances found in the recipient segments in combination with the GL Accounts specified on this tab. The date range for the calculation is defined using the Balances From and Balances To dates on the Activities>Process Allocations>Allocation Codes tab.

Relative Account Balances GL Accounts Available, Selected, Status, Title: Select the GL accounts to use as the basis to calculate the relative account balances (total monetary amounts for all GL accounts by each code, divided by the total amounts for all codes, equals the allocation percentage target for each code). Click the Mover (>) to move the codes to the Selected column.

Filter Available, Selected: The list includes all segments except GL and the Allocation Segments selected on the Allocation tab. The filter applies to the selection of data related to the calculation of the Relative Account Balances percentages. To filter data, first select an item in the Available column, and click the Mover (>) to move it to the Selected column. Once an item is displayed in the Selected column, set up its filtering criteria. Then, the information is limited to the data that falls within the filter criteria designated.

If the Weighted Average Daily Balance method is selected, the system displays the weighted average daily balance version of this tab.

The system allocates the Pool Balances to the Recipient segments based on a percentage from the relative account balances found in the recipient segments in combination with the GL Accounts specified on this tab. The relative balances are then weighted on a daily basis over a period of time. The date range for the calculation is defined using the Balances From and Balances To dates on the Activities>Process Allocations>Allocation Codes tab. For example, you can distribute interest payments to multiple segments in this manner.

Weighted Average Daily Balance GL Accounts Available, Selected, Status, Title: This method calculates the receipt code percentages by the receipt code's balance on a daily basis, weighted over a period of time. You can indicate the period to allocate using the Activities>Process Allocations>Allocation Codes tab. For example, you can distribute interest payments to multiple segments in this manner.

In the Available Codes column, select the account codes, along with their status and titles to use as the basis to calculate the allocation. Click the Mover (>) to move the codes to the Selected column.

Filter Available, Selected: The list includes all segments except GL and the Allocation Segments selected on the Allocation tab. The filter applies to the selection of data related to the calculation of the Weighted Average Daily Balances percentages.To filter data, first select an item in the Available column, and click the Mover (>) to move it to the Selected column. Once an item is displayed in the Selected column, set up its filtering criteria. Then, the information is limited to the data that falls within the filter criteria designated.

If the Employee Headcount method is selected, the system displays the employee headcount version of this tab.

The system allocates the Pool Balances to the Recipient segments based on a percentage from the relative number of employees found in the recipient segments over a period of time. The date range for the calculation is defined using the Balances From and Balances To dates on the Activities>Process Allocations>Allocation Codes tab. Only employees associated with payrolls that have been transferred to accounting (Activities>Payroll>Transfer to Accounting) are counted. Voiding checks does not remove an employee from the count.

Filter Available, Selected: The list includes all segments except GL and the Allocation Segments selected on the Allocation tab. The filter applies to the selection of data related to the calculation of the Employee Headcount percentages. To filter data, first select an item in the Available column, and click the Mover (>) to move it to the Selected column. Once an item is displayed in the Selected column, set up its filtering criteria. Then, the information is limited to the data that falls within the filter criteria designated.

Indirect Cost Limit Calculation GL Accounts Available, Selected, Status, Title: Select the GL accounts to use as the basis to calculate. Click the Mover (>) to move the codes to the Selected column.

If the Labor Hours method is selected, the system displays the labor hours version of this tab.

The system allocates the Pool Balances to the Recipient segments based on a percentage from the relative number of labor hours found in the recipient segments during a date range. The date range for the calculation is defined using the Balances From and Balances To dates on the Activities>Process Allocations>Allocation Codes tab. Only labor hours associated with payrolls that have been transferred to accounting (Activities>Payroll>Transfer to Accounting) will be counted. Voiding checks will remove the associated labor hours from the count, provided the voiding sessions have been transferred to accounting.

Note:  Only employees that are hourly employees are included in the labor hours calculation.

Filter Available, Selected: The list includes all segments except GL and the Allocation Segments selected on the Allocation tab. The filter applies to the selection of data related to the calculation of the Labor Hour percentages. To filter data, first select an item in the Available column, and click the Mover (>) to move it to the Selected column. Once an item is displayed in the Selected column, set up its filtering criteria. Then, the information is limited to the data that falls within the filter criteria designated.

Indirect Cost Limit Calculation GL Accounts Available, Selected, Status, Title: Select the GL accounts to use as the basis to calculate. Click the Mover (>) to move the codes to the Selected column.

If the Transaction Count method is selected, the system displays the transaction count version of this tab. The transaction count is based on the General Ledger transaction entries and does not count any budget entries or entries in the encumbrance, accounts payable, or accounts receivable sub-ledgers.

The system allocates the Pool Balances to the Recipient segments based on a percentage from the relative number of transactions found in the recipient segments during a date range. The date range for the calculation is defined using the Balances From and Balances To dates on the Activities>Process Allocations>Allocation Codes tab.

Filter Available, Selected: The list includes all segments except GL and the Allocation Segments selected on the Allocation tab. The filter applies to the selection of data related to the calculation of the Transaction Count percentages. Transaction Source is added to this filter to further limit the transaction count; if not selected, all sources apply, except for Budget (BD) and Encumbrances (ENH and ENL). To filter data, first select an item in the Available column, and click the Mover (>) to move it to the Selected column. Once an item is displayed in the Selected column, set up its filtering criteria. Then, the information is limited to the data that falls within the filter criteria designated.

Indirect Cost Limit Calculation GL Accounts Available, Selected, Status, Title: Select the GL accounts to use as the basis to calculate. Click the Mover (>) to move the codes to the Selected column.

If the UDF Unit Measures method is selected, the system displays the user defined fields unit measures version of this tab.

The system allocates the Pool Balances to the Recipient segments based on a percentage from measuring the numeric values assigned to the user defined fields (selected on the Allocation tab). The values are considered relative to the recipient segments in combination with the UDF Unit Measures GL Accounts specified on this tab. The date range for the calculation is defined using the Balances From and Balances To dates on the Activities>Process Allocations>Allocation Codes tab. Only Transaction Line UDF fields with a Field Type of Number (Organization>Set Up User Defined Fields) can be used with this allocation method.

Filter Available, Selected: The list includes all segments except GL and the Allocation Segments that are not selected on the Allocation tab. The filter applies to the selection of data related to the calculation of the UDF Unit Measures percentages. Transaction Source is added to this filter to further limit the user defined fields; if not selected, all sources apply, except for Budget (BD) and Encumbrances (ENH and ENL). To filter data, first select an item in the Available column, and click the Mover (>) to move it to the Selected column. Once an item is displayed in the Selected column, set up its filtering criteria. Then, the information is limited to the data that falls within the filter criteria designated.

UDF Unit Measures GL Accounts Available, Selected, Status, Title: Select the GL accounts to use as the basis to calculate. This includes numeric user defined field values (from the user defined field selected on the Allocation tab) that are needed for the percentage calculation. The calculation uses the user defined field in relation to the Balances From and Balances To date range and calculates the percentages as they relate to the allocation segment codes on the Recipient tab. Click the Mover (>) to move the codes to the Selected column.