Allocation is the process of distributing amounts to one or more accounts or account-dimension combinations.

Use the Ledger allocation ruleform to set up an allocation rule that you can use to define the rules and methods by which ledger balances are to be allocated.

For example, you can set up an allocation rule to divide corporate advertising costs based on each department's sales in proportion to total departmental sales.

1. Click General ledger> Setup> Posting> Ledger allocation rule.

2. Enter a unique ID for the allocation rule.

3. Select the effective starting and ending dates for the rule.

4. Select the Activecheck box to make the allocation rule active and available for processing.

5. Click the Generaltab to enter additional information for the rule.

6. You can select the Intercompany rulecheck box to use the rule to process allocations across multiple companies.

7. Select the allocation method to use for the rule.

8. Select the data source.

   • If you select Fixed value, enter the fixed value amount to be allocated.

   • If you select Ledger, you can select a mathematical operation to process on the source value. Enter an amount if you select Multiplyor Divide.

9. Select the date interval code to determine the accounting periods for the allocation rule source.

10. Select the allocation journal name.

11. If you selected Spread evenas the allocation method, you can select to use either the source destination account and dimension, user-specified destination account and dimension, or a combination.

12. Click the Offsettab to enter offset accounts and dimensions to balance the destination distribution lines.

13. Select the origin of the offset account.

    • If you select User specified, select an offset account that will be used in place of the source account.

    • If you select Source, the respective account defined in source will be used during the allocation process.

14. Select the dimension to associate to the allocation rule.

    • If you selected Sourcein the Offset dimension fromfield, the respective dimension defined in source will be used during the allocation process.

    • If you selected User specified, select a dimension that will be used in place of the source dimension.

15. To create ledger allocation rule source information, click the Sourcebutton.

    To create ledger allocation rule destination information, click the Destinationbutton.

    For more information, refer to Create allocation rule source and destination information