The Allocations module is a cost accounting and calculation sub-system within your General Ledger System. As part of your General Ledger System, it has the advantages of complete audit trails, use of Structures to define allocation pools and bases, and the power of STAR for analysis reporting.
In addition to basic cost accounting functions, such as application of overhead to products and services, it can be used to create and maintain flexible budgets, to perform variance analysis, to perform top-down budgeting, to create rolling forecasts and to create pro-forma sets of books to support responsibility reporting.
A wide variety of methods can be used to perform an allocation, ranging from a simple fixed percentage distribution of overhead, to using departments, to the use of calculations capability to derive complex overhead rates.
The allocation process can be performed in various modes that allow you to control the impact on your master files. For instance, Trial or Calculate mode can be used to allow you to evaluate the impact of using a particular set of allocation rules and revise them if necessary before posting the results.
The result of an allocation step is immediately available for processing by any subsequent allocation step. This allows you to use the system to perform Step Method allocations and to create intermediate cost pools that can be funneled to the final cost objective in a single allocation cycle.