Account Allocation Setup

Overview

Account allocation/distribution is an optional feature of FundWriter that enables your organization to use one GL account (or pseudo-account) as a placeholder for multiple other accounts and to post to these accounts according to a distribution schedule. Here is an example of how this concept might work in practice:

Account ABC

• Account X (50%)
• Account Y (30%)
• Account Z (20%)

According to this schedule, if $100 posts to account ABC, FundWriter automatically distributes this amount as follows:

• $50 posts to Account X
• $30 posts to Account Y
• $20 posts to Account Z

The FundWriter system offers two methods of doing this:

• Through GL account allocations;
• Using combined accounts in the chart of accounts.

GL Account Allocations (FW14) allows your organization to allocate percentages of a posted amount to at least two other General Ledger accounts when the amount posts to an allocation account. While serving essentially as a placeholder, the allocation account is a true GL account and must be set up in the chart of accounts before it can be used in an allocation arrangement. Based on a setting in FundWriter Setup (FW01), you can designate whether the allocation account retains records of posting activity or not.

Account allocations are sensitive to fiscal-year and company (entity) selections. If necessary, your organization can set up unique allocations for different fiscal years and companies (entities).

NOTE: As of this writing, the following DDI-Connect modules do not allow the distribution of posted amounts via account allocations: Investments, Loans, Fixed Assets, CheckWriter, and Accounts Receivable.

To configure account allocations, do the following:

• From the DDI Connect main menu, double-click FundWriter

• Double-click General Ledger Setup

• Double-click G/L Account Allocations. You will see this screen:

• Click the New button on the toolbar. You will now see this screen:

File:Account Alloc 2.jpg

• Enter the GL number that you wish to use as the allocation, or click the list icon to the right of the field to select from a list of the available GL accounts. Click OK when you've selected the allocation account. You will now see this screen:

File:Account Alloc 3.jpg

• Enter the GL account number of the account that you want to receive a distribution to, or click the list icon to the right of the field to select from a list of the available GL accounts

• Type the percentage of the distribution in the Percent field. The percent distribution remaining will display to the right of the Percent field. This shows 100% until you save the first distribution line.

• Click OK. This displays the distribution account window again:

File:Account Alloc 4.jpg

• Repeat the above steps until the distribution accounts total shows 100%: