Account Allocation Setup
Setting up GL Account Allocations (FW14)
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:
- 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:
- 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:
- Repeat the above steps until the distribution accounts total shows 100%. If you attempt to save without this total, the system will warn you:
- When you are finished, your screen should look something like this:
You can now repeat the process for any other allocation accounts you wish to set up. When you are finished, click the Save button to save your changes.