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: