Introducing the Allocation Management Module

The Allocation Management module distributes direct or indirect costs across multiple sources, programs, grants or other account segments. You can also allocate various types of income, including interest income, across multiple funds. Allocations or distributions are calculated dynamically based on indirect cost rate, relative account balances, weighted average daily balance, employee head count, labor hours, transaction count, unit user defined fields, and by fixed percentages and monetary amounts. The allocation calculation even generates the appropriate General Ledger entries for updating accounts.

Advanced use of the Allocation Management module allows interest income to be distributed based on the weighted balance of specified accounts; a feature that is valuable to foundations or other agencies that allocate grant interest income for consolidated holdings. For budgeting, you can create allocations based on budget amounts instead of actual costs.

Allocation Management allows you to create multiple, sequential calculations for redistributing transactions. The sequential allocations feature allows you to define the order in which multiple allocations are performed, where one allocation may affect the results of subsequent allocations. The automatic calculation of sequential allocations and consistent distribution to account segments allow the system to meet the organization's unique needs. This is beneficial for any organization with multiple cost pools with differing allocation bases. The Allocation Management module includes an extensive collection of reports, including pre-posting allocated financial statements, which allow review of calculated results prior to posting.

To Add This Module

1. First the Allocation Management module must be added to the organization by the Administrator.
2. Either add Allocation Management to a current organization (Organization>Add a Module Wizard - Module Panel), or select the Allocation Management module when creating a new organization (File>New Organization Wizard - Modules Panel).
3. Once the Allocation Management module has been applied to an organization, the Allocation Management menu selections are available in the MIP Fund Accounting system.
4. There are Checklists available for setting up this module and its processes. Please refer to the online help (Help>Contents and Index>Reference) for modular specific menu selections, checklists, and common questions.