Adding Allocation Codes

To access this form, go to Maintenance > Allocations > Allocation Codes > Add Allocation Code

The "Maintain Allocations" page displays all your allocation codes.

To add an allocation code, select Add Allocation Code.

On the next page, choose an allocation calculation method for this code.

For more details on a calculation method and to see examples, see Allocation Methods.

Note: The Indirect Cost Rate Cap can be applied to any method. Set the rate, begin date, and GL account entry code on the "Method" tab.

Note: You cannot change an existing code's allocation method. If you need to use a different allocation method, add a new allocation code.

After choosing an allocation method, the system displays the new allocation code's profile page.

To finish creating the allocation code, fill out the required fields on each tab, from left to right.

After filling out the fields on the form, select Save.

The allocation code has been added. Select "Maintain Allocations" to return to the Allocation Code Maintenance home page.

If you're ready to process allocations, go to Transactions > Allocations > Process Allocations to get started. See Processing Allocations for more information.

Click a tab below for more information on the corresponding tab of the allocation code's profile page.

Allocation Details
Pool
Recipient
Method
Notes

Allocation Code	Enter a name for the allocation code.
Status	Specify the status of the allocation code (Active, Inactive, or Discontinued). Set an allocation code's status to Active when you want to use it throughout the system. Active codes appear on reports. Set an allocation code’s status to Inactive when you don’t want to use it regularly, but may still need to use it at some point. A warning message will appear when you attempt to use inactive allocation codes. Set an allocation code’s status to Discontinued to exclude it from allocation calculations. Discontinued codes still appear on reports.
Method	The allocation method chosen for the code See Allocation Methods for more information.
Description	Enter a description for the allocation code.

Use indirect cost limit cap

Select this check box to compare the current period allocation amount to the indirect cost rate cap amount to determine what, if any, transaction entry will be made. The cap will only apply to the codes that are selected in the Indirect Cost Limit Calculation GL Accounts section of the allocation profile page (see the "Method" tab above).

Note: Any leftover funds will not be allocated and will remain in the Pool account.

Include codes with negative percentages when calculating allocations

Select this check box to include codes with negative percentages in the calculations. This option only applies to the Relative Account Balances, Weighted Average Daily Balances, Labor Hours, and UDF Unit Measures calculation methods (see Allocation Methods).

Note: This check box functions differently in the web-based version of MIP (Modern), as opposed to the desktop-version (Classic) which asks if you'd like to exclude codes with negative percentages.

Allocation Segments

Segment

The system displays all segments, except GL segments.

Select up to three segments to allocate from (Pool). These three segments will dictate the segments available to allocate to (Recipient).

Note: If the "Fund" segment or a balancing segment is selected, you must also select the interfund balancing accounts for the Pool and Recipient transaction entries (see the following section).

Indirect Cost Rate Segment

You can only designate one segment as the indirect cost rate segment.

You must designate a segment as the indirect cost rate segment if you are using the indirect cost rate allocation method (see Allocation Methods) or if you selected the Use indirect cost limit cap checkbox.

Interfund Balancing Accounts

If a Fund, consolidated organization, or other balancing segment type was chosen above, you must select the General Ledger accounts to use for balancing the allocation entry.

Note: Using Interfund Balancing Accounts with non-balancing segments is optional; however, when either a Pool GL Account or Recipient GL Account is entered, both the Pool and Recipient are required.

Pool GL Account

Select a "Due From" account from the drop-down list. This is the account needed to create the transaction's interfund offset for the pool entry.

This field only displays CSH-type codes whose currency matches the organization's functional currency. The same GL account can be used for both the Pool GL Account and Recipient GL Account.

Recipient GL Account

Select a "Due To" account from the drop-down list. This is the account needed to create the transaction's interfund offset for the recipient entry.

This field only displays CSH-type codes whose currency matches the organization's functional currency.

Use this tab to assign the allocation segment codes, the percentage of the pool to allocate (with the exception of the Indirect Cost Method), and GL accounts to allocate from.

You can also use the "Filter" section below to limit the Pool, for example, to one fund or a range of programs.

Codes to Allocate From

Assign pool codes and general ledger codes to allocate. The selected codes for the pool code and GL account to allocate from will determine the amount that is allocated to the recipient codes (with the exception of the indirect cost method). Selection of substitute entry code(s) and percentages is optional.

(Segment Name)

Select the pool codes to allocate the indirect costs from. Once a code is selected, you can specify an alternate Entry Code.

Percentage

Enter the maximum percent to allocate from the pool for the selected code. Only that percentage of the pool amount will be available for allocation.

This column is not available if the Indirect Cost Rate method is selected on the "Allocation Details" tab.

(Segment Name) - Entry Code

Select a substitute code to keep the indirect cost pool intact. These codes are available for any allocation segments designated on the Allocation tab - a single GL Account Entry code an be assigned. It replaces the selected code for transaction entry.

GL Accounts to Allocate From

Use this grid to specify the general ledger account that determines the amount to be allocated to the recipient codes. Only active or inactive general ledger codes will be available. The available GL codes will not include AP or AR (sub-ledger) account types.

Note: The system displays codes that were assigned to the Allocation Segment selected on the "Allocation Details" tab. Only CSH-type codes whose currency matches the organization's functional currency are available.

Selected

Select the General Ledger account to allocate from.

If the Indirect Cost Rate method is selected on the "Allocation Details" tab, only one GL account can be selected.
This GL account code represents the unallocated indirect cost GL account.

Status

The account's status (A - Active, I - Inactive, or D - Discontinued)

Title

The title of the code

GL Account Entry Code (Optional)

Enter a substitute GL account entry code, or select one from the drop-down list.

Select a GL account entry code if you would like to keep the general ledger account code's balances intact and reallocate to one account instead of numerous accounts.

Note: This field only displays CSH-type codes whose currency matches the organization's functional currency. All selected GL account codes for "GL Accounts to Allocate From" are replaced by this code during transaction entry.

Filter

The system displays all segments except GL and the Allocation Segment selected on the "Allocation Details" tab.

Use this tab to select the allocation segment codes to allocate to. The system also displays any GL accounts that were identified on the "Pool" tab.

Codes to Allocate To

Assign pool codes and general ledger codes to allocate. The selected codes for the pool code and GL accounts to allocate from will determine the amount that is allocated to the recipient codes (with the exception of the indirect cost method).

GL Account Entry Code

Enter a GL account to substitute for the receiving General Ledger accounts, or select one from the drop-down list. This code keeps the indirect cost pool intact and reallocates to one account instead of numerous accounts.

This code is required if you are using an indirect cost rate method, or if you selected the "Use indirect cost limit cap" check-box on the Allocation Details tab.

This tab's selections will vary depending on the allocation method chosen for this code.

Click a drop-down link to see more information on the "Method" tab for the allocation method selected.

See Allocation Methods for details on each allocation method available.

Keep in mind the following points when working with the "Method" tab:

When the Indirect Cost Rate method is selected, the “Use indirect cost limit cap” option uses the same GL Accounts that are selected for the Indirect Cost Rate method.

When the "Relative Account Balances" or "Weighted Average Daily Balance" methods are selected, the “Use indirect cost limit cap” option (a checkbox selected on the "Allocation Details" tab when adding a new allocation code) uses the same GL Accounts that are used to calculate the Relative Account Balances percentages or Weighted Average Daily Balances percentages.

All General Ledger Account fields only displays CSH type codes whose currency matches the organization's functional currency.

Percentages must add up to 100%.

Indirect Cost Rate Method

If the Indirect Cost Rate (ICR) method was selected for this allocation code, the system will display the Indirect Cost Rate version of this tab.

The ICR method allocates indirect costs by multiplying the indirect cost basis (amount derived from recipient allocation segment codes and IC amount calculation GL accounts) by the indirect cost rate.

Non-allocation segment codes are based on the Pool segment codes. The offset entry is made against the Pool segment codes regardless of the amount of the Pool balance.

The basic ICR methodology is:

Unallocated indirect costs are posted to an unallocated indirect cost GL account code and a pool allocation segment code during the course of operations.

The recipient allocation segment codes are used to calculate the indirect cost amount by applying a specific rate to the direct cost posted to the recipient accounts.

The results of the allocation calculation are posted to the recipient allocation segment codes and the allocated indirect cost GL account code.

Indirect Cost Basis allocations are distinguished from other allocation methods in that the Recipient information dictates the final direction (debits or credits) of the allocation entry, instead of the Pool information.

Note: If you selected the "Use indirect cost limit cap" check box on the "Allocation Details" tab, the system uses the same IC Amount Calculation GL Accounts for both the cap and regular calculation. The ICR Begin Date specified on the "Recipient" tab is the key to distinguishing the regular calculation from the cap calculation.

IC Amount Calculation GL Accounts

Select the direct cost GL account codes that the Indirect Cost Rate is applied to. More than one GL Account code can be selected.

Method Justification

Use this text box to explain the allocation method chosen for this code. This step is optional.

Enter any notes about the allocation code here.

(Segment Name)	The system displays the codes selected in the" Codes to Allocate To" group box on the "Recipient tab". The same row can have both percentage and amounts, or units and amounts.
Percentage	Enter a percentage to allocate to the current line item. At least one line item must contain a percentage.
Units	Enter a unit value for the current line item. The system automatically calculates the result percentages.
Amounts	Enter the fixed monetary amount to distribute to the current line item.

Proposed Allocation	Posted Amounts	Indirect cost limit
500.00	1000.00	1300.00

Proposed Allocation	Posted Amounts	Indirect cost limit
(500.00)	(1000.00)	(1300.00)

Proposed Allocation	Posted Amounts	Indirect cost limit
500.00	1000.00	1600.00

Proposed Allocation	Posted Amounts	Indirect cost limit
500.00	1000.00	900.00

Adding Allocation Codes

Allocation Segments

Interfund Balancing Accounts

Codes to Allocate From

GL Accounts to Allocate From