(A PeopleSoft system capability for creating journal entries)
An allocation enables you to charge expenses or credit revenues to the proper distributions (Dept Id’s/accounts) on a monthly basis, as a percentage, over a period of time.
For example, each school shares costs related to commencement. Monthly expenses (which can vary from month to month) that are expensed in the home Dept Id for commencement expenses are debited to each school’s Dept Id as a Current Month Actual expense as determined by each school’s percentage of the total shared expense.
Another example of an allocation would be to recover assessment on revenue or gifts. An allocation would debit 10% of total revenue received in each accounting period in one Dept Id and credit this assessment to another Dept Id.
If you can benefit by creating an allocation entry or have an existing allocation that requires modification or inactivation, please contact Mary Beth McHugh at X76836.