Project Allocation

Introduction

The Project Allocation (PA) module is the driving module for the account setup in general ledger/job ledger. The account structure must be set up through project allocation rather than the organization key definition screen in the general ledger/job ledger area.

Features

The following key points outline the functions, purpose, and requirements of project allocation:

• Project expense allocation rules can be established at the time of project setup and will drive posting to the job ledger from all other subsystems. For example, data entry from AP, AR, CR, PO, PY, and SI require only the project number reference to complete all account postings and secondary allocation transactions.
• Allocation rules can be established to calculate based on a budget amount or a fixed percentage and can be prioritized by funding source (FS), phase, or other user-defined criteria. Project allocation recognizes funding limits by funding source and will discontinue allocation to funding sources when the limit reaches the maximum dollar amounts available.
• The module calculates and distributes interdepartmental charge-backs and allows for establishment of cost pools. Cost pools can be allocated by fixed percentage or by system-calculated ratios from user-defined cost drivers.
• Step down calculations and variance accounting can be established in the job ledger and supported by project allocation.
• Project allocation will create all required accounts in the general ledger/job ledger. When projects are set up in the module, this functionality is automated and completely interactive with the general ledger/job ledger.
• Project allocation provides for text entry to describe the project, administrative notes on project progress, and other user-defined information. All text is available for reporting via the CDD report writer.
• Benefit percentages can be established for projects that are self-contained but benefit multiple activities allowing project costs to be aggregated independently and distributed for reporting purposes. Project allocation supports multi-year budgeting. Project budgets can be rolled into the general ledger/job ledger through an automated routine allowing for unlimited budget adjustment prior to finalization and update of the general ledger/ job ledger.
• The project allocation (PA) subsystem is designed to track and catalog numerous projects of various size and complexity, and to allocate charges against multiple funding sources using user-defined protocols. The user can customize the system in several ways including allocating charges at different times and levels. For example, the system can allocate at creation of purchase order using the PO subsystem, or at check generation, using the AP subsystem.

Concept Topics

There are four allocation methods:

1. Allocating Actual Expenses
2. Reporting Prorated Expenses into Budget by Funding Source
3. Departmental Charge backs
4. Miscellaneous Allocations