Can anybody tell me, What is the purpose of Allocation in Setup Button in Chart of accounts as it is already been there in the General Ledger → Setup–> Posting → Ledger allocation Rule?
Is there any difference between both the allocation or both are same?
If there is difference then How can I allocate the amount through Chart of Accounts?
when you want to allocate some percent of amount - to another account during the posting
and you need to enable it in- General tab-> Allocation - yes
As per my knowledge goes both are same - > in COA it is for a particular char of account
and even in Allocation rule you can specify the allocation percentages for all accounts…(Here u can find some more features- like different allocation method)
Kindly tell me How can I enable it and execute it after giving percentage in allocation field under Chart of Accounts as i am not getting any field related to ‘YES’ as mentioned above.
So far as i know there are differences. let us go through these.
First let us talk about purpose of Allocation in Setup Button in Chart of accounts .
For example we want that a 15% of a ledger account X should go to another ledger account Y. it means, you want whenever you post an amount to X Account , 15% of that amount should be deducted from X account and it will add to ledger account Y. For example if the amount is $ 1000.00 then entry will be as follows
X A/c-----------------------Dr/Cr $1000
Offset A/c
and then another automatic entry will come
Y A/C----------------------Dr/Cr $ 150
X A/C
To activate this Allocation Term for X A/c you go as follows
General Ledger → Chart Of Accounts -->X A/C → General Tab → Administration → Allocation (Tick It).
Then go to Set UP (Button) → Allocation Terms and define To Account = Y A/C and then dimension of Y A/c and in % define 15.
then the whole set up will be completed. and whenever any entry will hit this account, 15% of that will go to YA/C by an automatic system generated entry. but note: that system generated entry will use the same voucher number as it was for your initial entry which has generate this entry.
Now Come to 2nd type General Ledger → Setup–> Posting → Ledger allocation Rule
This is in 4 steps
Create an allocation Rules
Create an allocation Rule’s Source details & Destination details
Then create an allocation Journal
Process an allocation Request
so nothing will be posted automatically in 2nd case and basically it works as periodical Journal rather than system automated journal.
Financials III has generated allocations, but this relies on allocations being activated from Financials II. Is General Ledger Advanced not in your configuration?