Fixed Allocation Example 1 Version

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Example 1: fixed allocation

Allocation Method: Fixed
Allocation Basis: Account Balance
Allocation Ratio Basis: Not Applicable
Specific Amount: $0.00
Processing Period/Year: 01/2018

From Account Codes:

Account Code      Period Activity      Account Balance     
001-900-65-0000 $500,000.00 $3,000,000.00
001-900-65-1002 $100,000.00 $600,000.00
001-900-65-1003 $100,000.00 $600,000.00
001-900-65-1200 $125,000.00 $750,000.00
001-900-65-1201 $100,000.00 $600,000.00

To Account Codes:

Account Code         Percent to Allocate         Amount to Allocate        
001-604-65-0000 0.00% $150,000.00
001-605-65-0000 15.00% $0.00
001-606-65-0000 20.00% $0.00
001-704-65-0000 0.00% $150,000.00
001-705-65-0000 15.00% $0.00
001-706-65-0000 15.00% $0.00
001-804-65-0000 0.00% $250,000.00
001-805-65-0000 15.00% $0.00
001-806-65-0000 20.00% $0.00

Calculate the Total Allocation Amount

The Allocation Basis is Account Balance.
Therefore, the Total Allocation Amount is equal to the sum of the Account Balances for all "from" accounts for the selected processing period and year.

Total Allocation Amount = $5,500,000.00

Calculate the Individual Allocation Amounts

For each "to" account, calculate the Individual Allocation Amount.

  1. Process all "to" accounts with an Amount to Allocate specified.
    The individual amount applied to the "to" account is equal to its Amount to Allocate.
Account Code      Amount to Allocate     
001-604-65-0000 $150,000.00
001-704-65-0000 $150,000.00
001-804-65-0000 $250,000.00
  1. Reduce the Total Allocation Amount by the applied Individual Amounts to Allocate.

Total Allocation Amount (remaining) = $5,500,000.00 ($150,000.00 + $150,000.00 + $250,000.00) = $5,000,000.00

  1. Process all remaining "to" accounts.
    Calculate the Individual Allocation Amount for each remaining "to" account by multiplying the Percent to Allocate by the Total Allocation Amount (remaining).

Calculation:

Account Code Calculation
001-605-65-0000 15.00% * $500,000.00 =   $750,000.00
001-606-65-0000 20.00% * $500,000.00 = $1,000,000.00
001-705-65-0000 15.00% * $500,000.00 =    $750,000.00
001-706-65-0000 15.00% * $500,000.00 =    $750,000.00
001-805-65-0000 15.00% * $500,000.00 =    $750,000.00
001-806-65-0000 20.00% * $500,000.00 = $1,000,000.00

 

Resulting Journal Vouchers:

Account Code Debit Credit
001-604-65-0000 $150,000.00 $0.00
001-605-65-0000 $750,000.00 $0.00
001-606-65-0000 $1,000,000.00 $0.00
001-704-65-0000 $150,000.00 $0.00
001-705-65-0000 $750,000.00 $0.00
001-706-65-0000 $750,000.00 $0.00
001-804-65-0000 $250,000.00 $0.00
001-805-65-0000 $750,000.00 $0.00
001-806-65-0000 $1,000,000.00 $0.00
001-900-65-0000 $0.00 $3,000,000.00
001-900-65-1002 $0.00 $600,000.00
001-900-65-1003 $0.00 $600,000.00
001-900-65-1200 $0.00 $750,000.00
001-900-65-1201 $0.00 $600,000.00

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