Allocation Manager

Sreeni Devireddy
Platform Technology Solutions
Oracle Development

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Agenda
1 Process Flow
2 Use Case
3 Intercompany & Multi-Ledger

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Agenda
1 Process Flow
2 Use Case
3 Intercompany & Multi-Ledger

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Allocations
Why?
• Distributes revenues or costs with recursive allocation rules
• Creates complex formula rules using formula component
• Contains an Allocation Wizard to define allocation and formula rules
• Uses real-time check of rule definitions to validate correctness of rules
• Minimizes setup and maintenance with reusable components
• Simplifies allocation generation process by integrating with enterprise scheduler
• Groups rules together in rule sets to cascade allocations for processing efficiencies
• Creates primary, statistical, or foreign currency allocation and formula rules

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Allocations
Process Flow

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Agenda
1 Process Flow
2 Use Case
3 Intercompany & Multi-Ledger

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Allocations
Use Case
• Freight expenses have to be re-distributed to all cost centers based on their revenue
• All Freight expenses are posted to account “52146” and cost center “000”
• Revenue for all cost centers (110, 111, 112, 120) is available in their account “40114”
• Allocated freight amounts must be posted to account “52149” for all cost centers

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Components
Point Of View • A Point of View is used to define dimension values
that remain fixed throughout the entire allocation
rule
– Ledger = Vision Ledger US
– Company = 3333
– Intercompany = 3333
– Currency = USD
– Currency Type = Total

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Components
Allocation – Source
• Dimensions from which to allocate the
data
– Cost Center = 000
– Account = 52146
– Scenario = Total for Allocations
– Balance Amount = Ending Balance
– Amount Type = PTD
• Optional – static amount

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Components
Allocation – Allocation Range
• Parent member for dimensions you
want to use for allocation
– Cost Center = 100 (parent value)

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Components
Allocation – Target
• For the remaining dimensions (that are
not part of allocation range), select a
member to which to allocate
– Account = 52149

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Components
Allocation – Offset
• Compensating value (which is the sum
of all rounded allocation values) will be
written to this offset
– Cost Center = 000
– Account = 52146

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Components
Allocation – Exclude
• Optional – select members you want to
exclude from allocation range
– None

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Components
Allocation – Basis
• Percentage to be applied to each
allocated member
– Evenly
– Using Basis
• Account = 40114
• Scenario = Actual
• Balance Amount = Ending Balance
• Amount Type = PTD

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Components
Formula – Use Case
• Create allowance for bad debt based on 5% of the PTD period activity in the receivables
account (1210)
• Account 7730 is the bad debt expense account
• Account 1260 is the allowance for bad debt account

– Source = 1210
– Target = 7730
– Offset = 1260
– Formula => 7730 = 1210 “PTD” * 0.05

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Step Down Allocation
Variants

• Scenario: A dimension for classifying balances data. For Allocations, use either of:
– Allocated: Temporarily holds the allocated values during the rule generation process
– Total for Allocations: The sum of Actual and Allocated amounts.

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Agenda
1 Process Flow
2 Use Case
3 Intercompany & Multi-Ledger

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Intercompany Allocations
Journals Vs Transactions
• Generate General Ledger Allocations: Allows you to create journals to allocate amounts
in a single ledger or across different ledgers in a ledger set. If the allocation is across
multiple ledgers, each ledger’s journals are balanced using the Intercompany balancing
rules
• Generate Intercompany Allocations: Allows you to create intercompany transactions
from allocation lines for a single or multiple ledgers. The intercompany transaction type
you select when submitting the process determines if manual approvals and invoicing
are required for the intercompany transactions created from the allocation

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Intercompany Allocations
Cross-Ledger
• Define a rule to allocate across ledgers by specifying a ledger set in the Allocation
Range. Any number of ledgers can be included in a single allocation formula
• Submit the Generate Intercompany Allocations process if you require intercompany
transactions or invoicing for your allocations
• Submit the Generate General Ledger Allocations process if you only need allocation
journals generated
• Ensure that the ledgers are within a ledger set when allocating across different ledgers
• Define intercompany balancing rules to use allocations across multiple ledgers

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Additional References

https://cloud.oracle.com/readiness
http://docs.oracle.com/cloud/latest/allbooks.htm
https://cloud.oracle.com/en_US/whitepapers
https://cloud.oracle.com/en_US/ebooks
http://docs.oracle.com/cloud/latest/index.html
https://fusionhelp.oracle.com/helpPortal/

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