How do I create allocations?

Reconcile Checklist

Running the Create Allocations routine will create journal entries to balance a fund that’s out of balance. Usually, entering a journal entry includes a credit entry and a debit entry. Connect does not require you to create those entries in the same fund. Sometimes the accompanying entry is not created and the fund is out of balance. In other instances, a city may have only one fund for cash transactions, which may also cause a fund to be out of balance. Running the Create Allocations routine will scan the transactions in the current and prior periods to see if the debits and credits match in a fund. If the funds don’t match, Connect will create the transaction to offset the original entry to balance the fund.

You can create allocations for cash, fund allocations by journal, and interest allocations. Creating allocations will help you base fund-related decisions on actual fund status and help your auditor by making adjustments each month instead of making a single adjustment at the end of the year.

This routine is part of the Reconcile steps checklist that happens once a month for the General Ledger application. However, you can choose to create allocations as often as you need to.

There are three types of allocations:

Cash
Fund Allocations by Journal
Interest Allocations

You may use one or more allocations at your site. You should run automatic allocations each month to allocate money from a common fund to the appropriate individual fund.

Allocating funds each month has its benefits.

You can base fund-related decisions on actual fund status.
You help your auditor by making adjustments each month instead of making a single adjustment at the end of the year.

Watch a video

Learn how to create allocations in a journal, how allocations are recorded, and how to print the Journals report to review allocations (9m37s).

Creating allocations

1. Open Connect General Ledger > Journals > Create Allocations.

2. Enter the Period.

This is the GL period where Connect will record allocations created during this session.

3. Select the Journal.

Use the Journal menu to select CA.

4. Set up the checkbox titled Use Specific Date for the Transactions.

This option allows you to select a different date to record allocations instead of using the period shown in the Period field.

Do you want to record the allocations on a different date than the date shown as the Period?

Yes, I want to record allocations on a different date. Click to select the checkbox titled Use Specific Date for Transactions. Next, use the field titled Transaction Date to enter the input date.
No, I do not want to use the GL period. Do not select the Use Specific Date for Transactions checkbox.

5. Set up the checkbox titled Create Fund Allocations.

A fund allocation distributes amounts to fund accounts.

Do you want to distribute amounts to fund accounts?

Yes, I want to distribute amounts to fund accounts. Click to select the checkbox titled Create Fund Allocations. Then, click Select. Use the Selection form to select the journals that contain fund accounts.
No, I do not distribute amounts to fund accounts. Do not select the checkbox titled Create Fund Allocations.

6. Set up the checkbox titled Allocate Cash Daily (MM/DD/YYYY - MM/DD/YYYY).

Use Allocate Cash Daily to create a transaction to record cash allocations on each day in the selected period.

Do you want to create daily cash allocations?

Yes, I want to create daily cash allocations. Click to select the checkbox titled Allocate Cash Daily.
No, do not create daily cash allocations. Do not select the checkbox titled Allocate Cash Daily.

7. Set up the checkbox titled Interest Allocations.

An interest allocation distributes interest to the allocation accounts.

Do you want to distribute interest?

Yes, I want to distribute interest to allocation accounts. Click to select the checkbox titled Create Interest Allocations. Then, click Select. Use the Selection form to move the allocations to the Selected Allocations list.
No, I do not distribute interest to allocation accounts. Do not select the checkbox titled Create Interest Allocations.

5. Click GO (CTRL+G).

The allocations are created.

Updated 11Sep2018