What is an allocation?

An allocation is an amount that has been set apart, or earmarked, to distribute to specific accounts.

Use Allocations to set up the properties the system will use to allocate amounts. the amounts that will be allocated, and select the accounts that will receive the allocated amounts. Your organization's needs will determine how many allocations that you will need to set up.

After you set up the allocations, you should run automatic allocations each month to allocate money from a common fund or an individual fund. The routine will also create interest allocations when you run Automatic Allocations.

There are two types of allocations:

Cash
Fund Allocations by Journal

Allocating funds monthly has its benefits:

You can base fund-related decisions on actual fund status.
You help your auditor by making adjustments