Mass Allocation:-

-To define mass allocation formulas, you create a mass allocation batch that contains one or more mass
allocation formula entries.

-Use mass allocation batch to group mass allocation formula.

-Mass allocation can be created in Ledger currency, entered currency or Statistical currency

-By including ledger or ledger sets you can allocate amount of one ledger to another ledger.

Creating Mass allocation Batch:-

- You can create mass allocation batch for ledger which has same COA.
- You must have read only or read-write access to ledgers and balancing segment value or
management segment value to generate mass allocation batch.

Mass Allocation Formula:- A * B/C

- If you choose ‘Full Cost Allocation’ you can enter an account or amount in line ‘A’ but lines ‘B’ &
‘C’ must contain accounts only.
- If Ledger sets/Ledgers or Balancing segment values are not defined in Mass allocation formula
then this formula can be used in any ledger/Leger set or Balancing segment values.
- Assign segment type to each account segment. The types are Looping, Summing & Constant.
- Looping: - Assign this type to ‘LEDGER SET’ segment value. The allocation program runs each
formula once for each ledgers defined in Ledger set. Assign this to a Parent segment value to
include each child value assigned to the Parent value In the formula. The allocation program
runs each formula for each child segment value. You can only loop on Parent value.
- Summing: - Assign this type to Ledger Set segment value to SUM the account balance of all the
Ledgers in the Ledger set. You can only SUM on Ledger set segment value. Assign this type to
Parent segment value to sum the account balance of the child segment values assigned to a
parent. E.G. If you enter a parent that has five child values, the allocation rule adds up value of
all the five child values and uses the sum in each mass allocation formula. You can only sum on
Parent value.
- Constant :- Assign this type to a single Ledger segment value. Use this to child value segment
value to use the detail account balance associated to child segment. You can use this to a parent
segment value only if there is a summary account associated with that parent. To use summary
account in mass allocation formula, all the segment in the formula must be assigned segment
value as Constant.

Target Account:- Enter an account in the Target line to specify the destination for your allocation. When
the result of the allocation is Positive then it will Debit the Target Account and Credit the Offset account
and vice-versa.
 - The Ledger or Ledger set of Offset account must be same as of Target Account. Also the Offset
account is usually the same account as the formula line ‘A’ to reduce the cost pool by the
allocated amount.
- For formula lines A, B and C (operand lines):
-
- • You can enter either an amount or an account in lines A, B and C.
-
- • If you enter an account and enter a ledger or balance-level reporting currency in the
ledger segment, you must have a Constant segment type. If you enter a ledger set in
the ledger segment, you can use either the Looping or Summing segment type.

- • If you enter an account, child values must have a Constant segment type.

- • Parent values may have a Constant, Looping or Summing segment type.

- • You can use a Constant segment type with a parent value only if it references a
- summary account.
- • If you use a Looping segment type on the same segment in more than one of the
operand lines, you must use the same parent.
- • If you use a Looping segment type in your Target line, you must use a Looping
- segment type on the same segment using the same parent in lines A, B or C.
- • To use summary accounts, all segments in your formula must be assigned a
- segment type of Constant.
- • You must have at least read access to the ledger, ledger set, balancing or
- management segment values in the lines A, B, and C to allocate those amounts. If
- you do not have read access, zero amounts are generated.
- • If you enter an entered currency as the transaction currency with the Converted
- Option, the currency of line A must be the same as the transaction currency.
-
- For the target line only (line T)
- • If you use a Looping segment type in lines A, B or C, you must use a Looping
segment type on the same segment using the same ledger segment value or parent
in your Target line.

- For the offset line only (line O)

• You can only use a Looping segment type in your Offset line if the corresponding
segment type in your Target line is Looping.

• If you use a Looping segment type in your Offset line, you must use the same
ledger segment value or parent as in your Target line.

Validation Business Rules

If you choose to use Full Cost Pool Allocation, below are the business rules used to
validate your Allocation Formula Rules for lines A, B, and C. If your full cost pool
allocation contains violations of the business rules, the execution report will detail the
errors.
1. Line A is account or constant based.
2. Line B is account based.

3. Line B has at least one looping segment.

4. Line C is account based and has the same segment values as line B.

5. Line C uses Constant or Summing segment type if line B uses Constant or Summing
segment type.

6. At least one Summing or Constant segment in line C corresponds to a looping

segment in line B.

Choosing the Allocation Method:-

1) Full Allocation Method: - Choose the full allocation method to generate journals that reverse
previous allocations or to post new allocation amount. Recommended to use this method for
first time allocation.
To replace a previous allocation requires two steps. First, reverse the original allocation.
Second, create a mass allocation for the new amounts.

2) Incremental Allocation Method:-

Choose the Incremental allocation method when you want to update allocated balances
without reversing the previous allocation batches. Using this method, you can generate
allocation journals as many times as you wish, provided there is no activity against the
target accounts between runs. Note the Offset account is usually the same account as
formula line A to reduce the cost pool by the allocated amount.

We recommend that you do not use the incremental method the first time you generate
a MassAllocation entry. However, if you do generate your first MassAllocation entry
using this method, your target balance must be zero.

Before generating incremental allocation journals, post all batches you previously
generated from the same formula batch.

if you rerun your incremental batches, General Ledger uses cumulative period-to-date,
quarter-to-date, year-to-date or project-to-date balances for the accounting period you
specify. The first amount type General Ledger encounters in the A*B/C formula is the
amount type used for the target account when calculating the incremental allocation
amount (A*B/C).