Allocating Cost and Depreciation

Note: This feature is not available for U.S. Companies.

The allocation feature allows you to apportion an asset's cost, depreciation expense, and accumulated depreciation among different funding sources and functions within your organization.

You apportion an asset's cost and depreciation by creating an allocation scheme for the three G/L account fields:

• G/L Asset Account
• G/L Expense Account
• G/L Accumulated Account

First, you set up the G/L account fields in the program so that each account number represents a category to which you want to apportion the asset's cost or depreciation. For example, if you want to apportion an asset's cost to three different funding sources, you could assign each funding source a unique entry for the G/L Asset Account field.

Second, you set up the allocation scheme for each asset. For example, you could allocate an asset's cost so that 50% of the cost is assigned to Source A, 30% is assigned to Source B, and 20% is assigned to Source C.

Third, you can view the allocation schemes for each asset by running the Allocation Percentages report. You can also run the Depreciation Expense report and sort by the G/L Expense Account field to view the depreciation expense allocated across various functions.