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Administrator Guide
Last Updated: 2024-09-20
Create Allocation Definitions in AP&C

Create Allocation Definitions in AP&C

Security:
Set Up: Allocations
 domain in the Financial Accounting functional area.
Allocation definitions in Adaptive Planning and Consolidation (AP&C) specify the source, basis, target, and offset of allocations. For faster processing, group related allocation definitions into allocation group sets.
To display worktag types, ensure that you've defined them for accounting journal transactions in the
Maintain Worktag Usage
 report.
Workday doesn't automatically assign related worktags. Select where your worktags are from in the
Target
 section.
  1. Access the
    Create Allocation Definition
     task.
    As you complete the sections, consider:
    Option Description
    Currency Rate Type
    Select the rate type to use for translating multicurrency allocations between companies. This selection overrides any currency rate type set at the company or tenant level.
    When you don't select a currency rate type here, Workday uses the
    Default Currency Rate Type Override
     set for the company on the
    Edit Company Accounting Details
     task. When you haven't set a currency rate type override for the company, Workday uses the default currency rate type configured on the
    Maintain Currency Rate Types
     task.
    Account Set
    Fiscal Schedule
    Select the ledger accounts and business calendar for the allocation definition.
    Used By
    Select the source companies for this allocation. Use the allocation definition across companies that share account sets and fiscal schedules. The allocation process generates separate results for each company that uses the allocation definition.
    Create Reversal
    Select to create reversal journal entries on the first day of the next period. Workday creates reversing entries after you initiate the
    Run Mass Finalize for Allocations
     task. Before you run the allocations process, you can change the reversal date to a date after the run date in the next fiscal period. Workday posts the reversal journal when the ledger period for the selected date opens.
    You can't create reversal journal entries for budget amendments.
    When you rerun allocations with reversals, Workday doesn't reuse existing reversal journals, but creates new ones.
    Used in Group Set
    Displays after you add the definition to a group set.
    Inactive
    Select when the allocation definition isn't ready for use or to discontinue use. The definition can't be part of an allocation group set or have unfinalized or uncanceled allocation results.
  2. In the
    Source
     section, specify the source amounts to allocate.
    As you complete the section, consider:
    Option Description
    Source Type
    Allocation Percent
    Select what percentage of the ledger amounts from the source journal lines to allocate.
    Workday automatically populates 100 for all source types. For
    Fixed Rate Amount
    or
    Fixed Source Amount
    , Workday restricts the allocation percent to 100.
    Fixed Amount
    Enabled only when you select
    Fixed Source Amount
     or
    Fixed Rate Amount
    . For:
    • Fixed Source Amount
      , enter the total amount you want to allocate.
    • Fixed Rate Amount
      , enter the rate you want to apply to a specified fixed charge.
    Ledger/Plan Structure
    Select whether to allocate amounts from actuals or a financial plan. You can select from financial plan structure types that enable amendments.
    You can group budget dates from actuals, but not from financial plans.
    Book Code
    Filter the source journal lines used in the allocation by a specific book code. You can't filter plans by book code.
    If you don't select a book code, Workday returns only transactions with blank book codes.
    Ledger Account / Ledger Account Summary
    You can select retired accounts as the source, but not for your target and offset allocation components.
    The allocation process takes activity only, whether you select a balance sheet or income statement account. It also summarizes activity when the group set that contains the allocation definition is for a summary period.
    When the source type is a plan structure, you can filter only on source ledger summaries if the related plan structure contains a ledger summary hierarchy level.
    Workday only groups budget dates if the
    Source Filter Conditions
     grid displays values.
    Worktags
    The allocation process treats worktags of:
    • Different types as an AND condition. Example: Cost center and region.
    • The same type as an OR condition. Example: Western region or eastern region.
    Financial Condition Rule
    You can select a financial condition rule for ledger or plan structure source types, enhancing your filtering capabilities.
  3. In the
    Basis
     section, define how to distribute the source amounts.
    As you complete the section, consider:
    Option Description
    Ledger/Plan Structure
    Select whether to distribute the source amounts based on actuals or a financial plan. You can select from financial plan structure types that enable amendments.
    Allocation Method
    Select a methodology for distributing allocated amounts.
    Basis Type
    Dimension
    Select the worktag or value used to calculate the basis percentages. Example: Calculate proration by cost center, region, or any other worktag or worktag combination. You can only map worktags specified as dimensions in the target from basis.
    We support up to 3 dimensions when using the
    Spread Even
     allocation method. Don't specify more than 3, as additional dimensions can result in unexpected results.
    Group By
    Select up to 5 worktag types to group the allocation definition.
    You can't select a worktag type if you've already selected 1 on the
    Dimension
     field.
    If you specify a worktag type, it must be the same as the worktag type you select on the
    Target
     field.
    Company
    When the
    Allocation Method
     is
    Pro Rata
     and the
    Basis Type
     is
    Headcount
     or
    Statistic Values
    , you can filter the basis by company.
    When you don't specify company as a basis filter condition, Workday evaluates the basis based on the source company for the allocation. When you do filter by company, Workday evaluates the basis based on the combined results for the companies specified in the basis filter.
    When the
    Allocation Method
     is
    Pro Rata
     and the
    Basis Type
     is
    Ledger Accounts (Multiple Companies)
    , Workday requires a company on the basis filter condition when you select a ledger account or ledger account summary.
    Ledger Account / Ledger Account Summary
    When the
    Allocation Method
     is
    Pro Rata
     and the
    Basis Type
     is
    Ledger Accounts
     or
    Ledger Accounts (Multiple Companies)
    , you can filter the basis by ledger account or ledger account summary.
    Worktags
    When the
    Allocation Method
     is
    Spread Even
    , or when the
    Allocation Method
     is
    Pro Rata
     and the
    Basis Type
     is
    Headcount
     or
    Statistic Values
    , you can filter the basis by worktags.
    Financial Condition Rule
    When the
    Basis Type
     is
    Ledger Account
     or
    Ledger Accounts (Multiple Companies)
    , you can also select a financial condition rule to add more filter criteria to the basis calculation.
    A condition rule is a method of checking specified values with logical comparison operators and consists of 1 or more logical statements, separated by the logical operators AND or OR.
    Translation Currency
    Select the account translation currency Workday will use for prorating multiple actuals ledger accounts. Select a translation currency if you're prorating more than 1 actuals ledger accounts.
    Account Translation Rule Set
    Select the currency translation rule set that Workday will use during proration of multiple actuals ledger accounts.
  4. In the
    Target
     section, define where to record the journal entry or budget amendment for the allocated amounts.
    As you complete the section, consider:
    Option Description
    Ledger/Plan Structure
    Select whether to allocate to actuals or plan. You can select from financial plan structure types that enable amendments. Selection of a plan structure limits target account and worktag mapping to its allowable accounts, account summaries, and worktags. The plan structure for the offset is automatically the same as the target.
    You can group budget dates from actuals only.
    Budget Amendment Type
    Select the type of amendment to create, such as original or allocation amendment, to help you identify the budget amendment later on for reporting.
    Company is from
    The company where you want to record the target journal entry. You can only create a budget amendment for the source company.
    • Source
      : Records to the same company that you specified in the
      Source
       section of the allocation definition. The source of any allocation can come only from a single company. If more than 1 company uses the allocation definition and the target
      Company is from
       is the same as the source, Workday allocates the costs within each company.
    • Basis
      : For proration, this option enables you to set basis companies as the target using the values from the
      Company
       column on the
      Basis Filter Conditions
       grid.
    • User Specified
      : Select to specify the target company in the
      Company
       field. You can select from the companies that you’ve defined as intercompany affiliates to the source company.
    If the target company isn't from the source, the allocation process generates an intercompany accounting journal.
    Ledger Account is from
    The accounts where you want to record the target journal entry or budget amendment.
    • Source
      : Record to the same ledger accounts that you specified in the
      Source
       section of the allocation definition.
    • User Specified
      : Summarize the allocated amounts and record to a single ledger account that you specify in the
      Ledger Account
       field.
    Ledger Account
    If you select
    Source
     or
    User Specified
     from the
    Company is from
     and
    Ledger Account is from
     fields, the
    Ledger Account
     field displays ledger accounts that are valid for the specified companies.
    When you restrict ledger accounts to specific companies, Workday only validates the company and ledger account combinations when you select
    OK
     to submit the allocation definition.
    Book Code
    To redistribute and account for activity in a particular book code, select the book code to post the journal lines resulting from the allocation to. You can use a different book code than the ones in your allocation source and basis. Book code isn't available for budget amendment.
    Worktag Mapping
    Use to include 1 or more worktags in the target journal entry or budget amendment for the allocation. For each
    Worktag Type
     that you include, specify whether you want to use:
    • The same worktag values as the
      Source
       section.
    • The same worktag values as the
      Basis
       section.
    • A
      User Specified
       worktag value that you select in the
      User Entered Value
       field.
    When you restrict cost center or supplier to specific companies, Workday only validates the company and cost center or supplier combinations when you click
    OK
     to submit the allocation definition.
    If you can't find a worktag, ensure that the worktag type is defined for usage with Accounting Journal in the
    Maintain Worktag Usage
     report.
  5. In the
    Offset
     section, define the balancing side of the allocation accounting to relieve the source of the amounts allocated.
    For the offsetting journal entry and budget amendment, the allocation process can use either the same company as the source (set in the
    Used By
     field) or you can select an alternative company, which reduces the number of intercompany journal lines that you produce and eliminates the need to maintain multistep intercompany allocations.
    As you complete the section, consider:
    Option Description
    Company is from
    The company where you want to record the offset journal entry or budget amendment.
    • Source
      : Records to the same company that you specified in the
      Used By
       section of the allocation definition. The source of any allocation can come only from a single company. If more than 1 company uses the allocation definition and the offset
      Company is from
       is the same as the source, Workday allocates the offset within each company.
    • User Specified
      : Select to specify the offset company in the
      Company
       field.
      You can only select a company that has the same currency as your source company.
    Ledger Account is from
    The accounts where you want to record the offset journal entry or budget amendment.
    • Source
      : Record to the same ledger accounts that you specified on the
      Source Filter Conditions
       grid.
    • User Specified
      : Summarize the allocated amounts and record to a single ledger account that you specify in the
      Ledger Account
       field.
    Ledger Account
    In the
    Ledger Account is from
     field, if you select
    User Specified
    , you can select a specific ledger account for the company.
    Worktag Mapping
    Use to include 1 or more worktags in the offset journal entry or budget amendment of the allocation. For each
    Worktag Type
     that you include, specify whether you want to use the same worktag values as the
    Source
     section or a
    User Specified
     worktag value that you select in the
    User Entered Value
     field.
    When you restrict cost center or supplier to specific companies, Workday only validates the company and cost center or supplier combinations when you click
    OK
    .
Use the new allocation definitions in an allocation group set. Revised allocation definitions produce updated results when run.
If your allocation definition produces more than 50,000 journal lines, Workday recommends that you split the allocation definition.
Group allocation definitions into sets for processing and to establish interdependencies.