Allocating Shared Costs
An allocation rule spreads a service or shared center's cost across beneficiary centers using a known driver.
Define the rule
Choose the source account and center, select a method, then add target centers.
- Drivers include percentage, headcount, area, revenue, direct cost, and labor hours.
- Fixed-percentage and manual allocations must total one hundred percent.
Simulation
Select a period and preview the source amount and proposed distribution before committing.
- The source amount comes from posted entries in the period.
- Simulation creates no financial movement.
Execution
Execute an active rule to create an entry that charges targets and relieves the source.
- Allocation does not run when the source amount is zero.
- The result appears in cost-center reports.
