G/L allocation across companies

Allocate income and expenses to other companies, with balanced intercompany postings.

Find a partner Back to Allocations and central payments

What it does

Head office allocates an amount to subsidiaries, choosing each receiver's account; the same receiver may appear on several lines. "Due from" and "due to" postings are made in every company.

When you need it: A management fee is shared between three subsidiaries.

The G/L Branch Allocation window: the accounts to allocate at the top, the receiving branches with their accounts, percentages and amounts below (demo data)

How it works

In the sending company, open Financials › G/L Branch Allocation and fill in "Due Date", "Posting Date" and "Document Date"; the header applies to every line.
In the top table, enter each G/L account to share out, its currency and the amount: a credit for an expense allocation, a debit for an income allocation. Add more lines as needed.
Select a top line, choose "Amount" or "Percentage" as the "Allocation Method", and list its receivers in the lower table by "IC Branch Code" ("Load All Branches" adds every company). A receiver may appear on more than one row, each with its own "Allocation Account".
Choose "Add". The sender gets one journal entry per top line, balanced against the due-from account of each receiver for a credit, or the due-to account for a debit.
Each receiver gets a journal voucher or a journal entry: for an expense, the due-to account for the sender against an expense account; for income, the due-from account against an income account.
The sender's lower table then shows each receiver's status, "Confirmed", and the receiver's entry number and date.

Set it up

In every company, "Branch Accounts Setup" (Administration › Setup › Intercompany › Branch Accounts Setup) holds a due-from and a due-to account for each other company, and "Default Accounts Setup" (Administration › Setup › Intercompany › Default Accounts Setup) the fallback expense and income accounts and a rounding account with its limit. "Receive G/L Allocation as" in "General Settings" decides whether a receiver gets a journal voucher (the default) or a posted journal entry. The receiving account is chosen in this order: the allocation account named on the row; an account matched by classification and type in "Default Accounts by Profit & Loss" or "Default Accounts by Balance Sheet"; then the default expense or income account.

Since: Version 50 (November 2023): the G/L allocation screens respond faster. Version 54 (April 2025): a choose-from-list button on the "Template" field.

Good to know

Lower-table percentages may not exceed 100 in total, nor amounts the top line. "Residual to Rounding" moves whatever is left over to the rounding account.
The receivers' allocation accounts reach the sender on a daily or weekly schedule (Administration Console › Preferences › Allocation Acct Scheduling), or at once with "Sync" under Administration › System Initialization › Company Details › Accounting Data.
From 2.0 PL30 the lower table may also name branches of the sender's own company.