Managing a growing business, while rewarding, is a lot of work. It's easy to stress and lose track of how your expenses are being allocated. With the use of a program like Microsoft Dynamics GP, an expense accrued at the corporate office can easily be shared with numerous different departments with the click of a button.
In Microsoft GP, Allocations accounts provide a great tool for companies that split up various expenses across different departments. Rather than spend valuable time manually entering information, Dynamics GPeliminates the headache by doing the math for you! Setting up fixed and variable allocation methods with Microsoft Dynamics GP is a simple and effective way to streamline your business.
Transcript:
My name is Brent Stabler and I'm a consultant here at Logan Consulting.
0:05
Today's video I will be showing you how to set up fixed and variable allocation
0:09
in Microsoft GP. Allocations accounts provide a great tool for companies that
0:15
split up certain expenses between various departments. For example
0:19
telephone expense at a corporate office can be shared between the accounting, IT,
0:24
human resources, and administrative departments based on a fixed percentage
0:29
allocation accounts come in two varieties fixed and variable. Fixed
0:35
allocation accounts are simpler and divide expenses based on certain
0:38
percentages that are predetermined. Variable allocation accounts are more
0:43
complex and rely on balances and other accounts to calculate a location amounts.
0:48
I will show you how to set up both. We'll start with pics that location first
0:54
you'll need to set up a fixed allocation account by clicking on the financial tab
0:58
and finding fix a location under the card section. Here you will set up a
1:04
posting a location account account number and description
1:13
then and so the accounts you want to allocate the sixpence 2 I'll take
1:21
telephone expense which is account number 6510 and allocate to segments
1:26
100, 200 and 300 with percentages of 10, 20 and 70 respectively.
1:37
Start with 10%
1:43
and 20%
1:49
and then 70%. Make sure the percentages equal 100. Hit save, and then
1:57
you are done. now I'll show you
2:00
variable allocation you will find this window right above fix a location. You
2:07
will again set up a posting it
2:09
allocation account and tear and account number and description as before
2:15
choose whether you want to base allocation off the year to date or the
2:24
transaction period numbers. Now you have distribution accounts and a breakdown
2:30
account. The distribution accounts function the same as fix that location
2:36
these are the accounts that the expense will be allocated between. The breakdown
2:41
account is used to calculate the percent allocation you can choose a different
2:47
breakdown account for each distribution or have one for all of them a popular
2:53
breakdown account is sales so you have your distribution accounts as before and
3:04
Then when you have the selected account, you choose a breakdown account and I
3:09
would choose sales.
If you would like to learn more about Microsoft Dynamics GP, contact Logan Consulting your Chicago based Microsoft Partners.
