In the allocation calculation costs, or also revenues, are allocated to different cost places according to certain distribution criteria. A common example is the passing on of administrative costs as a "burden" on operational cost centers. After performing the allocation calculation the company level values have remained the same, but there have been changes in the distribution of expenses between cost centers. Navita's allocation calculation takes into account the fact that the allocation cannot be made within the account, i.e. from the account to the same account at another cost center. Thus Navita's allocation rules require setting up a separate offset account and target account for the allocation. The balance of the original allocation account is always unchanged.
Often Navita's allocation rules allocate account group balances, and account groups contain separate allocation accounts to present the allocation. Navita doesn't allocate individual transactions, but only monthly amounts. One of the benefits to be achieved to determine the allocation calculation in Navita is that the same rule can be used to perform both the actual and the budget/forecast allocation calculation.
The allocation rules are managed using the Allocation Rules function in the Data > Compute menu. If previous allocation rules have not yet been established in the program, select the folder or Allocation rule.
If there is already an allocation rule in the system, a new allocation rule is established by selecting 'New Rule Below' in the Actions column.
After that, the settings of the new allocation rule are defined.
Name of the allocation rule
Description of the allocation rule
By using a text link, it possible to change to a multi-rule format, i.e. several "sub-rules" can be included within one rule if necessary. In practice, it does not matter whether you use several individual rules or one rule that consist of by several sub-rules. However, there is an advantage in creating a single rule with several sub-rules: it will be easier to change sub-rules than several individual rules if the rules include some common parameters to share. E.g. it is possible to change the target units by a single amendment to all sub-rules within the same rule.
Source organization item(s)
Organizational levels which costs are allocated in the selected account group
Source values to be allocated
Account groups/accounts or report lines which totals you want to allocate
Subtract values from allocation
Account groups/accounts or report lines whose total amount is subtracted from the allocated amount in the previous item and thus correct the balance that is rolled up. At this point, it is possible to close e.g. from the account group to be rolled out, some sub-accounts are excluded from the roll-up balance
Source data level
The data level from which to retrieve the balances to be allocated. If this is not specified (i.e. Default), then the balance that you are allocating is retrieved from the same data level where the calculation is being performed. This makes it possible to allocate the budgeted balance, e.g. budgeted EBITDA, at the actual level.
Source negative account
The account for which the program calculates the allocated value negative for each source unit. Causes the allocated account group or report line to reset with source units if the allocation offset account is included in the same account group/report line that is being allocated.
Destination organization item(s)
Organizational levels for which costs are allocated in the selected account group
The account to which the program calculates the values to be allocated by destination unit
Change sign of values
Specifies whether to change the sign for values. This option is available both for the value that is transferred to the allocation offset account and for the value that is calculated for the allocation target account. In most cases, the option Automatic works, but there are situations where the sign turn setting must be defined in a rule by the user. For the first allocation, make sure that the post-allocation situation is the desired result with the report. If the values shown in the reports have incorrect sign and have the opposite effect, change the setting and run the allocation calculation again for the desired result.
An account or report line which balances are used to allocate values for destination units.
If the key is an account which closing balance sheet (or opening balance sheet) should be determined, then the key must be the report line instead of such an account. By default, using a balance sheet account as a key uses only the monthly changes in the selected account in the calculation, not the balance sheet values.
Note! The program calculates the percentage share ratios from the specified account/report line among the target units specified above. Thus, there is no need to use percentages as the basis for the share. If you use a percentage account as the key, it should be noted that despite this, the program calculates the share ratios itself only among the selected target units and does not take advantage of the value found in the percentage account as such.
Key data level
The data level from which the key values are retrieved. This option makes it possible to allocate the Actual values to cost places, for example, in relation to the budgeted turnover or margin.