Allocation Journal across multiple companies

wheng

Member
Hi
the current indexed computation allows transaction balances to be allocated across a range of BU and Objects. However, does anyone know how you can allocate balances from a BU of one company to other BUs in different companies?

Thanks in advance

Wui khoon
 
Make sure you have "turned on" inter-company and set up the
inter-company AAI's. There are no other steps.



The system will determine the companies involved by way of the BU's
designated in the allocation journal set up.



Note that the company number on the header portion of the allocation
journal set up does not restrict the journal to only one company.



Wui wrote "the current indexed computation allows transaction balances
to be allocated across a range of BU and Objects. However, does anyone
know how you can allocate balances from a BU of one company to other BUs
in different companies? "
 
Re: RE: Allocation Journal across multiple companies

Hi Colin
The index computation setup does not allow me to allocate the costs from a BU AA Ledger to another BU AA ledger that does not have the same currency. Is there any way around this?

thanks
Wui Khoon
 
RE: RE: Allocation Journal across multiple companies

Hmmnn,



This multi currency issue should have been clearly stated in your
original post.



My experience with allocation journals across companies is OK but multi
currency is another thing all together. I suspect this is not easily
achieved, you might need to go via another ledger type (i.e. not AA
ledger type) but I cannot say without both a very clear understanding of
the requirement and access to an AS/400, neither of which I have at this
time.



I have to say - hopefully here several posters on the JDEList who can
offer further advice.



Wui Khoon wrote:-



Hi Colin
The index computation setup does not allow me to allocate the costs from
a BU AA Ledger to another BU AA ledger that does not have the same
currency. Is there any way around this?
 
When creating allocations from one company to another in which the currencies are different may be a little tricky.

We have done it in two different ways depending upon the type of allocation.

Scenario one:
Allocating expenses from Company 73 in GBP to Company 60 in USD.
Index allocation was setup where we are allocating from bu 73 ledger type "CA" (you will get a warning) to BU 63 (company 60), ledger type "AA" and the contr-clearing account is in company 60. Here, we are always going from USD to USD. The index rate is 1.0. It is VERY important to note the end users know that the CA ledger for company 73 will always be USD. My client in this case only worked with 2 currencies regarding these 2 companies. This may NOT work in which there is transactional activity in other currencies for the same company.

Scenario two:
Allocating expenses from Company 73 in GBP to Company 60 in USD.
Index allocation was setup where we are allocating from bu 73 ledger type "AA" (you will NOT get a warning) to BU 63 (company 60), ledger type "AA" and the contra-clearing account is in company 60. Here, we are always going from GBP to USD. In this case you MUST key in the exchange rate otherwise your numbers will make no sense. This type of allocation you want to avoid in most cases because it usually means you need to go into the allocation and change the exchange rate. In my clients case, the exchange rate was an historical rate that never changed, so it worked out nicely.

Feel free to e-mail me if you have further questions: [email protected]

Alex
 
Good call Alex. Making sure the "contra clearing account is in the
target company resolves many issues related to inter-company.



Nonetheless, I have some nagging doubts about the full accounting
implications, regardless of multi currency, based on your example (I
realise that this is only the JDEList and things are simplified). For
example, exclude multi currency implications, Company A incurs an
expense (and pays for it) but at month end the company regards that say
40% relates to company B - how do you reflect the reduction in expense
in company A, take up an expense in Company B, and also show the
inter-company indebtedness between the companies using allocation
journals?



I suspect the definition of your allocation journal contains more
"lines" than apparent from your post.
 
Re: RE: Allocation Journal across multiple companies

Ha! You're right Colin, there was definitely more to what I indicated earlier. In fact the allocations even used the multi-tiered options. It was so long ago when I set those allocations up. I would have to fiddle around with the allocations a while to duplicate what I did back then. Nonetheless, there is a way to allocate accross companies and currency.

Original:

Good call Alex. Making sure the "contra clearing account is in the
target company resolves many issues related to inter-company.



Nonetheless, I have some nagging doubts about the full accounting
implications, regardless of multi currency, based on your example (I
realise that this is only the JDEList and things are simplified). For
example, exclude multi currency implications, Company A incurs an
expense (and pays for it) but at month end the company regards that say
40% relates to company B - how do you reflect the reduction in expense
in company A, take up an expense in Company B, and also show the
inter-company indebtedness between the companies using allocation
journals?



I suspect the definition of your allocation journal contains more
"lines" than apparent from your post.
 
RE: RE: Allocation Journal across multiple companies

I cannot do more than agree that they would have been complex, and, of
course to a 'good' accountant, they would have made sense at the time!!

I was pretty certain that with time and effort there was a way to
resolve the mutli-currency issue (inter-company was not an issue to me).




Alex had replied:

"Ha! You're right Colin, there was definitely more to what I indicated
earlier. In fact the allocations even used the multi-tiered options. It
was so long ago when I set those allocations up. I would have to fiddle
around with the allocations a while to duplicate what I did back then.
Nonetheless, there is a way to allocate accross companies and currency."
 
When creating allocations from one company to another in which the currencies are different may be a little tricky.

We have done it in two different ways depending upon the type of allocation.

Scenario one:
Allocating expenses from Company 73 in GBP to Company 60 in USD.
Index allocation was setup where we are allocating from bu 73 ledger type "CA" (you will get a warning) to BU 63 (company 60), ledger type "AA" and the contr-clearing account is in company 60. Here, we are always going from USD to USD. The index rate is 1.0. It is VERY important to note the end users know that the CA ledger for company 73 will always be USD. My client in this case only worked with 2 currencies regarding these 2 companies. This may NOT work in which there is transactional activity in other currencies for the same company.

Scenario two:
Allocating expenses from Company 73 in GBP to Company 60 in USD.
Index allocation was setup where we are allocating from bu 73 ledger type "AA" (you will NOT get a warning) to BU 63 (company 60), ledger type "AA" and the contra-clearing account is in company 60. Here, we are always going from GBP to USD. In this case you MUST key in the exchange rate otherwise your numbers will make no sense. This type of allocation you want to avoid in most cases because it usually means you need to go into the allocation and change the exchange rate. In my clients case, the exchange rate was an historical rate that never changed, so it worked out nicely.

Feel free to e-mail me if you have further questions: [email protected]

Alex
Dear Alex,

Can you please tell me where to enter the exchange rate in scenario 2?

Thank you.
Regards,
Marie Noelle Saade
 
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