What happens if I allocate from one account to another?

FOA Allocation formulas are most often built to allocate data from a source category in one department to the same source category in others. This doesn't have to be the case...

If you choose to use a different source and target category in an FOA Allocation formula, there are two ways that the data may be allocated.

  • The Data in the source category remains unchanged, and the allocation is transferred to the target category, so the negative of the source category amount is placed in the target category (source department), and that amount is allocated to the target category in the target departments.
    • e.g. you need to allocate multiple expenses from your Corporate Department to all your others, but still want to see all those expenses in Corp. You could choose all the expense categories as your sources, and an Overhead Allocation account as your target. This would leave the expense data in Corp, but place a negative of all those expenses in Overhead Allocation in Corp, and spread that expense total across your other departments.
  • The Data in the source category is allocated directly to the new target category, so you will see a total of zero in the source category.
    • This is achieved by checking the box at the bottom of the FOA form labeled Allocated Amount remains at Source Department and Source Category