Shared Transactions Allocation GL Impact
Note: Intercompany Shared Transactions is only available if you have purchased the Standard or Premium Tier of Shared Transactions. If you have the Standard Tier, you can use intercompany allocations for bills. If you have the Premium Tier, you can use intercompany allocations for all transaction types |
Overview
In this article, we will be discussing the GL impact of two different allocation types (segment & intercompany).
GL Impact:
Once the segment allocation (i.e. department, class, location, or custom segment) is completed, it will then be possible to drill down into the entry in order to see which accounts have been hit by this allocation.
In order to get to the bill, go to Transactions>Payable>Enter Bills>Lists.
Select the bill that has the segment allocation.
Once the bill is open, go to the subtab titled Shared Transaction and then select the sublisting titled Allocation Impact. Here you will see the journal entry for your allocation.
In the example below, there are two different allocation types. There is a segment allocation (Department) and an intercompany allocation.
The segment allocation is for $10,000 and is split 50/50 between Engineering and Production departments. On the first line of the entry is the reversal of the original entry that hit the Accrued Expense account for the $10,000. Then on entry lines 4 & 5, is a debit to the Accrued Expenses account for $5,000 each to the corresponding departments. Shared Transactions reverses the original expense entry and then re-books the expense entry to the correct segments.
The intercompany allocation is for $6,000 and 100% of it is going to subsidiary QA Holdings Inc. This entry was originally booked to QA Mfg. On entry lines 2 & 3, there is a reversal of the original accrued expense along with an Intercompany Receivable being booked to subsidiary QA Mfg. On entry lines 6 & 7, there is the accrued expense being booked to the correct subsidiary QA Holdings Inc. along with an intercompany payable being booked to QA Holdings Inc. since they now take ownership of this bill.