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This article describes how to allocate project transactions in Microsoft Dynamics SL.
The Project Series Allocation Processor distributes the Costs of a Project to other Projects or to the General Ledger, to calculate Overhead Charges based on actual Amounts or Units, to apply Rates to Units (or Amounts), to create Revenue or Fee entries, and other related purposes. It uses actual transactions (from table PJTRAN) as the Basis or Source for the Allocation amounts. The Processor uses a sophisticated Rate Lookup system and Posting Matrix.
Starting in Solomon IV Version 4.21 Service Pack 2b, it is possible to automatically allocate transactions. Once the batch is released in a Project screen (e.g. Project Charge Entry, Revenue Recognition, Invoice posting etc) and if the Account Category, Rate Type, Rate Basis set up in the Allocation Method qualifies to be allocated, it will be automatically allocated without manual intervention. In Solomon IV Version 4.21 Service Pack 2b, for transactions outside Project series, a Financial Transaction Transfer (FTT)(PA.TRN.00) has to be done before the auto-allocations kick in. Starting in Solomon IV Version 4.5, automatic FTT functionality has been added, which further streamlines the process.
For example, once a qualified General Ledger batch is released, it will be automatically transferred by Financial Transaction Transfer (PA.TRN.00) and automatically allocated without any manual intervention.
The basic steps involved in setting up and running an Allocation are described below.
1. Define Rate Keys: Use Key Maintenance (AL.KEY.00) to identify the key fields to be used in determining Rates. For example, if all Rates are based on combinations of Project and Employee, two keys must be set up, one for each of these fields.
2. Define Rate Tables: To use automatic Rate Lookup, at least one Rate Table ID must be defined. Rate Table Definition (AL.RTD.00) is used to define which Rate Keys are to be used for a Rate Table. Multiple tables are supported if different Projects use different criteria to look up Rates.
3. Define Allocation Method: Use Allocation Method Setup (PA.MET.00) to specify which Account Categories are to be allocated and where the resulting Allocation Amounts are to be posted. The method is actually a systematic instruction on how to allocate a Project. Multiple Allocation Methods may be defined if different Projects need different instructions. If the Allocation should create GL transactions and transfer them to the Microsoft Dynamics SL General Ledger system, the Post-to and Offset Company, GL Account, and GL Subaccount entries for the step must be specified within the method.
4. Assign Rate Table and Allocation Method to Project: Using Project Maintenance (PA.PRJ.00), a Rate Table ID and an Allocation Method are specified in the Project Master (PJPROJ) for all Projects that are to be allocated. A Project may only be associated with one Rate Table and one Allocation Method.
Caution - Make sure that the Rate Table is entered in the Rate Table field and not the Labor Rate Table field in Project Maintenance. The Labor Rate Table is used to Cost Timecards in Time and Expense module.
5. Enter Rates: Use Multi-Level Rate Entry (AL.RAT.00) to specify the Rate values for each combination of Rate Table and Rate Type.
Caution - Make sure that the Effective Date specified is the before the Transaction Date in order for Allocation to pick up.
6. Run the Allocation Process: The Allocation Processor (PA.PRO.00) calculates and applies the Allocation Amounts. When run in conjunction with the Microsoft Dynamics SL Multi-Company module, the Allocation Processor only allocates Projects that belong to the current log-in Company. In Final mode, this function produces the final audit reports and generates new transactions in the Project Series and/or General Ledger. When creating Project Postings, Billing Transactions may optionally be posted directly to the Project Series Flexible Billings Invoice Detail table (PJINVDET) if set up to do so in Billings Setup (BI.SET.00). A Preliminary mode is provided to allow review of the Allocation Amounts and adjustment of any Rates or Methods as necessary before final posting.
Note - Starting in Solomon IV Version 4.5, it is possible to allocate transactions belonging to a prior period. This is only possible if the "Allow posting of financial batch to a prior period" in Project Controller Setup (PA.SET.00.00) - PC Options and Setup is selected. Once it is selected, selection/posting period can be changed to a prior period in Allocation Processor(PA.PRO.00). If this is not selected, Allocation can only be performed for the current or future period.
Note - If Rates or Methods are found to be incorrect after a Final Allocation is run or if they must be changed after the Final has been run, the Allocation Processor can be run in Recalculation Mode to reverse out previous Allocations and to recalculate using the new information.