Information about how variable allocation accounts are calculated in Microsoft Dynamics GP

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INTRODUCTION

This article describes how variable allocation accounts are calculated in Microsoft Dynamics GP 9.0 and in Microsoft Business Solutions - Great Plains 8.0. Variable allocation accounts use the absolute value of the breakdown accounts in Microsoft Dynamics GP. Variable allocation accounts do not consider whether the breakdown accounts have a debit balance or a credit balance.

MORE INFORMATION

The following tables provide an example of how Microsoft Dynamics GP calculates the allocation by using the absolute value of the breakdown accounts.

 

Variable allocation account 000-6180-00

Distribution accounts

Breakdown accounts

Breakdown balance

100-6180-00

100-9010-00

$200 debit

200-6180-00

200-9010-00

$200 debit

300-6180-00

300-9010-00

$400 debit

400-6180-00

400-9010-00

$200 credit

If you post a $10,000 debit to the variable allocation account, Microsoft Dynamics GP uses the absolute values of the breakdown accounts to determine the breakdown account balances. If you add the absolute values, the total of all the breakdown accounts is $1,000.

Breakdown accounts

Total

100-9010-00

$200 ÷ $1,000 = 20%

200-9010-00

$200 ÷ $1,000 = 20%

300-9010-00

$400 ÷ $1,000 = 40%

400-9010-00

$200 ÷ $1,000 = 20%

The following information is posted to the distribution accounts.

Distribution accounts

Total

100-6180-00

$10,000 × 20% = $2,000

200-6180-00

$10,000 × 20% = $2,000

300-6180-00

$10,000 × 40% = $4,000

400-6180-00

$10,000 × 20% = $2,000

Total amount that is posted

$10,000

APPLIES TO:

Microsoft Dynamics GP 9.0

Microsoft Business Solutions- Great Plains 8.0

General Ledger

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