Allocation tables are an additional way to manage expenses within the system. Click Allocation Tables on the Expenses page to access them. Allocation tables pair with the Statement of Functional Expense to automatically allocate expenses to the appropriate services.
Allocation tables require three pieces of information:
- A name.
- The services associated with the allocation table.
- The percentage of the expense to allocate to each service on the table.
A default expense account can be selected to further automate the process. In addition, a description can be added to help provide additional context to the allocation table’s purpose.
Allocation Table Use Cases
The flexibility of allocation tables are useful when expenses need to be split into multiple categories or cannot be allocated to one specific fund.
For example, overhead costs such as rent and utility expenses can be split into multiple categories using an allocation table. These expenses could all be processed individually by specifically splitting the expense amount, however if these expenses remain at a fixed rate an allocation table can be used to automatically process the expenses. Processing overhead expenses using an allocation table will automatically record and allocate the expenses to the respective services.
Joint costs are also considered expenses that should be processed utilizing an allocation table.