Mass Allocation

Mass Allocations  

Mass allocation is a facility in Oracle Financials through which one can create journals that distribute and allocate revenues and expenses across a group of cost centers, departments, divisions, and so on. It is a very useful feature to properly distribute revenue and expenses amounts between accounts. For example, rent for the entire premises can be allocated to different cost centers based on the area occupied by each department. 

To define Mass Allocation formulas, you create a Mass Allocation batch that contains one or more Mass Allocation formula entries. 

You can also copy an existing Mass Allocation batch then modify it as needed for your new batch. By including parent values in allocation formulas, you can allocate to the child values referenced by the parent without having to enumerate each child separately.

You can create Mass Allocations in your functional currency, a foreign currency or statistical currency.

•        The Mass allocation journals in Oracle are handled in a step by step manner. The following steps are involved in created a Mass Allocation Journal Entry:

1.Create Mass Allocation Definition - First the user needs to define the mass allocation definition. The definition contains parameters as to how expenses etc would be distributed.

2.Validate the Mass Allocation definition - The second step is to validate the mass allocation definitions with valid account segments to ensure that same are correct and accurate.

3.Generate the Mass Allocation journals - Finally from journal entries already posted, mass allocation journals need to be passed so as to distribute or allocate the amounts to valid accounts based on proportion.

4.Review and post the entries - Once the mass allocation journals are generated, the last step in the process is to review the journals and post the entries to the Oracle General Ledger.