In this article we will understand the concepts of mass allocations and stat journals

What is mass allocation ?

As a simple example , lets take 2 departments which has 40 and 60 employees .And the company needs to allocate salary 10000 to these departments.Now we dont expect it be divided even based on the number of departments but by the number of employees present in each department.

i.e first department needs to be allocated : 10000 * 40 / 100 = 4000
second department needs to be allocate : 10000 * 60/100 = 5000

Hence for the above example we need a journal entry for total salary -10000
and two more journal entries(statistical journal entries) which indicate the the no of employees in each department.And then we need to mass allocate the total salary amount 10000 as 4000 and 5000 amounts to these departments  

 Now what are statistical journals and why do we need them?

Statistical journals are required to record non financial information.They will be used for the following scenarios :

- to record non-financial data that is required for inclusion in the accounts (normally internal management reports) such as head count,number of customers, suppliers, orders, etc
- to record data that is used for performing allocations, such as floor area (for allocating premises costs), head count (for allocating HR costs),number of orders (distribution costs), number of PCs (ISP costs) etc.

In the above example, we need two statistical journals(40,60) to record the number of employees in the departments based on which we can have a mass allocation formula to allocate the salary amounts to the departments.

Statistical journals will be entered with STAT currency and we can have an UOM defined to indicate the type of journals that are being created.In the above examle, the UOM would be headcount. These statistical journal entries need not be balanced.If MRC is implemented and if you use Multiple Reporting Currencies, statistical journals will be copied to your reporting sets of books, but the journals are not affected by the currency conversion process.And If your user profile permits(Journals:Mix Statistical and Monetary), you can also combine monetary and statistical amounts in the same journal line.

Since we have already chekced out the concepts of mass allocation and statistical journals ,lets check out who creates mass allocation formulas in Fusion apps 

Allocation Manager

In Oracle Fusion General Ledger, use the Allocation Manager to create allocations and other formulaic journal templates for generating periodic journal entries automatically,base formulas on multiple criteria. For example, use account balances or statistical amounts to allocate shared revenue or costs across multiple organizational units and ledgers. Define complex computations based on variables from different charts of accounts. Group journal formulas together and execute sequentially
to update account balances in a step-by-step process.The Allocation Manager provides flexibility, automation, intelligence, and control in distributing costs and revenues across the enterprise 

In the next article, we will see the steps to be performed to create mass allocation rules in fusion apps

Deepthi Reddy

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