Accounting Distribution Rules
Accounting Distribution Rules (also called allocation or amortization rules) let you automatically redistribute, month after month, the balance accumulated in a set of source accounts and dimensions into other destination accounts and dimensions. They're used, for example, to allocate a general expense (rent, utilities, depreciation) across several departments, branches or projects, without having to split every journal entry by hand each month.
What are they and what are they for?
Many companies post certain costs or expenses to a single account and dimension (for example, the rent of the main building, or the electricity bill for the whole plant), even though that cost should really be split across several departments, branches, item classes or projects according to some criterion. An Allocation Rule defines that split criterion once: where the balance comes from (Source lines) and where it's distributed to (Destination lines, or a statistical account that calculates the split automatically). Then, every month, you simply run the rule to generate the corresponding distribution entry.
Static Rule vs. Dynamic Rule
When creating a rule you choose between two different behaviors:
- Static Rule: you manually define the Destination lines (accounts and dimensions that receive the distribution) and assign each one a Distribution Weight (a relative number — for example 40, 30 and 30). AdmCloud automatically calculates the percentage each line represents of the total. The split stays in the same proportions every month until you edit the rule.
- Dynamic Rule: instead of fixed destination lines, you point to a Weight Account, which must be a Statistical Account (a special ledger account that doesn't hold money but units — square meters, headcount, kilowatts consumed, etc.). When you run the rule, AdmCloud looks at the actual movements posted to that statistical account, by dimension, during the given month, and splits the balance in proportion to those real figures. The split therefore adjusts itself every month based on each dimension's actual activity, with no need to edit weights by hand.
How to use it
- Create the rule. From the Allocation Rules list, use the New button and choose Static Rule or Dynamic Rule depending on the behavior you need.
- Fill in the general data. Rule Name, Currency (and Subsidiary, if your plan has subsidiaries enabled). On a dynamic rule you also pick the Weight Account (a statistical account).
- Define the Source lines. Add one or more lines with the ledger Account the balance comes from, and optionally the Division, Department, Item Class, Location or Project (only the dimensions your company has enabled as a profit center will show up).
- Define the Destination lines (static rules only). Add the accounts and dimensions that will receive the distribution, along with their Distribution Weight. The screen shows the percentage each line represents of the total as you add them.
- Save the rule. It becomes available in the list, and you can mark it Inactive later if you stop using it.
- Run the month's distribution. Go to Run Allocation Schedules (available from the list), enter the Year and Month to distribute and, optionally, a specific rule (leave it blank to run all active rules). Once confirmed, the process runs in the background and generates the distribution entry dated the last day of the given month; you can track its progress from the Processes screen.
Key fields
| Field | Description |
|---|---|
| Name | Identifies the rule in the list; it cannot be repeated. |
| Currency | Currency of the rule; the accounts used in its lines must match it. |
| Subsidiary | Restricts the rule to a specific subsidiary (only if your company has subsidiaries enabled). |
| Type (Static / Dynamic) | Chosen when the rule is created; determines whether the split uses fixed Destination lines and Weight, or a statistical Weight Account. |
| Weight Account | Dynamic rules only: the statistical account whose actual movements for the month determine the split proportion. |
| Source lines | Account (and optional dimensions) the balance to redistribute comes from. |
| Destination lines | Static rules only: account (and optional dimensions) that receives the distribution, with its relative Weight. |
| Inactive | Hides the rule from the bulk run without deleting it. |
| Notes | Free-form comment; hidden by default in the list. |
Validations when saving
| Validation | Reason |
|---|---|
| Name is required | Identifies the rule in the list and in reports. |
| Currency is required and must be active | Every account used in the rule must be expressible in that currency. |
| A Dynamic rule requires a Weight Account; a Static rule cannot have one | Each rule type calculates the split differently. |
| The Weight Account must be a Statistical Account | Only a statistical account accumulates the units (m², headcount, etc.) the split is based on. |
| At least one Source line is required | Without a source, there's no balance to redistribute. |
| Static rules require at least one Destination line | Without a destination, there's nowhere to distribute the balance. |
| The currency of every account used in the lines must match the rule's currency | Prevents mixing balances expressed in different currencies. |
| Accounts and dimensions used cannot be inactive or void | It wouldn't make sense to distribute into an account or dimension that's no longer in use. |
| The Weight of every Destination line must be greater than zero | A zero or negative weight isn't a valid split proportion. |
A rule cannot be deleted if transactions (distribution entries) already reference it; in that case, you'd first need to void or review those entries.
Availability
- This feature requires the Enterprise "Advanced Finance" module to be active in your company (the same module also enables Statistical Accounts and Advanced Cost Centers). If it isn't active, the screens show a feature-not-available message.
- The dimension columns (Division, Department, Item Class, Location, Project) only show up on the Source/Destination lines when that feature is enabled as a profit center in your company; otherwise the column stays hidden.
- The Subsidiary column and filter only show up if your company has subsidiaries enabled.
Tips and common pitfalls
"Account X is not a statistical account". This message appears when you try to use a regular ledger account as the Weight Account on a dynamic rule. Go to the Chart of Accounts and check that the account is classified as a Statistical Account before using it here.
"The account's currency doesn't match this distribution rule". Check that every account used in the Source and Destination lines shares the same currency configured on the rule.
You don't need to wait around. Running the month's distribution executes as a background process — you can keep working and check its progress later from the Processes screen.
Before re-running the distribution for a month you've already processed, check Processes to see whether that rule and period already ran, to avoid creating duplicate distribution entries.