In our personal and professional lives, we strive to organize, budget and remind ourselves about bills. How can we better automate reminders and payments? How can we never miss a due date? Let us simplify your life with special account types in Microsoft Dynamics GP. Unit, Fixed Allocation, and Variable Allocation Accounts automate salary expense, revenue per unit sold, rent and utility allocation, bills, simplifying year-end requirements, and more. These tools are available to you in your GP system, so start taking advantage of them today!
- Allow you to add statistics to FRx, Report Writer, or other reporting tools and use them for calculating per unit amounts, such as salary expense per employee or average revenue per unit sold.
- Useful as a basis for variable allocations. One example is tracking the square feet used by each department and allocating rent and utility expense based on each department’s percent of the total. (see the example below, under the discussion of variable allocations).
- Allow the user to make one-sided journal entries to book the units.
- Debits increase and credits decrease the unit account balance.
- GP only allows account numbers to be used once, regardless of type. For instance, my rent expense is 600-6180-00 so I cannot use that account number for the related unit account. I can either use an entirely different number for the units or use an extension reserved solely for unit accounts, such as 99. That would make my unit account 600-6180-99.
- In GP 2015 or higher, Unit Accounts can be marked to clear the balance during the year-end close process. This is useful when tracking statistics related to income statement accounts, such as sales statistics that need to track only the current year values.
Fixed Allocation Accounts
Fixed Allocation Accounts can be set up when you have expenses that are allocated based on a static percentage. For instance, if the telephone bill is always allocated according to a predetermined, fixed percentage, you can set up a fixed allocation account that lists the % to allocate and the account that this allocation needs to be posted to. When my telephone bill is entered and posted to my 100-6510-97 allocation account, it is allocated and posted to the distribution accounts based upon their designated percentage.
Variable Allocation Accounts
Variable allocation accounts are allocated based on the balance in another set of accounts. For instance, if you have unit accounts to track the square footage assigned to each department, you would use those accounts as the breakdown accounts. When you make an entry to the variable allocation account, the system adds the amounts in all the assigned breakdown accounts and then calculates the % of the total attributed to each breakdown account and uses that % to distribute the correct amount to the related distribution account.
The example below shows the entry for the rent expense of $10,000 to the variable allocation account 100-6810-98 and the resulting distributed amounts that will be posted to the respective distribution accounts, once the GL posting takes place.
Before Posting to GL
After Posting to GL
Because allocations take place in the GL posting step, entries generated in sub-ledgers can be automatically allocated the same as entries originating in the GL. This reduces the number of steps required to allocate costs to administrative departments whose total net expense will subsequently be allocated.
Take advantage of these special account types today and simplify your life! Contact us if you have any questions, or need help with any of the above scenarios.