FAQ - Fusion General Ledger Allocation Rules Setup and Use cases (Doc ID

2719170.1)

A) Simple allocation rule design concepts

1: How to loop currency in allocation rule?

Dimensions like Accounting period, currency and currency type can be looped
through the LOV with few considerations
a. For Currency, all the required currencies can be taken in POV itself, separated
with comma.
b. While doing so, the Skip pool option should be selected at source level, so that
allocation does not get aborted in case of no balance in a source pool.

1. Currency: Use multiple currencies in the same allocation rule, by adding them
to the POV

2: Is there any upper limit of number of values of currency that can be looped
in a rule ?

For accounting period, max QTR values can be taken with the function
level0descendant.
All the values available for currency and period can be taken at most.
Performance is a major consideration as using this much values can result in long
running Generate Allocation program
"ALL" value should be not selected in any of the dimensions,if available.
In the source of such rules "Skip pool" option should be selected to avoid abort of
process in case of no balance found in any of the source pool combinations.
 3: Can the accounting date be looped in the rule ?

For Accounting period, either Quarters with level 0 descendants can be used
(@level0descendant (Qtr2-19), or comma separated periods can be taken
individually in the POV

4: Can the scenario/balance type dimension be looped in the rule?

Dimensions like Balance Type and Scenario are mostly taken at the allocation
component in Basis, therefore cannot be looped through.
5: Creating rule for recurring journals for coming 10 periods where a source
pool is allocated to a target account

Create a formula rule to assign from source account to target account (when its a
direct allocation and no basis requirements are there).
The accounting period can be created as a run time variable and the rule can be
executed every month.
Same can be done for allocation rule (if at all allocation is to be done depending on
basis)
If the requirement is to create a rule with all periods at one go , accounting period
can be looped through the POV of allocation rule

6: How to create a run time variable for accounting period ?

To create a variable, execute the following steps:

1. Navigate to the Journals Work Area.

2. Click on Create Allocation Rules under Tasks.
3. Once the Workspace opens in a new browser window, navigate to the
Calculation Manager (Navigate -> Administer -> Calculation Manager).
To define the run time prompt, select Variables under the Tools menu.
4. Expand to the ‘db’ under the required cube, right click on it, and select
New from the menu.
5. The Variable Designer opens in a new tab. Enter the variable header and
value information.
Note: A default value must be entered and the variable name cannot contain
any spaces.
6. Variable Header Information
Name: Accounting Period
Type: Member
7..Variable Value Information
Dimension Accounting Period
Default Value:Aug-19
RTP
RTP Text Enter Accounting Period
9.Click on the Save icon.
10. Now the Run time prompt variable is ready to use.

7: How is accounting date calculated for allocation journals ?

If the System Date is greater than Period End Date then Accounting Date equals last
date of the period.
If you run allocations on 01-Jan-20 for period Dec-19, the accounting date will be
31-Dec-19.
If the System Date is less than Period Start Date then Accounting Date equals start
date of the period.
If allocation is executed on 29-Nov-19 for period Dec-19, then the accounting date
will be 01-Dec-19
If the System Date is falling in the Accounting Period then Accounting Date equals
System Date.
If allocation is run on 15-Dec-19, for period Dec-19, then the accounting date will be
15-Dec-19.
Create variable with name "standard_accounting_period"
After that it is allowed to select posting date as RTP.
Enh 22674336 - SELECT ACCOUNTING DATE ON ALLOCATIONS

8: Using all DR and CR period activity balances with @Level0Descendants?

Use @Level0Descendants at POV level for looping and Amount type as PTD and
Balance Amount "Period Activity" to use all DR and CR period activity balances.

9: Allocation rule having same target and offset range, using dummy offset

In general this scenario should not happen, as functionally debiting and crediting the
same combination will not make any sense.
This can occur when allocation range has the same child value as taken in offset.
For instance : Allocation range : Cost Center (with parent XXXX having one child as
00000)
Offset is having Cost Center as 00000)
In this case , below two options exist :
a. Remove the value 0000 from hierarchy XXXX, publish the hierarchy and run the
same rule.
b. Create a dummy value for offset (00001) and use in Rule 1. Create another
allocation component 2 in same rule, use 00001 as offset and 00000 as target to re-
allocate the values

10: How to create formula rule having parent account in source value and
same has to be used in offset.

Create a rule with two allocation components to achieve this scenario.

In the first rule, put some dummy account in offset and use the designated source
with parent value and target. This way the dummy account (XXX) will have all the
credit values.
Create another rule with source and offset as the dummy offset (XXX) and scenario
as "Allocated"
Take original offset (AAA) as target so that it gets the values as per the basis
defined.
The dummy offset being negative will be debited here and original one will be
credited.

11: Creation of allocation rule, where we have single target line to be

generated with multiple offset lines.

Based on the requirement,the offset has the exact same combination as the source
and looping of segments is also required.
The Offset account is generated to balance target line.In allocation formula, offset
account is not mandatory to define.
So two allocation formula rules can be defined to achieve the requirement. First one
will generate the single target line by giving the parent account as source.
Second one will generate multiple offset lines using level0 descendant at POV level.

12: How can a specific segment in offset be changed on the basis of source in
allocation rule?

Suppose requirement is to move to amounts for Company 01, Account 11999 and
Intercompany 59 to a Company 01 Account 60395 and intercompany 00. The Offset
will be the same as the source.
The other segments should change dynamically based on the source.
This case needs looping on a particular segment for offset and want keep constant
value for target then it is not feasible in a single allocation rule.
Create parent value for Company and Intercompany and also create a parent value
for Account and keep 60395.
Pass a STAT currency journal with 60395 account.
Define allocation rule by using level0 descendant for company and intercompany.
Use the parent value created for Account in range.
It will offset the source balance, but target will generate with source intercompany
value.
Then use formula allocation to move the above target balance from multiple
intercompany to one intercompany value 00 and then nullify the balance with
multiple intercompany

13: How can a cross ledger allocation be created for elimination ?

Formula rule can be created when balance transfer is required mostly in elimination
scenario
a. Keep the target BSV as XXXX (same for all lines ).
b. Source can have multiple BSVs in teh same rule.
c. Offset should also have the same BSV XXXX used.
Generate General Ledger allocations program will successfully create journals.

14: How can one-to many allocation rule be created

All the ledgers to which allocations will be made are a part of a Ledger Set and
hence have to have common COA and Calendar.
This Ledger Set will be used in the Allocation Range form and should contain have
the Ledger used in the Source.
The Inter company rules have been set up in order to create the balancing lines for
each PBSV.
Further details can be found in white paper above under header "Cross Ledger Inter
Company Allocations"

15: How can many to many Inter Company allocation rule be created ?
If allocation rule is defined for one ledger, then many primary balancing segment
values on both the debit and credit sides will work properly after intecompany and
clearing company set up.
For Cross Ledger Intercompany Allocations, M:M is not allowed. So define two
allocation rules and use Period Activity Dr/Period Activity Cr as balance amount to
make the allocation rule M:1/1:M.

16: How can target value in cross ledger allocation be selected, when there is
no specific target?

Below are the source, target and offset.

Target: "RHG Corp USD"->"[Company]@[101]"->"[Intercompany]@[201]"->"USD"
Source: ("RHG Corp USD"->"[Company]@[101]"->"[Intercompany]@[201]"-
>"Period Activity"->"PTD"->"USD")*-1
Offset: "RHG Corp NL"->"[Company]@[201]"->"[Intercompany]@[101]"->"USD"
There are 100s of accounts in the target side and hence cannot give all the accounts
one by one in the formula.
In this case, use 2 allocation formlua rules to avoid many to many scenario and use
level0 descendant of account parent value at POV for looping
Rule 1:
Target: "RHG Corp USD"->"[Company]@[101]"->"[Intercompany]@[201]"->"USD"
Source: ("RHG Corp USD"->"[Company]@[101]"->"[Intercompany]@[201]"-
>"Period Activity Dr"->"PTD"->"USD")*-1
Offset: "RHG Corp NL"->"[Company]@[201]"->"[Intercompany]@[101]"→"USD"
Rule 2:
Target: "RHG Corp USD"->"[Company]@[101]"->"[Intercompany]@[201]"->"USD"
Source: ("RHG Corp USD"->"[Company]@[101]"->"[Intercompany]@[201]"-
>"Period Activity Cr"->"PTD"->"USD")*-1
Offset: "RHG Corp NL"->"[Company]@[201]"->"[Intercompany]@[101]"->"USD"

17: How can multiple company segments under one ledger be used to create a
rule ?

Put all the company values under one parent and use @Level0Descendant at POV
level for looping.

18: Selecting more than one parent account in the source definition?

One value can be selected at allocation source level.

Create a parent value and link all the required parent values to be selected at source
level as child value of above parent value. Then use the above parent value at
allocation source level.

19: Generate allocation journal based on a fixed percentage ?

Create a formula type allocation rule and take the revenue account (for instance) as
source and multiple with 0.03(say 3%). Select bad debt (or whichever account) as
target.

B) Complex Allocation Rule Design

1:Allocation required based on headcount (which is further to be calculated

based on a formula)

This case requires multiple calculations while calculating the source amount itself.
In such cases , following steps can be suggested while creating the journals itself. It
would not be possible to handle these calculations in allocation rule.

a. Create journal entries (Source amount) after calculating from the formula used.
This will make sure that source account is having the correct amount. This should be
taken care of in journal creation itself. Allocation will not be able to consider this.

b. Secondly the STAT entries should be created in such a way that journal reflects
the final STAT amount and no further calculation is required

c. Once the source and basis is created rightly in the application, allocation rule can
be created using Basis and Allocation Range.

2:Allocate a specific percentage of source to range of departments, with fixed

offset

Create a formula rule, with source as parent accounts and departments to target
with multiple as 0.28 (for instance)

Use specific account combination in this.

Target from first component to be used as source in the second rule.

3:How to run the Allocation Based on the Previous Period Balances?

a. You need to create two period variables one with current value and another with
prior value so they can pass both to the allocation and when the retrieve balances
they use prior period balances(source).

b. Beginning balance of current period is nothing but ending balance of last period
for balance sheet accounts. So you can use Beginning balance to get the last period
YTD balance for balance sheet accounts

4:Is it possible to allocate balance for the end of the year to the next period?
You need to create two period variables one with current value and another with
end of the year period value . This way you will be able to pass both to the
allocation . At the time of retrieving balances ,use prior period balances in the source

5:Can allocation be executed on Daily balances ?

As of now , allocation does not support ADB for rule calculation. As a workaround, if
allocation is to be done on daily basis, the entire balance on source account on that
day will be considered. This will be an incremental approach.

a. Define an allocation rule with source as parent of account B and C (B and C are
parent values of source)

b. Create an offset which is a child of parent account considered in Source. Do not

use any other account in offset.

c. Allocate the balances at parent level.

d. Run this allocation every day. Before running this make sure to reverse the
journal entries created earlier by previous day's allocation run.

6:How to allocate amounts separately on the basis of positive and negative

amounts ?

In allocation +ve balance means Debit amount and vice versa.Define 2 allocation
rules:

1) Use Period Activity Dr as balance amount for +ve balance and set the target
account to Profit Account

2) Use Period Activity Cr as balance amount for -ve balance and set the target
account to Loss Account

7:Allocate foreign currency balances to a functional currency

User can use Currency Type as Entered and Currency POV such as USD/INR in
formual type allocation
Use Currency Type as Converted (From USD/ From INR) and Currency as JPY
(considering JPY is base currency).
Since journal need to be balanced while posting, you need to define currency
balancing line at ledger level to post the journal.

8:Can conditional expressions on entered amount be used in allocation rule?

General Ledger Calculation manager doesn't support the conditional expressions.

In this case, user can use revaluation to nullify the difference between accounted
amount DR and accounted amount CR.
9:Generating allocation with 0 entered amount and nonzero accounted amount

It is not feasible to generate allocation journal with 0 entered amount and with
some accounted amount.
As a workaround you can use revaluation for this case.

10:Selecting child values on basis of conditions applicable on parent values

(like selecting largest amount of child values included in the parent)?

Not feasible

11:Generating Allocation Journals In Incremental Method In Fusion?

If source and offset are same, then allocation will always take the incremental
balance.ADB Allocations are not yet shared and are awaited.As a workaround

1) Use a separate account as the allocation rule and it should not use in other area.

2) Create a parent value which will contain both source and parent account

3) Use above parent as source, so it will take only incremental balance

Example :

Souce Account : Account1

Offset Account : Account2

Parent 1 : Account1,Account2

Suppose Account1 has 100 CR

After allocation,Account1 will have 100 CR and Account2 100 DR
Balance in Parent 1 : 0
If there is a entry with Account1 10 DR, then Balance in Parent 1 will be 10DR

12:Creating allocation journal entry (in two currencies)

For such scenario, fixed components can be taken in POV

In formula component 1 source, offset and target should be selected. (for instance
1000,1000,1011)
In second component source and offset should be the value selected in Target in
component 1 (which is 1011), and Target value should be same as source (1000 in
this case)

13:Summarizing data based on each AFF2 to another specific account for each
AFF2?

In POV setup,add values to a single parent and use Level 0Descendants . Add other
dimensions as required.
In allocation,use Amount Type ="PTD" , Balance Amount ="Period Activity DR".
In Allocation Range , use Account: Level 0Descendants of parent taken in source.
Use the basis is allocate evenly .

C) Questions on running allocation

1: When allocation is in Running status for long and is stuck in cancelling

It happens for allocation rules, where there are multiple looping involved in POV,
Source and Range.
The rule sets should be divided into small rules in such cases, which are less
complicated.
Additional segments like Future can be used if possible to overcome looping
scenarios which are mainly catering reporting requirements.

2: With Post Journals in such a way that next allocation is run only when prior
journals are posted

a. Create a custom Generate Allocations job, by copying the existing job

Add it to the job set as Step 1.
b. In Step 2, add posting , and select the outcome of Step as Success.
c. In Step 3, add another custom Generate Allocations program with Rule 2, this
time, and set it only when the outcome of 2 is Success.

3: Is it possible to run Generate Allocations in parallel ?

As of now Calculation Manager does not allow to run the program in parallel as its
incompatible to itself. This is done to avoid any conflicts of rule writing and any
performance issues in the application.

4: Creating a job set to avoid overwriting of values for same target

This is a limitation of allocation manager that when multiple target accounts are
same, it overwrites the balances , rather than adding them. As a work around to this
separate rules should be created for any such cases. In case there are many rules
like this, and user is facing issue in running it manually , a custom jobs set can be
created by following the below steps :
a. Create separate rules for having multiple same target accounts.
b. Navigate to Manage Enterprise Jobs for Financials and Supply Chain >> Search
for the job "Allocations"
c. Copy this job, and make sure that all user parameters are copied.
d. Keep the job definition intact.
e. Navigate to manage Job Sets >> Create a new job set with this newly created
"Allocations" job.
f. Add multiple steps with this job and save.
This method is useful but has its own implications. Every user has to have access to
"Manage Job Sets" screen in order to change the parameters for this.
This approach should only be given to user when recommended by
Development Team.
As a simpler work around, user can be asked to add unique segment values in target
account. This can be unique values for additional segments like Future 1.
For instance, if Target 1 is account A and target 2 is also account A, then target 1
can be updated to account A and Future 00, and Target 2 can be updated to
account A and Future 01.
This will make sure that there are no duplicate target assignments , also journal will
be generated successfully. The entire amount can still be aggregated at account
level for reporting.

5: How to use the first allocation rule generated balance in subsequent rule ?

In the subsequent rule, use 'Allocated' as scenario to take the balance of previous
rule.

6: What role/privilege is required to deploy an allocation rule ?

User should have General Accounting Manager role , in order to create, update,
deploy the rules.
If this role cannot be given to the user, then custom role having privilege
'GL_ADMINISTER_GENERAL_LEDGER_ALLOCATION_FORMULA_PRIV' can be created
and assigned to the user along with General Accountant.
7: Calling allocation process using web service

Call "submitESSJobRequest" of ERP Integration Web Service to submit "Generate

Allocations" process
Example:
The sample payload will look like as:
<soapenv:Envelope
xmlns:soapenv=""http://schemas.xmlsoap.org/soap/envelope/ xmlns:typ=""http://
xmlns.oracle.com/apps/financials/commonModules/shared/model/erpIntegrationServ
ice/types/"">
<soapenv:Header/>
<soapenv:Body>
<typ:submitESSJobRequest>
<typ:jobPackageName>oracle/apps/ess/financials/generalLedger/journals/allocation
s</typ:jobPackageName>
<typ:jobDefinitionName>Allocations</typ:jobDefinitionName>
<typ:paramList>300000002291540</typ:paramList>
<typ:paramList>RS</typ:paramList>
<typ:paramList>false</typ:paramList>
<typ:paramList>@300000002291577#AccountingPeriod-2020/01</typ:paramList>
<typ:paramList>300000002056051</typ:paramList>
<typ:paramList>3019</typ:paramList>
<typ:paramList>300000002056032</typ:paramList>
<typ:paramList>3019X300000002056032</typ:paramList>
<typ:paramList>Corporate</typ:paramList>
<typ:paramList>Allocations</typ:paramList>
<typ:paramList>MAEDACOAFINSTRUCTUR</typ:paramList>
<typ:paramList>#NULL</typ:paramList>
<typ:paramList>#NULL</typ:paramList>
</typ:submitESSJobRequest>
D) Rounding, Basis and Exclude options

1: If there is no rate defined, and roll over of existing rate is also not allowed ?

For scenarios where multiple currencies are involved and conversion rates are
required , below considerations exist :
a. Allocations and formula rules does not work on historical rates. (Roll forward –
Y/N does not account)
b. The rates of conversion type (selected while running the rule) should exist on the
accounting date which rule considers. The logic of accounting date is cleared in the
KM.
c. If the rates does not exist , allocation will complete successfully, but Import
journals will end in earning with error EC06 (There is no conversion rate for this
currency, conversion rate type, and conversion date.)
2: When rounding is explicitly given in the rule ?

When rounding is required at rule level :

a. Create the formula rule
b. Provide the rounding digits in the rule itself.
c. System will create allocation journals with amount rounded .

3: When there is no rounding decimal specified in the allocation rule ?

When rounding option is not specified :

a. System will create the journal entry and will round it on the basis of rounding
digits specified at ledger level.

4: When basis is selected evenly ?

When the basis is "Allocate Evenly",below consideration are made :

a. Entire combination used as Basis is overlooked by system, although its mandatory
to put values
b. There is option to "Exclude Negative" when basis is evenly distributed. However
this does not work, as the combination is not considered.
c. Only the source balance is considered, but that too is not impacted by this option.
d. Even if the source is having negative balance, system will consider it for
allocation.
5: When a natural combination is specified as basis ?

This case requires multiple calculations while calculating the source amount itself. In
such cases , following steps can be suggested while creating the journals itself. It
would not be possible to handle these calculations in allocation rule.
a. Create journal entries (Source amount) after calculating from the formula used.
This will make sure that source account is having the correct amount. This should be
taken care of in journal creation itself. Allocation will not be able to consider this.
b. Secondly the STAT entries should be created in such a way that journal reflects
the final STAT amount and no further calculation is required.
c. Once the source and basis is created rightly in the application, allocation rule can
be created using Basis and Allocation Range.

6: Does Exclude Account option work in allocation wizard ?

Any value that is to be excluded from the allocation range of a rule can be specified
in Exclude option Create the allocation rule and in the Exclude option , after
allocation range , specify the value to be excluded.
This Exclude should not be confused with Exclude option provided after specifying
Basis. Although the account is excluded, but the ratio of valuation is still considered
depending on Basis, and is not a part of journal generated.
7: How does scenario "Total For Allocations" work ?

When the consecutive component is having scenario as "Allocated" , the journal

amount generated by this allocation's first component will be considered for second
journal, irrespective of the posting status. If by any chance the first component ends
in error, the second will also not be able to generate journals in any case.

8: How does "Allocate Evenly" works for allocation wizard ?

When "Allocate evenly" is set,it will not consider dimension of Basis. You can use any
dummy account for basis.
Source amount will be allocated evenly amonng the target.
Basis combination will not take any effect when the option allocate evenly is
selected.
"Exclude negatives: Yes" option is meaning less, when you select basis as allocate
evenly then it will not take any effect on basis combinations, it will not effect
allocation behavior.

9: Is it possible to generate allocation based on journal source or category ?

No, allocation is based on GL balance. Essbase doesn't have category related POV