DATA SHEET
SunSystems Corporate Allocations
A Complete Allocation and Intercompany Charging System
Automate Complex Allocations
SunSystems® Corporate Allocations is a powerful module with sophisticated allocation functions that allows you to manipulate existing ledger transactions to generate new transactions. It splits or reassigns expenses, revenues and other transactions using predefined rules. Allocate amounts across business units, periods, accounts, and analysis codes such as departments or projects. The charges can be split, increased, or decreased. Allocations can be based upon static ratios and financial or statistical data either recorded in SunSystems or as static ad hoc data. Corporate Allocations generates and posts ledger transactions, automates the apportionment process and repeats it each period, or as often as required.
Most organizations need to account for more than one entity which SunSystems caters for out of the box. Many of these entities also trade amongst themselves, meaning that processing intercompany accounts balances can be a daunting and time-consuming task for the finance department. SunSystems Corporate Allocations has sophisticated intercompany capabilities built into the core solution to streamline this process.
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Infor SunSystems Overview
Use Flexible Allocation Routines
SunSystems Corporate Allocations allows you to process these three methods of cost allocations:
- Apportionment—Spread costs or revenues based on statistical or financial data held in the ledger across financial entities (such as spreading overhead costs across departments by floor space or factory overheads across products by units of production)
- Fixed percentage—Apply a fixed percentage to allocations that do not vary from month to month; this allows costs to be split by predefined percentages (such as allocating 60% of telephone costs to the sales department)
- Fixed amount—Process fixed amount allocations when relevant (such as allocating the first $1,500 of building maintenance costs to the head office location)
Leverage Intercompany Capabilities
SunSystems Corporate Allocations fully supports periodic intercompany processing. Centralized payables and receivables can be maintained with automatic journals generated for the relevant target entities with corresponding balancing entries to the appropriate intercompany control account.
Allocations and charges can be made across entities. These can be posted automatically or on request. Transfer files can be produced for distribution to remote locations.
Generate charges
In addition to reapportioning costs, SunSystems Corporate Allocations can also generate charges. These three methods of charge generation are available:
- Apportionment—Base a charge on statistical or financial data (such as accruing handling costs derived from the number of transactions for each product)
- Fixed Percentage—Calculate a charge based on a predefined percentage of a financial or statistical value (such as calculating intercompany interest at 14% on the current group treasury account balance)
- Fixed Amount—Use a fixed-amount charge for cases where the same charge is to be made every month (such as a management fee)