Dynamic Allocations add flexible power to Sage Intacct Save time, reduce errors and streamline audits

Until now, companies have had to choose between performing arduous, time-consuming and error-prone allocations using lots of math and spreadsheets or foregoing accurate visibility into the costs and profitability associated with various departments, programs, projects or business functions.

Enter Sage Intacct Dynamic Allocations, a new module that enables organizations to more efficiently and accurately represent their financial performance through allocation of indirect revenue and costs. You may be thinking, allocations aren’t new — what’s new about this? What’s new is the dynamic part — Dynamic Allocations can perform highly complex allocations quickly, easily and accurately.

Dynamic Allocations at work
Say you want to allocate healthcare benefit costs to your company’s various departments — a common situation. You might consider allocating healthcare costs by departmental headcount, square footage or evenly across all departments. Fairly simple, right? But say that to provide the most accurate picture, you want to base the cost allocations on each department’s overall share of wages — a much more complicated undertaking.

Without Dynamic Allocations, to achieve the more complex allocation you want, you’d need take a deep dive into a spreadsheet to calculate the various allocations before transferring them into a lengthy journal entry. Time consuming, error prone and mundane.

With Dynamic Allocations you can easily set up an allocation assignment to allocate healthcare costs proportionally based on the wages paid to staff in each department. Simply run the allocation each month and the deed is done. A much more accurate and speedy way to assign costs.

How it’s done
With Dynamic Allocations you set up the source pool, basis (allocation method), and the target one time. Then after every period, simply press a button to dynamically generate the allocation. The allocations are processed consistently (and dynamically!) every time, right inside of Sage Intacct. A verification page provides snapshots of the before and after for transparency into how the allocations were processed and their impact. So, month-end closes go more quickly and accurately — and audits are streamlined thanks to the comprehensive transaction tracking.

Allocation journal
You can create a separate journal in Sage Intacct specifically for recording allocations, giving you the flexibility to decide whether you’d like to report with or without the effects of the allocation. It also keeps your allocation postings separate from all the other postings to your main ledger, so you can view your allocation postings to ensure they are calculating accurately.

Group allocations
Let’s say you want to allocate square footage costs before facility costs and then allocate shared services costs across operating departments — all with a single action. You can with the group allocations feature. Set up your individual allocations and then group them together — and you control the sequence in which they are run. You control how errors are handled—keep going if there are no dependencies between allocations or stop the process if there are. There’s no limit on the number of allocations you can group together, and you get an email notification once the group has finished processing.

Sage Intacct Dynamic Allocations enables companies to save time, reduce errors and streamline audits, increasing transparency into organization performance and eliminating cumbersome spreadsheets. See Dynamic Allocations in action by viewing this on-demand webinar, or contact us with your questions.