In this video we are going to discuss about mass allocation mass allocation. In the last video, we had this this discussed about recurring general suspend generals and different type of general general interest right. In this video we are going to discuss about mass allocation. What is a mass allocation mass allocation means allocating the cost to that department wise we are going to allocating the cost according to that department vice because any company you take there is a more than one department right. Any company you take we can have a more than one departments okay. So, we are going to allocating the cost to department wise and how we can allocate the cost suppose for example, Sample our company cost is a one lakh rupee now I have a three departments in my company now I want to allocate that one lakh rupee to all the three departments okay I have a company in my company I have a three departments okay so now I'm going to assigning that cost to to all the three departments how they can assignee with help of this mass allocation.

So, equal proportion is not possible right. Why because in each department, maybe employees or their their employees the ratio is not same for all the departments right. The way employees are varies from one department to another department. equal proportion is not possible how we can assign in the costume department with a For this mass allocation, we are going to dividing the cost according to that employee consumption according to the employee consumption, we are going to dividing that cost to all the three departments okay. So, this process we call as a mass allocation, allocating the cost to that department rice is not equal proportion based on that employee consumption. How do allocating what is the formula, the formula is given by the or the formula the mass formula is given by them or killed with help of the formula we are going to allocating the cost to that department vice.

So, that formula we called as a muscle mass formula. There is a standard formula given by the Oracle Application So we must ensure use that formula to allocating the cost to that department right? Okay. So let us see that formula, how to implement that formula into the GL. Okay. So now I'm a first I'm explaining that formula mass allocation formula, okay.

So, what is the formula, the formula is very into B by C a into b by C into B by C equal to b. This is a mass formula a into b by C equal to P. This is a mass formula given by the Oracle Application. We have to use this formula to allocating the cost to that department was okay here why The yen means total cost account laser total cost, how much costs you can help? Suppose for example, say it's a one lakh our total budget cost is a one lakh. Now I'm going to assigning the one lakh to all the departments our cost total cost is a one let that be called as a and what is a b? b means parent with the loopy the means parent with the looping but it's a looping looping Miss repeated.

Phantom is only one parent we can have the permanent visa here in Cameroon the amount is divided into different shapes right. Inside the departments, any company you take parent is one company that company can contains more than departments right. The one lakh rupees divided into more than departments only the same processes repeated for more than one time right. Okay see means parent with somebody means something means we are going to submit the individual department value. Suppose for example, the total amount is a one lakh I have a three departments in my company in department, the departments are D one D two D three in department in department even I haven't 20 employees are there in the department Do I have a 30 employees are there in the d3 I have to say implies that 2030 5040 hundred right 20% and when luck is assigned to D 130 percent of one luck is assigned to D two and rewinding to Staples Center sent on one luck assigned to that many Summing all the D one D two D three individual amounts that is equal to one lakh on the right there is nothing better target okay cmas parent with something we are going to something the individual department value after somebody you will get a one lakh rupee one because we are saying the one lakh rupee to all the three departments right.

Team in Stargate what is our target b b means our target ascending the cost to that department was according to the employee consumption okay. So, this is the mass formula given by the rk with help of this formula we are going to assigning the cost to that department device okay. Suppose if you want to implement this formula into the Oracle Applications into the GL module, so we needed three steps Before going to implement this formula, compulsory, we needed three steps. What are the three steps? The first step is go to create a one journal entry that is nothing but a cost to pull journal entry. The requirements are created cost report journal entry in our functional currency create a cost to pull journal entry in our functional currency.

So, what is our functional currency INR earlier right already we declared our currency as their INR currency as their functional currency. What is a cost to pool journal entry means total cost amount cost pool amount is nothing but a total cost amount. How much costs you can have suppose as a one lakh or it is a two lakhs, there is a final answer desert 10 lakh whatever it may be the total amount in normal application terminology we call as the dessert cost How much whatever I won't be how. So, the total amount divided into the different departments okay. So, go to create a faster type of first step is go to create a cost pool journal entry with the functional currency that is a first step and the second step is establish the parent child relationship among the departments established the parent the child relationship among the departments.

Suppose, we have a different departments any company you take there is a different departments are there like a production department, operations department, finance department, HR department, different departments are there You must send should establish the relation parents relationship between the departments. Okay, and finally, go to the How to rise one Start currency journal we how to pass one static currency gentleman what is a static currency status nothing better statistical currency static currency is nothing but then statistical currency prints we are going to calculating the currency of a particular department with help of these trackers. So, by default already or kill provided stat currency okay already the StatCrunch already provided by the article we how to use that currency we how to pass down stat currency journal for only the child the department's whatever department we select as a child departments, okay, so we how to pass a journal entry for that department.

So these are the three requirements before going to create a mass formula, first, we have to create these three steps after that go to implement that mass formula into that GL. Okay. So now go to log into the GL select the GL responsibility, us to go to creator, start currency journal in our functional currency in our functional currency, okay, so go to the navigation journals and go to the navigation, journal, enter and select the new journal and the universe function currency one. So when I go to the journal entry form, so by default, take your functional currency like your functional currency is another So, it is coming from the primary ledger your functional currency and your chart of account and your periods all the traces are coming from your primary ledger okay now go to view the journal entry name is a cost pool the lender so this terminology is most important Okay, so go to rise up costs to pull the journal entry costs to PL account okay description is not mandatory and ledger is what tests like that by default that disclosure is get enabled and the period adjustment and period is a match period and the date is effect to date is today's date.

And the currency will functionally currency always the cost full journal entry is raised in our functional currency. Okay, come to the lines go to select the chord combination of accounts Company department I am going to selecting the account as expense accounts. Okay, how much amount they are going to signing? Suppose For example, I have a 50,000 rupees, okay, the cost pool amount is two 3000 a month, I'm going to assigning them to all the different IP or whatever the charity we have. So that sign that 50,000 rupees to all that change. The total cost pool amount is 50,000.

Okay, I'm going to rise the general in our functional currency I am early. Okay. And the same company, same department and account is that cash account I could totally 50,000 credit set also okay so after entering of the journal entry then go to save the journal after saving then go to post the journal okay so you will get a message transaction complete three records upload and save and then go to post so request IDs 541809 okay now let us see whether this the lender is posted or not go to close the journal window and your request. Find now the program is pending, just go to research it Completed okay now let's go to the query. Now your account is successfully completed the dentist status is posted and 50,000 INR rupees debit and credit okay now the journal entries posted this is a first step okay close it and what is a second step established parent child relationship among the departments.

The second step is established that parent child relationship among their departments actually already be declared different departments right out of all department what is apparently how to make it one department as a parent once you make the department as Apparently testing the waters a change to the department okay. So go to establish the parent child relationship among the departments. So, what is the navigation means set up financials flexitarians key values go to the values window go to the values window set up financials plexuses key values now go to query where a department values application is gender ledger and title of the Lexa Phyllis accounting key flexible and what is your structure name, accounting structure and what is the segment department and go to play kinda find butter department is a test department. So the department is Ed department and go to click on the Find button.

Okay, so now the Define change ranges is disabled actually, why because here there is no parent right? So already we created a different department but there is no parent. We need not check any checkbox here. Whenever we check any checkbox here, by default This button is activated. Okay, so now I'm going to create one more department is a P sub parent department is a parent department. And I'm going to enable this checkbox turns on I am upon this checkbox by default, that is find the child Ranger circuit enabled the Define children just get an input okay?

Okay, assigning the quality To qualifies Ella budgeting Ella posting okay and go to search Okay, now that put the cursor on the parent department and go to click on that define the child ranges. So this is a we have only one parent. So what does that change to this pair and go to declare that sales departments already for departments are there like operations production finance headshots. So no department is not changed one because it's a general department on itself. Overall company. It's not any particular department, okay.

Okay, so now we'll make the put the cursor under okay. So now I have to declare the change but as a change to this parent so put the cursor on the parent department and go to click on that changes okay. So from how many times maybe one chain or a to chain article and four or five according to the requirement we are going to declaring the change here okay. So totally we can have four, but first one is not counted, okay. So for changes we can have operations production department HR. Okay.

Operations staffing is operations. And what is ending up to finance Miss Gleason had declared the teachers from operations to 101 to 103. Totally three Chase. one parent three children. okay whatever their department we select as a chain department. So we must include assign the cost to all the chain departments.

We must indeed assign the cost to all the shell departments, okay. Okay, now I declared that 101102103 after that go to sales. Transaction complete one, record, upload and save. Okay, close it. Okay, now we declared TD Part D as a child to one parent. Okay, save Wheaton closet.

This is a second step established our parent child relationship among the departments. And whatever the third step, goto raises currency journal. With the change departments, we have to pass start currency. Then and for the parent child departments only, okay. Start currency status already statistical currency already defined by the article. Okay go to there now how to write a journal entry same navigation journal enter quick click on the new journal so it says stat current the name of the journal entries is track current stat journal and same ledger same period at dismember effect to date.

And but here currency we need to change by default takes our functional currency right now I'm going to change the functional currency to start currency or the statistical currencies defined Okay, now we selected that statistical currency from the list. Okay, I'm going to pass the journal with the parent department chain departments only same expense account company same company, but the departments are the same departments the first two channels were not expense account same account expense account how much everyone we are going to sign in here approximate amount suppose by we are assuming in the 101 department there is a 20 imply server okay. So it when 20% down to 3000 assigned to that I signed to that 101 department 20% down 50,000 discuss Those are night next second department chain department. Same a complex physical product. How much same Am I sending them 40% and 50,040% means 20,000 Third production finance department My name is john Dickinson same 40% Okay.

So, when I adding these three different terms a month is equal to total cost to pool amount of 50,000 but we entered in start currency after allocation is completed automatically converted into another currency Okay. Now go to search so stat currency a transaction complete four acres of land and sale, but here there is no credit line right? yes we enter the debit lines are laughter allocation is completed automatically the credit line is created with the footprint thousand bucks This amount is also converted into INR currency I got to post it whether this settlement is posted or not, because here there is no credit line right or the debit line. Let us see whether this posted or not because this is the journal entry right why because there is no credit line here. So, by default that the suspense rent is added right. Let us see whether the suspension is added or you will get a error completed yesterday query here stat currency journal the debit side take the 50,000 credit side by default take the zero there is no suspense line is added here.

Why because this is not INR currency in our functional currency journal. Under current strategies, statistical currency we are going to be calculating the currency of that department. So that's great. So that the suspense when is not added there is no error is also displayed by posting of this journal by default the journal entries posted like whenever we create the assembling dinar functional currency by default the suspense man is added right. Okay, now we completed the three steps after that go to implement that must formula. The navigation is Janice define allocation.

Go to define the mass formula the navigation is general define allocation. Go to view the batch name test must match I'm going to click on the formula okay the formula name tested massive formula, most allocation is a category and just when general categories are just and what is a currency, our functional currency does Okay, come to the lines got to do the lines here, but it's a means total constable general enter whatever the quarter combination we selected there. Same combination selected here. You are tested journal tested ledger type of ledger is constant here there is a state of constant looping something. By default the general ledger is always constant. Companies always constant.

So you say cast a pool that will enter in whatever chord combination is selected. While defining this journal here also same combination selected so for castable are on the constants only okay okay and whatever the baby means parent with the looping right now got to select the parent with the looping only. So, ledger is remained constant and the company's always remained constant what is the department here department is a parent department here. Select the parent is a parent with the looping on select the looping here and they're called the same account expense account. Constant and product is a constant value. And because we entered this era entry into the stat currency right go to select the statistical currents okay.

And whatever the CC means parent with those Sammy, we are going to summing all the individual department values right after summing that value is equal to the cost yes I can't be the same expense account okay. Same here so statistical and what is it TT means target target means our B's our target what the select the quarter combination of D only. So, this is not a mandatory okay parent with the looping offset offset this cost this is also not mandatory Montague you can do otherwise no need also constable constant or mine okay so now this is the formula after implementing the formula then go to save it says transaction complete seven records and go to the closet. Okay after that go to sleep Kanda jam dead button go to click on the Generate button Would you like to share your lead generation yes photo submit site asking allocation parameters the name of the application is test the mass allocation must match and this is related what is a balancing segment one balancing segment is a company right you want to create this formula for your company or another company I suppose, if you have multiple company transactions maybe we can create a location for more than one company also, but we have only one company transactions right?

What to select only one company 01 that is a period match period. Okay, and then go to select the submit button. So, here when standard program is turning the program IDs by 9418 One five. So, whether this program is success when once this program is successfully completed or not, when the allocation is created after allocation is completed, now the system modify the journal entry okay. So, after that we are going to find out the journal. So, review the journal entry and find So, the start currency journal is converted into Ayana and you will get their allocation amount his 550 thousand here into the after completing of the journal then you will get a status of that allocation is completed and the amount is also converted into INR currency.

Okay let us see that go to see the journal entry whether if it is completed successfully or not, go to the viewer request and find got a viewer request and finder okay this program is successfully completed now again Landry's model, there are more days assigned to all that 3d path. So this is nothing but their mass allocation, allocating the cost to that department vice allocating the cost to that department. Okay. In the next video we'll see what is the intercompany journal? What are the intercompany generals and what is the budgets intercompany journal Sander budgets