How do I setup an Allocation for my lease?

Configuring and setting up allocations and reviewing allocation journal entries.

Getting started

Utilize allocations to distribute lease costs among various segments of the organization. Let's go over how to setup an allocation to distribute lease expenses from a specific account segment to multiple segments of the same type.

After measuring a lease and prior to approving the lease, navigate to the Accounts tab to configure the allocation for the lease.
Select the lease in Accounting and select the Accounts tab. The allocations section displays at the top of the Accounts tab.
Select Configure to begin the allocation configuration.

Configuring the Allocation

Upon clicking the configure button, the Add Allocation window will display, including the expense accounts based on the type of lease, whether it is Operating or Finance. Occupier only allocates the income statement impact. Therefore, finance leases will have both interest and amortization expense available for allocation versus Operating leases will only have lease expense.

Select the start period for the allocation [default date is the starting date of the lease term], end period is optional and the date will default to the end of the lease term.
Select the segment type. Only segments associated with the lease can be allocated. Don't see a segment? Review this article How do I add Account Segments?
Choose the segments and corresponding general ledger accounts where the allocation will be distributed. Specify the percentage of the total amount to allocate to each segment. Make sure that the total percentage allocated across all expenses equals 100%.
Add / Delete Segments - To add segments to the allocation, select Add Segment in the top right corner of each expense section. To delete a segment from the allocation, select the delete icon to the right of the segment.
Once you have finished configuring the allocation, click on the submit button located in the lower right-hand corner of the allocation window.
You can view the allocation configuration and its effective periods in the allocations section on the Accounts tab. If you need to make changes to the allocation, simply click on the edit or delete button located at the bottom right corner of the allocation window.

Allocation Journal Entries

Once allocations have been set up for a lease, journal entries are automatically created upon lease approval. These allocation journal entries are separate from the Measurement journal entries and can be found in the amortization schedule export. Within the export, there are two tabs related to allocations- one tab shows the allocation journal entries, while the other tab displays the allocation distribution that was set up for the lease.

Filter Allocations from Journal Entries page

You can also view and export journal entries for allocations on the Journal Entry page and filter them by Journal Entry type Allocations.