Configuring Allocation Rules
If the split is the same every month, define it once. An Expense Allocation List is a saved allocation recipe — which entities share a cost, and in what proportions — that anyone can apply to an invoice in one click, and that the auto-allocation batch can apply with no clicks at all.
Access you'll need. Setting up and editing allocation lists requires the Accounts Payable v2 permission set (AP clerks & managers) or Accounting Admin v2 (system administrators) — the same people who post the invoices that use them. The Accounting Controller v2, Accounts Receivable v2, and Read Only v2 sets can view but not change them.
Building a list
Create the list
On the Expense Allocation Lists tab, click New. Give it a name that says what it’s for — "Group insurance split", "Head-office IT costs" — pick its territory, and keep it active.
Add the items — one per receiving entity
Each Expense Allocation Item holds: the Entity receiving a share, its Percentage, whether to Include Tax in that entity’s share, and an optional Sort Order that fixes the order the items apply in.
Sanity-check the percentages
For splits meant to fully distribute a cost, the items should total 100%. A deliberately partial list (say, 40% to one sister company, the rest staying home) is also valid — the remainder simply stays with the paying entity.
Every field, at a glance
| Field | Required? | What it does |
|---|---|---|
| List: Name | Yes | What appears in the Allocation Template picker — name the sharing pattern, not the month |
| List: Territory | Yes | Which part of your organization the list belongs to |
| List: Active | Yes (keep it on) | Retired lists are deactivated, not deleted — history stays referenced |
| Item: Entity | Yes | The company receiving this share — one item per receiving entity |
| Item: Percentage | Yes | That entity's share of the cost |
| Item: Include Tax | No | Whether this entity's share also carries its proportion of the line's tax |
| Item: Sort Order | No | Controls the order the items appear in, and the order they are applied. Lower numbers first; blank sorts last. |
A worked example — Meridian's head-office cost split, defined once as three items:
There is deliberately no GL account on an item. The receiving entity always books its share to the same GL account as the invoice line it came from — so a cost stays classified as the cost it is, whoever ends up carrying it. Where the receiver needs a different account, that is set on the resulting allocation record, not on the reusable list.
| Item | Entity | Percentage | Include Tax |
|---|---|---|---|
| 1 | Meridian Properties US LLC | 60% | No |
| 2 | Meridian Properties UK Ltd | 25% | No |
| 3 | Meridian Properties India Pvt Ltd | 15% | No |
Every head-office bill now splits 60/25/15 with one click — or no clicks, once the auto-allocation batch is watching. (Recoverable input tax often stays with the entity registered to claim it — hence Include Tax unticked here; ask your tax advisor.)
Using a list
- Manually: on the Allocate Expenses screen, pick the list in the Allocation Template box and click Apply — the rows fill with the list’s entities and percentages, ready to adjust or post.
- Automatically: attach the list to the invoice line (its Expense Allocation List field). The scheduled auto-allocation batch finds such lines on posted invoices and allocates them without human involvement — the recurring-costs killer feature. Details in Running Auto-Allocation.
Maintaining lists
- Ratios changed? Edit the item percentages — future applications use the new numbers; posted batches are untouched.
- Entity left the group? Remove its item and redistribute; deactivate rather than delete lists you might need for reference.
- Different costs, different splits? That’s two lists — attach each to the right invoice lines or apply manually per invoice.
Common mistakes to avoid
| Mistake | Why it hurts | Do this instead |
|---|---|---|
| Naming lists after periods ("June split") | Lists are reusable recipes — a dated name goes stale and breeds duplicates | Name the pattern: "Group insurance split", "Head-office costs 60/25/15" |
| Setting GL accounts on items "to be thorough" | The same cost lands in different accounts per entity and consolidated reporting stops lining up | Leave GL blank unless the receiver genuinely classifies the cost differently |
| A partial list nobody knows is partial | Items totalling 85% quietly leave 15% home — fine if intended, mystery if not | Say it in the name or description ("40% to PropCo, remainder stays") |
| Deleting a retired list | You lose the reference that explains historical allocations | Deactivate it — inactive lists stop being offered but keep the history legible |
| Ticking Include Tax without checking recoverability | Recoverable input tax may belong with the registered entity that can claim it | Confirm the treatment with your tax advisor per jurisdiction, then set the checkbox deliberately |
Where to go next
- Understanding Expense Allocation — the mechanics and accounting.
- Running Auto-Allocation — putting the lists on autopilot.
Frequently asked questions
Only when the receiving entity books this kind of cost differently — for example, the payer treats it as facilities expense but the receiver classifies it as managed-services cost. Blank means "same account as the original cost", which keeps consolidated reporting clean and is right for most groups.
Yes — the list only pre-fills the allocation screen. Adjust any row before posting; the list itself is unchanged.
They’re maintained by the Accounts Payable or Accounting Admin permission sets — the same people who post the invoices that use them.
No — a deliberately partial list (40% to one sister company, the rest staying home) is valid and useful. The 100% rule applies elsewhere: a header-level allocation on the invoice screen must fully distribute the invoice, so partial lists suit line-level work.
On the invoice line — its Expense Allocation List field. For recurring shared costs, set it once on the recurring template line so every generated invoice inherits it, and the auto-allocation batch takes it from there.
That entity's proportional share of the allocated line's tax, on top of its share of the cost. Leave it off to keep all the tax with the paying entity — the usual choice where the payer is the one entitled to recover it.
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