Which of the following is not allocated in the
sales ratio?
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Bad debts
Commission on sales
Carriage inward
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Infor SunSystems – Help AdministrationFinancials AdministrationSetting Up Corporate AllocationsUnderstanding Corporate Allocations
What are Allocation Ratios?
You can use allocation ratios to define how the source transaction amounts are to be manipulated to calculate the allocation amount to be posted. For example, you may want to allocate only 45% of the original source amount.
If an allocation ratio code is not assigned to an allocation in Corporate Allocation Setup (CAD), then 100% of the source amount is posted to the target account.
How is the Ratio Defined?
An allocation ratio is maintained, or determined, by the postings made to a ratio account, or range of accounts. So, when you define an allocation ratio you must identify the ratio accounts. These are often memo accounts.
The transactions posted to the ratio accounts are used to determine the ratio amount. The allocation ratio definition identifies the transactions to be retrieved for the ratio accounts. These transactions are then summed to find the ratio amount. For example, you might retrieve the year-to-date transactions, or the current period transactions, for the ratio account.
This ratio amount is then applied to the source amount of the allocation to determine the target posting amount. It is applied in one of the following ways according to the ratio basis chosen: