Oracle Application's Blog: How to set up mass allocation in oracle r12

How to set up mass allocation in oracle r12

In this post , We will be discuss about the setup of mass allocation in oracle r12. GL mass allocation is one of the great feature in oracle application, when you want to create the automate journals based on the chart of account segments values or we can say from group of cost centers , Natural accounts , Locations as per the Chart of account segments .We can write some formula in the mass allocation setups, which takes the input from our chart of accounts balances and then create the automate GL journals based on our GL mass allocation formulas. Here below i will try to explain the setup of mass allocation in oracle r12.

Example of set up mass allocation in oracle r12

If we have 3 bank accounts and we are using the Natural Account from 50000001 to 50000003 for these bank accounts to track the balance of these accounts in oracle application.

50000000 is the parent account for Natural Accounts 50000001 to 50000003.

Now , Our business requirement is we want to calculate the Interest for all these bank accounts Natural account(50000001 to 50000003) monthly and then wants to create the journal each month in different Bank Interest Natural account(60000001) for the interest amount of all these all these bank accounts Natural account(50000001 to 50000003).

Concept of mass allocation in oracle apps r12

Now to create any Mass allocation formulas , there are few things , which are quite important and we need to prepare our formula according to that.

In mass allocation t, four things are quite important and these are A, B, C ,T & O.

A:- A always represent the Total Value/Amount on that , we DO apply the formula. For Example in our Case , Values in bank accounts Natural account(50000001 to 50000003) are our A.

B:- B represents the ‘Usage Factor’. The value under B , always multiple with that value which do comes after system drive the formula with A & T. The final value from A & T will multiply with the B.

In B , We have two option , either we can provide the constant value or we can give the reference for some STAT journals and based on the STAT journal , system do the formula working.

In our case , We know the Interest percentage provided by bank every month so we will directly put the contact value .15 We don’t need to create some stat journals and then drive the values from that.

C:- C represents the ‘Total Usage’. It means this is something related to Summary. For both B & T , We have two option , either we can provide the constant value or we can give the reference for some STAT journals and based on the STAT journal , system do the formula working. In our case , we know that we need to create the Monthly journals for the bank interest so for this we need to find our the monthly balance for these bank accounts Natural account(50000001 to 50000003) so to find out the monthly banks balance we need to divide the Formula variable A with 12. So for this , we will put the constant value 12 under C.

T :- it’s not the T Account as we see in Ledger. It is the Target Account of the Journal l or these are the Debit Accounts which should hold the allocated expense. So my Interest amount for these bank accounts Natural account(50000001 to 50000003) will be allocated to these accounts mentioned under T variable.

In our case , We want to book the interest in Bank Interest Natural account(60000000). So we need to give this Account with other Chart of Account values.

O :- O represents the ‘Off set account’. This account is same as the account we gave in “A”. This is the credit account for the creating Journals.

Detail Steps to do the set up for mass allocation in oracle r12

Step1:- Go to General Ledger ==> Journals ==> Define ==> Allocation.

How to set up mass allocation in oracle r12

Step2:- Enter the Allocation Batch Name which will be create automate.

Click on the Formulas Button as below.

Step3:- Enter the name which we want to give for the allocation. Enter the Currency in which we want to create the Automate journals from this allocation formula.

Step4:-

This is the below allocation formula , which we have to create as per our business requirement.

As i explained above about A , B , C , T and O. we need to create the formula for each variable A , B , C T and O.

Step 5:- Now we are creating the formula for the Variable 'A'. Click on the 'A' variable line and as i said the business requirement (We have 3 bank accounts and we are using the Natural Account from 50000001 to 50000003 for these bank accounts to track the balance of these accounts in oracle application.

50000000 is the parent account for Natural Accounts 50000001 to 50000003)

As below , I am keeping other chart of accounts segments as a C (Constant) but Account segment i am keeping 'L'

C: Constant – The segment is constant and doesn’t need any Loop or Sum. And the balance should be picked against “A” as a constant

L: Looping – The segment needs to loop from first value to last value as per Parent Account Hierarchy.

S: Summing – The segment needs to sum the value in provided in STAT JV.

Generally the account code in “A” doesn’t not need any kind of looping or summing. So every segment should be given the value of C. The value this account has for the particular period should be picked as a constant. Keep the currency as Entered.

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Step 6:- For Variable 'B' , we will enter the monthly Bank Interest '2.1' as a constant value.

Step 7:- For Variable C , We will enter the number of Months in the year and that is '12'

Step 8:- For Variable 'T' , We will use this below settings and By mistake i used Account as a 'L' but please keep all these things as a 'C'.

Step 9:-For Variable 'O' , We will use this below settings. Most of the times , we keep 'O' variable same as 'A' variable as step 5.

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Step 10:- As below , Allocation showing 'Not Validate'. Click on the 'Validate All' button to validate the allocation formula and if every thing will be worked then allocation status will be changed to 'Validated'