About allocating transactions

In the Projects workspace, allocation is the process of distributing amounts to specific accounts, account groups, or both, to recognise expenses and revenues.
For example, each month you can allocate amounts of the actual expenditures in the project and the future revenues calculated based on those expenditures.

The allocation process is governed by allocation rules, which you specify in the Allocation rules (PM207500) window.

There are two stages in the allocation process:

1. Transaction selection

Visma Net uses allocation rule settings to select only those transactions that conform to the rules.
These are used as underlying transactions for allocating amounts and quantities. As underlying transactions, you can, for example, use invoices that your employees paid when they provided a service to a customer.

2. Allocation

The Projects workspace generates one or more allocation transactions with the amounts and quantities calculated, based on the amounts and quantities in the underlying transactions. You can specify rules that generate any transactions involving any accounts and postings, but you normally use allocation to account for any current costs that can be reimbursed (based on the completion percentages of project tasks) and future revenues from the project.

If you, for example, use a cost-based pricing model that implies a 15 percent rise, you can specify an allocation rule that adds up all the current amounts of cost transactions, then multiplies the sum by 1.15, and debits the resulting amount to the account you use for tracking your not-yet-invoiced revenue.

Completion percentage

Before you run allocation, you have to make sure that the percentage of completion is set on the task(s):

• For fixed contract projects: Set the task with the contract amount on the right completion percentage.
• For time and material projects: make sure that the completion percentage of each task is correct.
• When you use the Cost plus allocation method, you must set a margin percentage on the Attributes tab in the Projects (PM301000) window, and make sure that the percentage of completion per task is correct.