Budget Allocations

Budget amounts are allocated in the same way that actual amounts are allocated.  Budget allocations can be used to handle top-down budget processing (where the budgets for individual operations, projects, or accounts are designated as a portion of an overall departmental or project budget).  This processing normally is performed during the budget preparation and review process.  Budgets might be allocated monthly when the budget for a department or operation is based on the actual units produced, hours in operation, or some other periodic value.  This flexible approach to allocating budgets can be very effective when variances from a budget based on a standard monthly throughput are not adequate representations of a department's or operation's performance.  Review the  Allocation Setup and Processing key concept for more information about allocation processing.