Shared cost allocations, calculated from your drivers
Rent, IT, and HR costs get split across departments and entities every month, usually with a headcount or square footage spreadsheet that has to be refreshed first. With current driver data pulled, the Accounting Agent runs the allocation and drafts the entries, so the split is ready to review.
What the Accounting Agent prepares
- An allocation working paper showing each cost pool, driver, percentage, and allocated amount
- Current driver data, such as headcount, square footage, revenue, or usage, pulled from the systems that hold it
- Drafted allocation entries by department, cost center, class, and entity
- A check that each pool is fully allocated, with nothing left over or counted twice
- Driver percentages that moved since last period, flagged
How it works
- Pull the data. Cost pool balances come from your ERP, and driver data from your HRIS, payroll, or other sources.
- Prepare the work in your logic and format. The Accounting Agent applies the drivers and methods your team defines, in your schedule format.
- Review and approve. You check the split, adjust any driver, and approve. The entries post to your ERP after approval.
What stays in your control
- Your team owns the allocation method and every driver
- Entries post only after a reviewer signs off
- Each allocated amount traces to the pool balance and driver behind it
Standard note
FAQ
What is an allocation journal entry?
An allocation journal entry moves a shared cost, such as rent or IT, to the departments or entities that use it, based on a driver like headcount. Common drivers are headcount, square footage, revenue, and usage, and the right one depends on how the cost is consumed. Ledge prepares these entries each period from your drivers.
Can Ledge allocate costs across subsidiaries?
Yes. The Accounting Agent allocates across entities as well as departments. Cross-entity charges are covered in more detail on the intercompany allocations page.
What happens when drivers change?
The Accounting Agent pulls current driver data each period and flags percentages that moved from last period, so a reviewer sees the change before approving.
