MENU
Refer to the following scenario to answer the question below.
A company rents multiple office buildings around the country, and books rent expense for all buildings to the same ledger account and cost center. Multiple cost centers use office space in each building. The company wants to allocate costs from ledger account 6100: Facilities and cost center 34000: Facilities to cost centers 71000, 72000, and 73000, based on the square footage of those three cost centers.
When configuring the target for your allocation definition, which section should you map the cost centers from?
Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:
The target cost center worktag should be mapped from the Basis section because the basis contains the dimensions and statistical values that determine how the allocation is distributed. In this scenario, cost centers 71000, 72000, and 73000 are the basis dimensions, and their respective square-footage statistics determine each cost center's pro-rata share.
The Source section identifies the amount being allocated: activity in ledger account 6100: Facilities associated with cost center 34000: Facilities. Mapping the target cost center from Source would preserve cost center 34000 on the allocated lines, which would defeat the requirement to distribute the expense to the consuming cost centers.
Within the Target component, Workday permits worktag values to be obtained from Source, Basis, or User Specified configuration. Selecting Basis causes each generated target line to inherit the cost center associated with the square-footage value used in that line's allocation calculation. The Offset component then relieves the originating facilities cost pool and normally retains the source-company and source-worktag context.
Accordingly, Basis is both the calculation driver and the correct mapping source for the receiving cost centers.
Official Workday reference: Workday Education - Allocations; topics: Allocation Definition: Basis, Allocation Definition: Target, Worktag Mapping, and Pro-Rata.
===============