This video will take you through configuring General Ledger Allocations in Finance Pro
General Ledger (GL) allocations allow your firm to track financial activity by location, division, and member assignments. Proper configuration ensures transactions are allocated consistently and supports accurate financial reporting.
Two questions drive every allocation decision:
* **What information gets recorded?**
* **Whose values does the system use?**
These questions are answered by two settings:
* **Allocation Method** – Determines what allocation information is captured.
* **Allocation Role** – Determines whose allocation information is used.
Together, these settings control how transactions are tracked throughout the general ledger.
Before You Begin
Before you can enable General Ledger Allocations, you must configure:
* A default location
* A default division
**Note:** The system will not allow General Ledger Allocations to be enabled unless both a default location and a default division have been configured.
Verify the Default Location
To verify or update the default location:
1. Select your username in the upper-right corner.
2. Click **Firm Settings**.
3. On the **Settings** tab, select **Locations**.
4. Review the list of locations and confirm that one location is designated as the default. The default location is indicated by a pin icon.
5. If you need to designate a different default location:
1. Click **Edit** for the appropriate location.
2. Enable **Set Default**.
3. Save your changes.
Verify the Default Division
To verify or update the default division:
**Please note Divisions are within the "Settings Tab"
1. In **Firm Settings**, select **Divisions**.
2. Review the **Default** column and confirm that one division is marked **Yes**.
3. If you need to designate a different default division:
1. Click the pencil icon next to the appropriate division.
2. Enable the **Default** setting.
3. Save your changes.
Assign Member Locations and Divisions
If your firm uses member-specific locations and divisions, assign them before enabling GL allocations.
To assign member locations and divisions:
1. Select your username in the upper-right corner.
2. Click **Member Directory**.
3. Open the applicable member profile.
4. Assign the member's location and division.
5. Save your changes.
6. Repeat these steps for any member who may serve as a:
* Working Member
* Originating Member
* Managing Member
Enable General Ledger Allocations
To enable GL allocations:
1. Navigate to **Firm Settings**.
2. Select the **Configurations** tab.
3. Click **Accounting**.
4. Locate **Enable General Ledger Allocations**.
5. Toggle the setting to **On**.
View the Audit History
1. Click the audit icon next to the setting.
2. Review the audit log to view:
* The changes that were made
* The date and time of the changes
* The user who made the changes
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Configure the Allocation Method
The **Allocation Method** determines what allocation information is recorded.
Available Options
Location Only
* Transactions are allocated by location
* Division will not be recorded in system generated entries
Division Only
* Transactions are allocated by division
* Location will not be recorded in system generated entries
Location and Division
* Transactions are allocated by location and division
* Both will be recorded
**Tip:** Select **Location and Division** if your firm requires the most detailed allocation tracking.
Configure the Allocation Role
The **Allocation Role** determines whose location and division information is used when creating allocation entries.
Available Options
Firm (Default)
Uses the firm's default location and division settings.
Working Member
Uses the location and division assigned to the working member.
Originating Member
Uses the location and division assigned to the originating member on the matter.
Managing Member
Uses the location and division assigned to the managing member on the matter.
How Allocation Settings Work Together
The Allocation Method determines whether allocations are tracked by:
* Location
* Division
* Both location and division
The Allocation Role determines whose allocation information is used:
* Firm
* Working Member
* Originating Member
* Managing Member
Together, these settings determine how transactions are allocated throughout the system.
Transaction Types and Allocation Behavior
Transactions with User-Defined Allocations
The following transaction types allow users to specify allocation values directly:
* Accounts Payable transactions
* Journal Entries
* Miscellaneous GL Receipts
For these transactions:
* The Allocation Role setting does not apply.
* The location and division values entered by the user are recorded in the GL allocation file.
**Important:** User-entered allocation values always take precedence for these transaction types.
Transactions That Always Use Firm Defaults
The following transaction types do not allow users to select location or division values:
* Bank Deposits
* Client Refunds
* Client Expenses
* Trust Transactions
For these transactions:
* The firm's default location and division settings are always used.
* The Allocation Role setting does not affect allocation behavior.
**Note:** Even if the Allocation Role is configured as Working Member, Originating Member, or Managing Member, these transaction types continue to use the firm's default allocation values.
Client Invoices and Client Payments
Client invoices and client payments respond to the configured Allocation Role.
Allocation behavior is as follows:
Allocation Role |
| Allocation Source |
Firm |
| Firm default location and division |
Working Member |
| Working member associated with the invoice |
Originating Member |
| Originating member assigned to the matter |
Managing Member |
| Managing member assigned to the matter |
Example
Assume an invoice is split between two working members:
* One working member is assigned to the Chicago office.
* One working member is assigned to the Dallas office.
If:
* **Allocation Method = Location and Division**, and
* **Allocation Role = Working Member**
the system allocates the GL entries between Chicago and Dallas based on each member's percentage of the invoice.
Additional Considerations
**Important:** If a member does not have a location or division assigned, the system automatically uses the firm's default settings.
**Note:** When the Allocation Method is set to **Location Only**, users can still enter division values on applicable transactions. However, system-generated entries do not include division allocations.
**Note:** When the Allocation Method is set to **Division Only**, users can still enter location values on applicable transactions. However, system-generated entries do not include location allocations.
Result
After GL allocations are enabled and configured:
* Transactions are allocated consistently.
* Allocation information is captured according to the selected Allocation Method.
* Allocation values are sourced according to the selected Allocation Role.
* Financial reporting throughout the general ledger is more accurate and reliable.