In this video we will walk through the configuration settings required to enable General Ledger (GL) Allocations.
Overview
Two questions drive every allocation decision:
What information gets recorded?
Whose values does the system use?
We'll walk through how those questions are answered by the Allocation Method and Allocation Role settings, and how the combination of the two determines how transactions are tracked throughout the General Ledger.
Assign Default Location and Division
Prerequisite: Before GL Allocations can be enabled, you must have both a default Location and a default Division configured in the system.
To assign a default Location:
Click on your name in the top right corner.
Select Firm Settings from the dropdown menu.
Stay on the Settings tab.
Stay on the Locations tab under Settings.
Select edit on the location you want to make the default.
Check the Set Default box.
Click Save.
To assign a default Division:
Click on your name in the top right corner.
Select Firm Settings from the dropdown menu.
Stay on the Settings tab.
Click on the Divisions tab under Settings.
Click the pencil icon on the right of the division you want to make the default.
Check the Default box.
Click Save.
Assign Member-Specific Location and Division
If member-specific Locations and Divisions will be used for GL Allocations, configure each applicable member before using Working Member, Originating Member, or Managing Member allocation roles. To configure a member's Location and Division:
Click on your name in the top right corner.
Select Member Directory from the dropdown menu.
Click on the member.
Stay on the Details tab.
Use the dropdown menu under Location to assign the member's Location.
Use the dropdown menu under Division to assign the member's Division.
Important: Complete this setup for any member who may serve as a:
Working Member
Originating Member
Managing Member
If a member does not have a Location or Division assigned, the system will use the firm's default settings.
Enable General Ledger Allocations
Once the above settings are verified, you can enable the General Ledger Allocations.
Click on your name in the top right corner.
Select Firm Settings from the dropdown menu.
Navigate to the Configurations tab.
Navigate to the Accounting tab under Configurations.
Toggle the Enable General Ledger Allocations switch on.
To review the history of this setting, select the audit icon located to the right. This will open the audit log, where you can see when the setting was enabled or disabled, as well as who made the change.
Configure General Ledger Allocation Method
Once General Ledger Allocations are enabled, you can configure the General Ledger Allocation Method. The Allocation Method determines whether allocations are tracked by Location, Division, or both.
Click on your name in the top right corner.
Select Firm Settings from the dropdown menu.
Navigate to the Configurations tab.
Navigate to the Accounting tab under Configurations.
Use the dropdown menu under General Ledger Allocation Method to select an option.
Location and Division- System-generated allocations will include both Location and Division when applicable.
Location Only- System-generated allocations will include Location but not Division.
Division Only- System-generated allocations will include Division but not Location.
Configure General Ledger Allocation Role
The General Ledger Allocation Role determines where the Location and Division values come from when creating allocations.
Click on your name in the top right corner.
Select Firm Settings from the dropdown menu.
Navigate to the Configurations tab.
Navigate to the Accounting tab under Configurations.
Use the dropdown menu under General Ledger Allocation Role to select an option.
Firm- The system will use the firm's default Location and Division. Applies to transaction types that use firm defaults.
Working Member- The system will use the Location and Division assigned to the Working Member when creating allocations for applicable transactions.
Originating Member- The system will use the Location and Division assigned to the Originating Member on the matter.
Managing Member- The system will use the Location and Division assigned to the Managing Member on the matter.
User-Specified Location and Division Transaction Types
Some transaction types allow users to directly specify the Location and Division that should be used for the allocation. For these transactions, the Allocation Role setting has no impact because the user is explicitly providing the allocation values. Whatever Location and Division the user enters on the transaction will be recorded in the GL Allocation file.
Examples- Accounts Payable, Journal Entries, and Miscellaneous GL Receipts
Non User-Specified Location and Division Transaction Types
Other transaction types do not provide users with the ability to select a Location or Division when the transaction is created. For these transaction types, the system will use the firm's default Location and Division settings. This is important to keep in mind because even if the Allocation Role is set to Working Member, Originating Member, or Managing Member, these transaction types will still use the firm's default allocation values.
Examples- Bank Deposits, Client Refunds, Client Expenses, and Trust Transactions
Important Notes
If a member does not have a Location or Division assigned, the system will automatically fall back to the firm's default settings.
If the Allocation Method is set to Location Only, users can still enter a Division on applicable transactions; however, system-generated entries will not include Division allocations.
Likewise, if the Allocation Method is set to Division Only, users can still enter a Location on applicable transactions; however, system-generated entries will not include Location allocations.
Allocation Reference Guide
Review the Allocation Reference Guide to help visualize how these settings work together. 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.
This additional video will take you through a specific example of General Ledger Allocations in action — using the Location and Division Allocation Method, with the Allocation Role set to Working Member.