Allocations

Allocations are used for the following purposes:

  • To re-allocate departmental expenses (expenses directly related to specific department) made by other departments to related department. For example, POM department is responsible for changing of light bulbs. If Room department records that they changed light bulbs by 300 USD, this amount should be reallocated to POM department
  • To re-allocate departmental revenue made by other departments to related department. For example, some customer ordered nutrition class which Health and Spa conducts in Beach Restaurant as a part of event.

    Revenue of the class is registered by F&B, however it should be re-allocated to Health and Spa as it is departmental revenue.

  • Year-end closing procedure. Balances of Revenue and Expense accounts move to Income Summary account
  • Re-allocate revenues and expenses of inventory operation after Automatic Accounting Schedule