SunSystems Corporate Allocations

Managing financial transactions across multiple departments, entities, or business units can be a complex and time-consuming process. SunSystems Corporate Allocations provides businesses with a powerful solution to automate and simplify the process of splitting and reallocating costs, revenues, and other financial transactions. This tool is designed to enhance financial efficiency by providing flexible allocation methods that suit diverse business needs.

What is SunSystems Corporate Allocations?

SunSystems Corporate Allocations is a module within Infor SunSystems designed to automate the allocation of financial transactions. It allows companies to split, reassign, or adjust expenses, revenues, and other ledger transactions across multiple entities, departments, or projects. The allocations can be based on predefined rules, including static ratios, statistical data, or financial data recorded in SunSystems.

This module simplifies intercompany transactions by generating automatic ledger entries, ensuring that financial records are accurate and balanced across all entities. By automating these processes, businesses can save valuable time, reduce manual errors, and ensure compliance with internal financial policies.

Key Features of SunSystems Corporate Allocations

1. Flexible Allocation Methods SunSystems Corporate Allocations offers three primary methods of allocation:
   • Apportionment: This method spreads costs or revenues based on statistical or financial data. For example, a company can allocate overhead costs across different departments based on floor space or distribute production costs across products by units produced.
   • Fixed Percentage: In cases where the allocation remains consistent month-to-month, businesses can apply a fixed percentage. For example, allocating 60% of the marketing budget to a specific department.
   • Fixed Amount: For cases where a fixed value is allocated, such as assigning $1,500 in maintenance costs to the head office, this method allows for straightforward, fixed-value allocations.

   These flexible allocation routines ensure that businesses can handle both dynamic and static allocation requirements without manual intervention.

2. Intercompany Capabilities One of the standout features of SunSystems Corporate Allocations is its intercompany processing capabilities. For organizations with multiple legal entities that frequently trade or share resources, intercompany accounting can become a significant administrative burden. SunSystems automates this process by generating the necessary entries for each entity, ensuring that accounts are balanced across all units. This reduces the workload on finance teams and improves the accuracy of financial reporting.
3. Automated Charge Generation In addition to cost allocations, SunSystems Corporate Allocations can generate charges. Similar to the allocation methods, charges can be based on apportionment, fixed percentages, or fixed amounts. This is particularly useful for internal charges, such as management fees or handling costs, which need to be apportioned across different departments or business units.For example, handling costs can be charged to departments based on the number of transactions processed, or intercompany interest charges can be calculated at a set percentage on the current group treasury balance. Automating these charges reduces manual work and ensures consistency in financial transactions across the business.
4. Scalability and Integration As part of the broader Infor SunSystems suite, the Corporate Allocations module integrates seamlessly with other financial management modules. Whether it’s accounting, inventory, or purchasing, this integration ensures that allocations and charges can be efficiently managed across the entire organization. This scalability allows businesses to expand their operations without the need for complex, additional systems.Additionally, the platform’s ability to automate repetitive tasks makes it highly scalable, allowing growing businesses to handle increasing transaction volumes without a significant increase in administrative work.

Benefits of Using SunSystems Corporate Allocations

1. Improved Financial Accuracy Manual allocations and intercompany charges are prone to errors, especially when dealing with large volumes of data. By automating these processes, SunSystems Corporate Allocations ensures that all financial transactions are recorded accurately, minimizing the risk of discrepancies and improving overall financial reporting.
2. Time Savings Automating the apportionment of costs and revenues reduces the amount of time finance teams spend on manual tasks. This allows employees to focus on more strategic activities, such as financial analysis and decision-making, rather than routine data entry and reconciliation.
3. Compliance and Control The predefined rules and automation features built into SunSystems Corporate Allocations ensure that all transactions follow the company’s financial policies. This ensures greater compliance with internal controls and reduces the likelihood of errors or fraud.
4. Seamless Collaboration Across Entities For businesses that operate across multiple entities, departments, or projects, SunSystems Corporate Allocations provides a seamless way to manage intercompany charges and allocations. This ensures that each unit’s financials are accurate and up-to-date, improving the overall efficiency of the organization.

Conclusion

SunSystems Corporate Allocations is an essential tool for businesses looking to streamline their financial processes. Its flexible allocation methods, robust intercompany capabilities, and automated charge generation ensure that businesses can manage complex financial transactions with ease. By reducing manual effort and improving financial accuracy, this module empowers finance teams to focus on strategic tasks and ensures that businesses can grow and scale without being bogged down by administrative burdens.