Recurring Journals and Mass Allocation

What is the difference between Recurring Journals and Mass Allocation?

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  • Dec 29th, 2007

Recurring Journals are for transactions that repeat every accounting period. Example: Rent expenses that recur every month.
Mass Allocation Journals are for single journal entry formula that allocates revenues and expenses across a group of cost centers, departments, divisions or cost centers. Example: Redistribute monthly rent expense to departments based on the amount of space each dept occupies.
Rent expense for each dept = Total rent expense x area used by dept/ total area.
Formulas per line            one formula per line          one formula for many lines
Formula                               Any formula                   A*B/C 

Recurring Journals: The Journals which are repeated one or more periods are called as "Recurring Journals.  
Recurring Journals are classified into 3 Types:
1.) Standard Recurring Journals
2.) Skeleton Recurring Journals
3.) Formula Recurring Journals

(1) Standard Recurring Journals:- According to Standard Recurring Journals, "amounts are constant".

(2) Skeleton Recurring Journals:- According to Skeleton Recurring Journals, "amounts are variables".

(3) Formula Recurring Journals:- According to Formula Recurring Journals, "amounts are to be calculated by using Formula".

Mass Allocations:
Mass Allocation Journals are used to allocate the expenses or revenues to the various departments, branches, locations depending upon usage factors.

Recurring journals: If you record the journals repeatedly that will call as recurring journals that means periodic transactions.
we have 3 types recurring journals those are
1) Standard recurring journal: In any period activity if the amount is fixed that will call as standard recurring journal. in standard recurring journal the amount and account is fixed.
Ex: rent
2)Skeleton Recurring journal: In any periodic activity if amount is not fixed then it will call as Skeleton recurring journal. in skeleton recurring journal amount is not fixed but account is fixed
Ex: post paid mobile bill, electricity bill
3)Formula recurring journal: in any periodic activity if the amount can find with the help of formula then we can call it as formula recurring journal
Ex: depreciation

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