Allocations

An investment or expense may be shared by more than one class. An allocation scheme records who participates and how much of the item each participant receives. It does not itself pay the item or post accounting.

Build the participation relationship

The allocation separates the source item from the arrangement used to share it. The scheme identifies the arrangement; its entries identify participating owners and their percentages; an Allocated Item links an existing investment, expense or income to that arrangement. A scheme without the item link does not say what is being shared, and an item link without complete entries does not establish complete participation.

Suppose a hypothetical USD1,000 fund expense is shared 60% by Class A and 40% by Class B. The records express that arrangement as follows:

• Allocation Schemes identifies the arrangement, with its name and effective date.
• Allocation Entries identifies its owners and percentages: one Class A entry at 60% and one Class B entry at 40%.
• Allocated Items connects the existing expense to that scheme. It identifies what those percentages apply to.

The expense remains one USD1,000 source record. The participation is USD600 for Class A and USD400 for Class B. A second expense can use the same scheme when the same arrangement applies; the scheme is not another expense.

Use a share-class owner when the participation is defined at class level. Use a subscription owner when the arrangement is defined for particular subscriptions. These choices represent different owners; confirm the governing allocation before substituting one for the other.

Check the complete allocation

For a fully allocated item, the applicable ownership percentages should total 100%. Review the effective entries together; an individual entry's valid percentage does not prove the whole scheme is complete. Check that the intended expense or investment appears in Allocated Items, rather than assuming that naming a scheme attaches it.

Effective dates determine which arrangement a dated view uses. Before changing an arrangement, inspect its existing scheme and entry dates and the guide for the supported editor. Do not overwrite historical percentages merely to make today's view agree. The schema stores dated entries; it does not establish that every consumer handles multiple overlapping schemes identically.

For a three-way monetary split, displayed rounded amounts can leave a residual cent. Review the stored percentages, the resulting amounts and the calculation's rounding treatment. Do not invent a residual allocation or assume the display proves the stored total.

Use the saved example

In the Learning Sandbox, Harbor Example Software is linked to allocation scheme #1, with an entry assigning 100% to Class A. Share Class Structure shows the class's USD40,000 investment contribution. The scheme explains that attribution; the outgoing cash split separately identifies who owns the cash.

The core USD1,200 expense has no qualifying class allocation in the existing example. It can exist and be paid while remaining absent from a class timeline. First compare the Expense and Income source records with Allocations → Data → Allocated Items. Expense #1 has no Allocated Item link, so it is outside Allocation Coverage, even with Entity cleared. Use FundOps Recon → Allocation Coverage to check existing item-to-scheme relationships; an empty result does not establish that every expense or income has been allocated. Do not insert another expense to make it appear.

Open Allocations for the native Data and Create Allocation guides. After an authorized save, verify the scheme, entries and item links, then refresh the affected view with the same scope. Participation schemes are separate from period capital-allocation runs in Accounting.