We knew Automated Cost Allocation was important - but we didn’t expect it to become such an essential and in-demand feature for our Emfino users.
It turns out that precise cost allocation - whether it’s analyzing the profitability of products, projects, services, stores, or other profit centers, or accurately assessing the true costs of various functions within multi-entity organizations - is a top priority for many businesses. Automated cost allocation has become an essential tool for financial leaders of multi-entity companies seeking deeper insights to drive better decision-making.
That’s why we’ve recently upgraded Emfino's Cost Allocation feature to make it even faster, smarter, and easier to use. With just one click, you can run automated cost allocation bookings for all Group companies. The feature now includes built-in data quality checks to flag potential data input issues, simplified formula definitions, and other enhancements.

Emfino Reporting, Budgeting, and Consolidation software offers advanced, automated, rules-based cost allocation for multi-entity organizations—all performed directly within the system. This enables accurate profitability analysis across all Group entities, as well as detailed profitability insights by products and services in Consolidated reports. These capabilities are essential for making informed and strategic financial decisions.
What Makes Cost Allocation in Emfino So Advanced:
1) Automated Allocations with a Single Click
Once transactions and key values (important non-accounting data) for all Group entities are imported into Emfino, a single press of the "Run auto-booking" button triggers all cost allocation bookings automatically. This enables accurate profitability analysis for your products, services, projects, stores, branches, and more. 😊
2) Step-Down Allocation Logic
Cost allocation in Emfino follows a step-down logic, taking into account the sequence of allocation bookings. Earlier bookings in the sequence can be included in formulas for subsequent allocations. For example, common office expenses are first allocated to the cost centers that use the office, such as the marketing department. Then, when allocating marketing expenses to products, the share of office expenses already allocated to marketing is included in the total marketing expense, ensuring precise cost calculations.
3) Data Quality Checks
Emfino has built-in data quality checks to ensure error-free automated cost allocation bookings. The system identifies and prevents bookings if there are data issues, such as missing transactions, criteria, or key values for a specific entity. It also flags mistakes in allocation bookings, such as incorrect account numbers, ensuring reliable results every time.
4) Consolidated Cost Allocation
Unbelievable but true - cost allocation bookings are also available in Consolidated reports! Emfino allows you to perform profitability analysis at the consolidated group level. And there’s more: we’re working on further enhancing this functionality to automatically eliminate intra-group transactions from cost allocation bookings when a Consolidated view of the reports is selected. Wow! 😲 Do you know of any other system that can do this?
Flexible Cost Allocation Rules
Emfino offers multiple ways to define cost allocation rules, ensuring flexibility to meet the unique needs of your business:
1) Accounting Data-Based Allocations: Cost allocations can be driven by formulas using accounting data already imported into the system. For example, the marketing department's expenses can be allocated to stores proportionally based on their turnover.
2) Criteria-Based Allocations: Create a table with specific criteria directly in the system. Allocation bookings are then made proportionally based on these predefined criteria. For instance, total office expenses can be distributed among departments based on the square meters (m²) each department occupies.
3) Key Values-Based Allocations: Key values - important key non-accounting data (e.g., employee count by cost centers) are imported into the system and used in Custom reports (e.g., to calculate the average remuneration costs per function). Allocation formulas can use these key values to distribute costs. For example, shared internet and cloud storage costs can be allocated proportionally to the number of employees in each department.
4) Manual Allocations: You can also create manual allocation transactions when needed. For example, a Heavy machinery department can issue monthly internal invoices to specific construction projects for machinery usage. This ensures that machinery expenses are accurately recognized in the relevant construction projects.
Emfino’s flexibility ensures that your cost allocation needs are covered, regardless of complexity or unique business requirements. 🚀
Make your Finance Teams happy 😊 - don't spend time on endless and ever-changing cost allocation and profitability calculations!
Examples of Advanced Cost Allocation in Emfino DEMO System + Video
Emfino's Cost Allocation functionality is designed to meet the needs of multi-entity organizations. Here's a breakdown of the process with examples from the DEMO system:
✔️ Six Types of Allocations
There are six types of cost allocations within Emfino. When defining a cost allocation rule (referred to as a "Booking Template" in the system), you assign one of these six types to ensure the proper sequence of step-down allocations.

✔️ Booking Templates (Rules)
Start by preparing an Allocation Booking Template (Example 2). In this template, define rules, formulas, criteria for allocation, the legal entities involved, relevant accounts, and profit/cost centers from the Group COA. Add descriptions, comments, and a sequence number for clarity.
Templates are organized in the "Booking Template List" (Example 3).


✔️ Criteria Tables
Once templates are ready, input specific criteria into the Criteria Table. These criteria can change monthly. For example, allocate office expenses based on square meters occupied by each department or training costs based on the number of hours spent teaching per cost center and an hourly rate.

✔️ Key Value Imports
Transactions and Key Values (essential non-accounting data) necessary for cost allocation -such as employee count by cost centers - most likely are already imported into the system and used in Reporting.

✔️ Summary of Booking Statuses
The summary and statuses of cost allocation bookings can be found in the "Bookings" section. Ensure the correct sequence of bookings.

✔️ Automated Bookings
Move to the "Auto Booking Jobs" section and press "Run Auto Booking" for the selected period and legal entities. The system processes all automated cost allocation bookings in the defined sequence.

✔️ Error Detection
If errors occur (e.g., missing input data or incorrect account usage), the system flags them for correction. Once errors are resolved, bookings are processed smoothly.

✔️ Detailed View of Allocation Booking
Click on a specific allocation and month in the summary section "Bookings" (Example 6) to view its details, including entries and transactions.


✔️ Manual Cost Allocation Bookings
If allocation rules cannot be defined, prepare allocation bookings manually. Values can be copied from Excel, and supporting calculations attached for reference. In Example 11, the Heavy machinery department issues monthly internal invoices for heavy machinery usage in construction projects.

✔️ Profit and Loss Report by Cost Centres
Allocation bookings are visible in the Detailed P&L report by Profit/Cost Centers. This ensures full transparency for the persons responsible for specific cost centers.

In Example 13, a CFO reviews all costs for the Finance Department, including allocated common costs and holding allocation to group entities.

✔️ Consolidated reports
Define Custom reports you need and view them with Consolidated data. Cost allocations will be there 😊. Emfino supports cost allocation insights even at the consolidated level, providing unmatched profitability analysis.



✔️ Video Insight
For a deeper look, check out a video showcasing automated cost allocation insights in the Emfino Demo system - perfect for financial professionals seeking clarity.
This comprehensive functionality demonstrates why Emfino’s advanced cost allocation is a must-have for modern multi-entity organizations. 😊
Next Steps
We encourage you to 📍 Request a Demo on our website by submitting the Contact form. We'll gladly arrange a video call to show you an online demo of Emfino Reporting, Consolidation, and Budgeting system and discuss how it can meet your company's specific needs.
Or
📍Request a subscription fee offer on Emfino Pricing page! We'll prepare and send you a draft offer for a system subscription and set up a video to demo the system and get to know your company.