Allocation Formula for Recurring Journals

Summary:

I have a requirement where a source journal balance is received in December 2025, and this balance needs to be allocated equally over the next 12 months (January 2026 to December 2026) using recurring journals.

Scenario: December 2025 Account A balance: –12,000

This balance should not be adjusted in December. Instead, starting January 2026, the amount should be spread equally across the next 12 months.

Expected Accounting Treatment:

Total amount to allocate: 12,000

Allocation period: Jan-2026 to Dec-2026 (12 months)

Monthly amount: 1,000

Monthly Journal Entry (Jan-2026 to Dec-2026): Dr Account A – 1,000 Cr Offset Account (Account X) – 1,000

Example Flow:

Dec-2025

Account A balance: –12,000

Jan-2026

Dr Account A 1,000

Cr Account X 1,000