How do "IN ALC" expenses work from a financial perspective?

I understand how to set up an expense for an internal charge, but how does the expense get to the financials?  When I create an expense with nom_flag_5 = 'Y' the estimated amount is assumed to also be the ALC amount.  But I need this to go to financials to offset the charge included in the item by charging an internal department. 

How is this done in RMS?

thanks