How GL Distribution Splits and Distributes GL Postings in iDempiere

GL Distribution is a financial feature in iDempiere that allows you to automatically split or distribute a single General Ledger posting into multiple accounting entries based on percentage rules. Instead of posting to one account combination, iDempiere can distribute the amount across multiple accounts according to defined criteria.

Why GL Distribution Is Used

• To split costs or revenues between departments or cost centers
• To distribute an amount across projects, activities, products, partners, or locations
• To maintain accurate and detailed multidimensional accounting records
• To support compliance, reporting, and internal cost allocation

When a distribution rule is triggered, the system automatically replaces the original account combination with the distribution lines defined here.

Define Distribution Criteria

In GL Distribution, you specify the conditions under which a posting should be distributed — for example:

• A specific account
• A particular organization
• A particular project or business partner

When a journal entry matches these criteria, the distribution rules activate.

Add Distribution Lines

Under the Distribution Lines tab, you define how the amount should be shared:

• Each line contains an account combination
• A percentage that determines how much of the original amount goes to this line
• Overwrite options allow replacing dimension values such as organization, project, product, etc.

The total of percentages should add up to 100%. If one line is left at 0%, it gets the remainder automatically to ensure accurate distribution.

Posting and Distribution

When a financial journal or posting matches the criteria:

• iDempiere automatically applies the distribution rule
• Instead of one posting, multiple accounting entries are created, one for each distribution line
• Each entry reflects the defined percentage and overwritten dimension values (if any)

This allows each piece of the distributed amount to carry its own context (e.g., project, cost center) for accurate reporting.

GL Distribution in iDempiere offers a powerful way to split a single financial posting into multiple detailed entries based on predefined criteria and percentages. It automates cost and revenue allocations across departments, projects, and accounting dimensions while maintaining full audit trails and detailed reporting.