As organizations grow, so does financial complexity. Multiple entities. Shared services. Intercompany expenses. Department-level reporting. What often starts as a manageable spreadsheet quickly turns into a monthly bottleneck filled with manual work, version control issues, and audit risk.
One of the most common challenges I hear from finance leaders evaluating new accounting software is this:
“Allocations are eating up too much time, and we still don’t fully trust the numbers.”
That’s exactly why Gravity Software introduced its new Allocations capability — purpose-built to automate financial distributions across complex, multi-entity organizations.
This article is designed for buyers in the research and evaluation stage who want to understand what modern allocation software should do, why spreadsheets fall short, and how Gravity’s Allocations feature fits into a scalable financial resource management strategy.
Why multi-entity allocations break down as businesses scale
Allocations are rarely the problem at small scale. But as organizations add:
- Multiple legal entities
- Shared services and centralized costs
- Departmental or dimensional reporting
- Ownership, investment, or fund structures
…manual allocation processes start to crack.
Finance teams often rely on spreadsheets to allocate rent, payroll, IT costs, management fees, or shared vendor expenses. These spreadsheets are time-consuming to maintain, difficult to audit, and disconnected from the general ledger.
The result?
- Delayed closes
- Inconsistent allocation logic
- Limited transparency for auditors and leadership
- Reconciliation headaches between local and consolidated books
What is multi-entity allocation software?
Multi-entity allocation software automates the distribution of revenues and expenses across entities, departments, accounts, or dimensions using predefined rules.
Instead of exporting data, applying formulas, and manually posting journal entries, allocations are:
- Rule-based
- Repeatable
- Traceable
- Posted directly to the General Ledger and Accounts Payable
This shift from spreadsheets to system-driven allocations is critical for organizations focused on accuracy, audit readiness, and real-time visibility.
How Gravity's allocations feature works
Gravity’s Allocations functionality is built directly into its multi-entity financial platform, ensuring allocations are synchronized across all entities and reports in real time.
Flexible allocation methods
Gravity supports multiple allocation approaches, including:
- Percentage-based allocations: Distribute amounts using predefined percentages across entities, departments, or dimensions.
- Statistical allocations: Allocate costs using operational drivers such as headcount, square footage, usage metrics, or transaction volume.
- Basis allocations: Allocate costs based on the values in defined basis accounts (for example, allocating benefit costs based on values in salary accounts).
These rules are defined once and reused consistently, eliminating guesswork and manual recalculation.
Running allocations
Allocations can be run using values on a period or annual basis.
Direct posting to AP and GL
Unlike standalone tools, Gravity posts allocation results directly to:
- Accounts Payable (AP) for vendor expense distributions
- General Ledger (GL) for allocation journals
Both local and consolidated ledgers remain synchronized, eliminating reconciliation delays.
The real advantage: Visibility, control, and audit readiness
Automated allocations aren’t just about speed. They’re about trust in the numbers.
With Gravity’s Allocations feature, finance teams gain:
- Full allocation history with traceability
- Clear audit trails for every distribution
- Confidence that allocations align with defined business logic
- Real-time reporting through native Power BI and Excel integration
Because allocations are part of the same system that manages financial data, reporting updates instantly — without batch processing or manual reconciliation.
Why Gravity is different
Gravity’s Allocations capability isn’t a bolt-on tool. It’s part of a broader financial resource management system designed for organizations operating across multiple entities.
Built on the Microsoft Power Platform
Gravity is built on Microsoft’s secure, scalable Power Platform, providing:
- A single source of financial truth
- Seamless integration with Power BI, Excel, Teams, and other Microsoft tools
- Flexibility to adapt as organizational complexity increases
Designed for multi-entity complexity
Gravity was purpose-built for organizations that have outgrown entry-level accounting software but don’t want the rigidity or overhead of a traditional ERP.
Allocations work alongside:
- Multi-entity accounting
- Consolidated reporting
- Dimension reporting
- Budgeting
- Investment and ownership tracking
This ensures financial distributions support broader business strategy — not just accounting mechanics.
Is allocation automation right for your organization?
If your team is managing:
- Shared costs across multiple entities
- Spreadsheet-driven allocation models
- Manual journal entries each close
- Limited visibility into how costs are distributed
…it may be time to move allocations into your accounting system.
Gravity’s Allocations feature was designed specifically for growing, multi-entity organizations that need accuracy, control, and scalability without unnecessary complexity.
Explore multi-entity allocation software in action
Allocations don’t have to slow down your close or create uncertainty in your financial reporting.
If you’re evaluating accounting software and want to understand how automated, multi-entity allocations fit into a modern finance stack, Gravity Software is worth a closer look.
Explore how Gravity’s Allocations feature simplifies financial distribution, improves accuracy, and scales with your organization.
Schedule a demo with Gravity Software to see it in action.
Gravity Software
Better. Smarter. Accounting.
