You want the system to automatically split the amounts posted to the printing expense account between the sales and the support departments. Which definition should you link to the printing expense…

Question

Options

• AA manual distribution rule with a direct allocation
• BA distribution rule allocated to both departments
• CA distribution rule for each department

• A
  9% (5)
• B
  78% (43)
• C
  13% (7)

Explanation

Option B is correct because a single distribution rule can contain multiple department lines (e.g., 60% to sales, 40% to support), and linking that one rule to the printing expense account is all that's needed for the system to automatically split every posted amount between both departments.

Option A is wrong because a manual distribution rule requires human intervention at posting time - it defeats the purpose of automation the question is asking for.

Option C is wrong because you don't link multiple separate rules to one account. A rule per department would mean two separate rules, but an account is linked to a single distribution rule; the split logic for both departments belongs inside that one rule as separate lines.

Memory tip: Think of a distribution rule as a recipe card - one card, multiple ingredients (departments). You tape one recipe card to the account; the system follows all the steps on it automatically. If you need two departments, write both on the same card (Option B), not two separate cards (Option C).

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