Definition: The rules and formulas used to calculate what percentage of a given shared business expense is allocated to a specific department, project, or entity.
Example: An example of an expense allocation policy would be a rule that states that funds in a portfolio must bear expenses in alignment with their relative size, so the largest fund bears 60% of the expense, the second largest fund bears 30%, and the smallest fund bears 10%.
Explore IVP Accounts Payable Services
IVP Accounts Payable Services helps buy-side firms apply expense allocation policy consistently. This service streamlines vendor management, invoice processing, and expense allocations with advanced automation. Offered as a managed service in tandem with Expense Allocation System (EAS)™ by IntegriDATA, an Indus Valley Partners company, IVP AP Services help firms manage labor-intensive tasks like invoice processing and transaction handling while maintaining full control and oversight.
