Comprehensive and Detailed 150 to 250 words of Explanation From Workday Record-to-Report/Course Guide/topics:

The allocation source defines the ledger activity that forms the pool to be allocated. Because the requirement is limited to operating-expense activity carrying Cost Center Facilities and Location Chicago, both worktag criteria must be added to the Source section as source filter conditions. Workday will then include only journal activity satisfying the ledger-account criteria and the specified worktags.

Adding the worktags to the statistical definition would change the allocation basis rather than restrict the source pool. The basis determines how the selected amount is distributed, such as by square footage, headcount, ledger activity, or fixed percentage. The Target controls where allocated amounts are recorded, and the Offset determines how the source pool is relieved. Neither target nor offset filtering can correct an overinclusive source calculation. Source worktags of different types are evaluated together, so Facilities and Chicago form the required combined restriction. After updating the definition, the accountant should test the allocation and verify that the source total reconciles to the intended operating-expense lines before running it. Therefore, adding Cost Center and Location to the Source is the technically correct solution.

Official Workday reference: Workday Education - Allocations ; topics: allocation source filters and worktag conditions.

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