Topic Covered: Ledger Allocation Rule, Ledger Allocation Basis, Statistical Account
This Blog is about how a default ledger allocation works based on ledger allocation rule set-up in Dynamics 365 for Finance and Operations.
For an organization that needs to segregate its expenses based on multiple dimensions, cost centers, and projects, Dynamics 365 Finance and Operation provides a solution that can automatically split up using Ledger allocation rule.
Configure the following steps in Dynamics 365 F&O for Ledger allocation rule:
- Search Ledger Allocation Rule Or General Ledger -> Allocation -> Ledger Allocation Rule
- Click New and Create a new ledger allocation rule. Ex: Admin Expenses (Admin). Fill in the details:
- Rule name
- Allocation Method
- Journal Name
- Click on Source icon
- Field setting as financial dimension and select appropriate business unit
- Field Setting as Main Account and select Ledger main account no.
Note: We are selecting Admin Expenses Ledger as Main account.
- Click on destination
- To Account
- To Financial Dimension
Here, we are allocating the expense to the same GL account but to different Business Unit (Dimension)
Smith, The Account Manager of Sydney University, booked an entry for 7,000 AED in Ledger Account Administrative & General Expenses (9050) by using a single business unit (152- C_TS) and he want the amount to segregate into different business unit (courses) based on No. of Student in each department – (158-D_RE) (160-D_PO) (161-D_ST) & (159-D_CHE)
The following table shows the type of accounts defined and the business units:
|Ledger Account||Account Name|
|9050||Administrative & General|
Following are the dimensions defined:
|Dimension Code||Dimension Name||No. of Students|
|152-C_TS||College Overall Spending||–|
Below is the entry posted for 7000 AED
To define no. of student against each department: – 1
Setup a GL Account under Main Account Category as – STATISTICAL
An Example of a journal entry using statistical Account, Posting No. of resource against each course (Business Unit)
After posting entry with the statistical account, create LEDGER ACCOUNT BASIS.
- General -> Allocation -> Ledger Account Basis
- Click new and create new Ledger Allocation Basis
- Define Field Setting Financial Dimension > Business Unit and select the Source Criteria – 152-C_TS
- And the main account as 9190 (Head Count – STATISTICAL ACCOUNT)
- Save and close it.
To Process Allocation Request:
- Go to General Ledger -> Periodic -> Process Allocation Request
- Select appropriate Basis ID and run the process allocation batch job.
- Click on ok and go to general ledger > Journal > Allocation open last entry and view the detail.
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