[How to] Configure Advanced Rules Structure, Concept, Validation- Part 1

Dear Dynamics 365 Lovers,

Following my last blog on How to] Configure Account Structure and link with Ledger, booking entries in MSD365 FO, I wrote the below blog on Advanced Rules Structure, it will help Consultants to understand the concept, configuration and end result of setting up Advanced Rules Structure in Microsoft Dynamics 365 Finance and Operations.

Let’s explore

Why Advanced Rules Structure required?

The basic and common question is, if we have account structure setup then why Advanced Rules structure is required?

Answer is- By setting up only account structure, we enable system to allow some segment or Financial Dimension with allowed values, however on the flip side, if there is any requirement from business to allow financial dimensions along with given condition (if, or, and), it does not meet the requirement, here we need advanced rule structure.

Pre-requisite

It is mandatory to have understanding about Account Structure- check out my blog on this topic How to] Configure Account Structure and link with Ledger, booking entries in MSD365 FO 

Business requirement Example

Group Accounting department has come up with requirements to setup accounting rule for Expense accounts and Asset accounts, following are the requirements.

1. Asset Account can only be used with Cost Center 101 to 200 and at the same time BU can be used only from BU150 to 300 for asset accounts.
2. For Expense Accounts- Cost Center can only be used from Cost Center 201 to 500
3. Furthermore For Expense Accounts- Cost Centers (201 to 500) has some broken conditions, see below

• Cost Center 201 to 300 can only be used with Business Unit 1 to 50
• Cost Center 301 to 400 can only be used with Business Unit 51 to 99
• Cost Center 401 to 500 can only be used with Business Unit 100 to 149

With this given requirement, business already has setup account structure for Asset and Expense accounts separately.

Configuration

We shall start from requirement 1 - Asset Account can only be used with Cost Center 101 to 200 and at the same time BU can be used only from BU150 to 300 for asset accounts.

We can break this requirement into two parts.

1. Asset Account can only be used with Cost Center 101 to 200
2. With Asset Account, BU can be used only from BU150 to 300

1: We shall Update existing ‘Asset Account Structure’ with CC101..CC200 into the CC segment, this will restrict system to use any other CC than in between CC101 to CC200.

Go to Account Structure and select the structure for asset-> Update CC101..CC200 in this case.

Create Advanced Rule

2:We shall create new rules for BU150 to 300, by which, only BU from 150 to 300 can be used.

Navigate to General Ledger- Chart of Accounts- Structures- Advanced Rules Structures

Create new and add names and then add Segment as BU

Now add the BU condition as per the requirement, which is BU from 150..300 to be allowed only.

Activate the Rule

Now once done, activate the Rule

Assign the rule to account structure 

The important part is to assign the Advanced rule to the account structure  (Navigate to General Ledger- Chart of Accounts- Structures- Configure account structure )

Select Asset structure and click on ‘Advanced rule’ in action pane->Create new and add name and description

This form is the core setup to configure, from here we add criteria and link rules we created

Create new

Here we add Criteria ( CC 101 to C200 is between and includes in our case).

Also, here we link the advanced rule by selecting from the list, see below.

Lastly, very important, activate the account structure (Asset structure in our case)

The setup is done.

Using the Advanced rule Structure. 

Lets validate the configuration by creating few general journal entries.

1:We have selected 10009 an asset account and system should allow only CC101 to CC200, see below

2:Now, we have used CC202 with 10009, and it should not allow because our advanced rule only allowed from CC101 to CC200

3:Now, we used 10009 with CC198, as per the rules, BU is only usable from 150 to 300, see below, BU can be selected from 150 only and can be used till 300

4:We tried to use BU 301, however system gave error, because we added the rules which can only be used till BU300, see below error.

This is it for this article, we shall go through the requirement 2 and 3 in my next blog, below are the points we shall go through.

2)For Expense Accounts- Cost Center can only be used from Cost Center 201 to 500

3)Furthermore For Expense Accounts- Cost Centers (201 to 500) has some broken conditions, see below

• Cost Center 201 to 300 can only be used with Business Unit 1 to 50
• Cost Center 301 to 400 can only be used with Business Unit 51 to 99
• Cost Center 401 to 500 can only be used with Business Unit 100 to 149