Practical Guide to General Ledger Allocations in Dynamics 365 F&O

INTRODUCTION

In Dynamics 365 Finance and Operations (D365FO), allocation journals are used to systematically distribute general ledger (GL) account balances across multiple accounts, departments, or financial dimensions based on predefined rules. These rules can support both fixed and variable allocations, helping automate routine distribution processes. 

This article explains the logic of the allocation process, its types, and provides an end-to-end demonstration through a real business scenario.

Let's get started.

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