Ledger Allocations in Microsoft Dynamics 365 Finance and Operations: Part-2

In the next part of allocation blog, I will try to explain one method of allocation which we left in last blog and also how you can perform ledger allocation in intercompany.

If you have missed my last blog, read it here:

https://exploredynamics365.home.blog/2020/10/05/ledger-allocations-in-microsoft-dynamics-365-finance-and-operations-part-1/

1. Basis Ledger allocation Method:

This allocation method is useful when you want to allocate amount based on another ledger actual amount.

So, lets understand from the scenario:

Let say we want to allocate salaries amount 6,000 from Finance department (1030) to two different departments 1001 and 1010 but on what basis??

So, we would like to allocate based on Sales contribution of there two departments 1001 and 1010, so lets say

Sales-1001 is 5000

Sales -1010 is 3000

So, total sales is 8000, 1001 has 62.5 % contribution and 1010 has 32.5% contribution. Now we would like to allocate salaries as well in same percentage.

So, lets see how we can achieve this:

Step-1: Create Basis rule for both department 1001 and 1010

General Ledger > Allocation> Basis rule > New > Define source

Step-2: Create Allocation rule

General Ledger > Allocation> Ledger allocation rule > New > Select method as basis and enter other details

Step-3: Create Source for Rule

Select Salary ledger and finance department code 1030

Step-4: Create Destination

Select Basis rule as per “1010” and 1001”

Step-5: Process allocation rule and view journal

General ledger > Allocations > Process allocation request

2. Intercompany Ledger Allocation

Ledger allocation can be used for intercompany ledger allocation as well. Let’s understand from one scenario:

Now, we want to allocate “salaries” of department 1030 from one Company A to Company B department 1010 and 1001, based on fixed percentage.

So, expected entry is:

Company A Salary – 1030 Credit 6,000

Company B salary -1010 Debit 4800

Company B Salary – 1001 Debit 1200

Step-1: Create allocation rule

Mark rule as “Intercompany rule”

Step-2: Create Source

Setp-3: Create Destination where amount should be allocated

Here you get the option to select destination company.

Step-4: Process request and review Entries

That’s it for this blog, hope this will help you to use this process in implementation.

Thank You!!! Keep reading sharing