Allocation Question

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Hello Again!

I have our AP team asking if allocation rules can be setup to distribute cost, via non-po invoice received by vendor, across multiple entities? For example, say we have 3 distinct AP companies (AX entities), and an invoice comes in for $100 for company 1... could a rule be setup by vendor, not main account or dimensions, to say allocate 60% of the $100 expense to company 1 and 20% to companies 2 and 3, respectively?

From what I'm reading it appears that AX only lets you set allocation rules up by main account or dimensionally, but I wanted to get an expert opinion. If not out of the box, is it possible another way, possibly via a custom?

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Ludwig Reinhard Microsoft Employee on at

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Hi KyleE,

You are right. The allocation rules work only at the main account / financial dimension level unless you customize them.

Yet, when it comes to PO's / PO-lines, such an adjustment might quickly become tricky.

A possible workaround are the Excel-templates that can be used for filling GL journals.

Can't you prepare the allocations - that you want to have posted in the different companies - in Excel and upload + post them. When doing that make sure that you do not need invoice documents as a backup for making those postings...

Hope this helps.

Best regards,

Ludwig

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Understood. follow up question...staying confined to main account and dimension rule sets, could I specify that anytime a expense is registered against a particular account + dimension combination, that I would then want to allocate percentages to another main account(s) and dimension combination(s)? - one source, multiple targets. I guess I'm getting feedback that it's one or the other - main account or dimension and not both, is this true?

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Ludwig Reinhard Microsoft Employee on at

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Hi,

It's both You can even allocate the sum recorded on a group of accounts and financial dimensions to many other account-financial dimension combinations that you can freely specify.

Tipp: Just give it a try yourself. It doesn't take long to setup those allocations in a demo environment. When doing that you can quickly identify the advantages and disadvantages of the GL allocation feature.

Best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Hi KyleE,

Is there anything left open/ not answered here?

Best regards,

Ludwig

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meanjomer08 100 on at

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Hi Kyle E,

Allocation rules under GL > Setup > Posting > Ledger Allocation Rule are designed to allocate balances of Main account or combination of main account and financial dimension only. In fact, this functionality is only applied before you close the books.

If the 3 entities are within AX, you can however create intercompany posting rules to post the share in expenses accordingly at the books of each entity .

The allocation will be manually computed though.

You can also do this via general journal or AP Invoice journal only. Hence PO invoicing is not covered.

You may do customization for the allocation rule if it is based on fixed percentge, fixed weight or fixed points.

Hope this helps :)

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