How to Set Up Allocation Account for Item Lines in Purchase Invoice – Business Central

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Posted on by Padmavathy

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Hi everyone,

In Dynamics 365 Business Central, I’m trying to set up an allocation account for Item lines in a Purchase Invoice.

When I add a line with Type = Item, BC posts the entire cost to the default inventory or expense account from the posting setup.

Instead, I want to allocate the item cost to multiple G/L accounts (e.g. split the value into different expense accounts) automatically during posting.

My questions:

Is there any standard way to define an allocation account for Item lines in Purchase Invoices?

Can this be achieved through dimensions, or do dimensions only help with reporting and not actual G/L postings?

Has anyone created a custom extension to handle allocation accounts for items?

Are there any recommended ISV solutions for managing allocation accounts for item purchases?

Thanks in advance for your help!

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Dynamics 365 Business Central

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Jainam M. Kothari 16,548 Super User 2026 Season 1 on at

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May this can help : https://learn.microsoft.com/en-us/dynamics365/business-central/finance-allocate-revenue-costs

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YUN ZHU 101,202 Super User 2026 Season 1 on at

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Hi, As far as I know, this does not need to be customized, Microsoft has already added this type to the Purchase Line and you can use it directly.

Test Version: W1 26.3 (Platform 26.0.36528.0 + Application 26.3.36158.36575)

However, you mentioned that Type = Item needs to be posted to different accounts, which is currently not possible unless you manually split the line and enter different items.

Even if it is customized, it is very difficult and risky, so I personally do not recommend it.
You can discuss specific needs with local partners.

Thanks.

ZHU

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Sohail Ahmed 11,177 Super User 2026 Season 1 on at

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Same Question: https://community.dynamics.com/forums/thread/details/?threadid=8ff1a85e-3162-f011-bec2-7c1e52151eee

✅ Mark this answer as verified if it helps you.

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