Same Expense Category/Multiple Main Accounts

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Posted on by raoraheel

Hi All,

I have a scenario where I'm trying to setup expense categories in D365 Finance where there will be two different main accounts for each category depending on two main areas of the business.

Example

Fuel - Area1 - MainAccount 1111

Fuel - Area2 - MainAccount 1112

Meal - Area1 - MainAccount 1122

Meal - Area2 - MainAccount 1123

We already have financial dimensions in use which I'm suggesting however finance in addition to that requires to actually post in separate accounts. Creating two categories for same type of expense will be confusing for end users and will increase chances of errors where they'll select incorrect category from the area of business which they do not belong to.

Has anyone else run into such a scenario? If yes, how did you solve it?

Any other suggestions with I can keep it simple for the user where all users will see the same list of categories and we somehow based on financial dimension post them to their respective accounts.

I'm keeping the customization option last and trying to see if we can solve this functionally first.

Let me know please.

Thanks

Raheel

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Darione78 User Group Leader on at

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Hi Raheel, what is the difference between the accounts, and what is the core requirement behind asking for multiple GL accounts? Is it a reporting problem, for example? I think that your requirement is not easy to achieve automatically, other than creating one category per account and maybe controlling the posting in the accounting structure e.g.:

Fuel category 1 - Post to GL account 1111 - Allow only department "Area 1" to post to GL Account 1111

Fuel category 2 - Post to GL account 1112 - Allow only department "Area 2" to post to GL Account 1112

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André Arnaud de Cal... 301,035 Super User 2025 Season 2 on at

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Hi Raheel,

You did post the same question on another forum. Here is my same reply:

Can you explain how the Area1 and Area2 are used? Are these dimension values or where are they specified? It seems like the Area is the differentiator, but you did not explain anything related to this attribute.

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Ludwig Reinhard Microsoft Employee on at

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Hi Raheel,

If you need this 'fuel - area' separation for different ledger accounts then there must be a relation between the areas and your ledger accounts.

That's at least my understanding.

To be more specific, to me it looks as if the area information is included in the main account.

Is that right?

If so, why is this done and can't you use a separate findim for the area?

Best regards,

Ludwig

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raoraheel 85 on at

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Hi Andre, I should have been more clearer. We are using finDims for distinguishing both areas from each other and also have separate accounts for each categories.

After posting this, I started looking into if we can use allocation rule for this purpose and seems like that is something which will help. So lets say, I'll for now post everything for Fuel expense to MainAccount 1111 for Area1 and then create an allocation rule that picks up any posting done to MainAccount 1111 but for Area2 to create an allocation journal offsetting both accounts to move transactions to MainAccount 1112. Does that makes sense?

Regards,

Raheel

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saurabh bharti 15,039 Moderator on at

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Hi Raheel,

But how you will be identifying the what amount to be allocated from 1111-Area-1 combination to 1112-Area 2 ?

May be if use of different account is necessity then here are following things you may try:

1. Post everything in 1111 but use fin dim area-1 and area-2 to segregate data and then use allocation rule to transfer 1111- Area-2 combination to 1112-Area 2

2. You might define accounting structure with segment order "Area-Main Account" and then give eligibility that with Area 2 only 1112 will be used and with Area-1 1111 will be used

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Ludwig Reinhard Microsoft Employee on at

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Hi Raheel,

I don't think that this is a good and common practice to use an allocation rule as a workaround for something that usually does not need an allocation rule.

I would suggest that you reconsider the setup of your accounts, areas and other findims before making use of this workaround.

Best regards,

Ludwig

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