AX for ERP

Automatic allocations from GL in D365

Most of you are aware of Allocation rules in AX 2012/ Dynamics 365. Instead of an allocation journal at the month/ period end, it can be automated in the system to allocate a specific percentage across GL accounts and Dimension segments. An allocation rule can be setup and attached right in the Main account setup itself.

For example, All the audit related expenses are debited to ‘Audit expense’ in the normal accounting process and it needs a re-allocation to ‘Audit-Tax’ and ‘Audit-Financial’ based on some criteria. Instead of manual re-allocation or running allocation at month-end it can be setup to allocate simultaneously.

Add Legal entity overrides in the Main account form for the Company in discussion

Flag Allocation check box on Legal entity overrides

Once flagged Allocation terms button on the ribbon above it will get enabled

Click on Allocation terms to create allocation rule:

You will see

-        Percentage of allocation

-        Source criteria setup and

-        Destination criteria setup

To continue with the example, allocate to Audit expense to 70% to Audit-Financial and 30% to Audit-Tax.

70% to Audit-Financial

30% to Audit-Tax

Close the form to complete setup.

Post a transaction to see the postings

Post an amount of $1000 to Audit expense

Verify the voucher after posting. It posts to the above account and then allocates within the same voucher. See the allocations 70% to Audit-Financial and 30% to Audit-Tax