Allocation Rules vs. Ledger Allocation Rules in AX 2012 - Part 2

Allocation Rules in AX 2012 ... Allocation rules are defined on the set up of individual Main accounts, and result in the immediate allocation of ... Blog News,tips,andresourcesfromourexpertstoyou.You’llfindeverythingyou’relookingforrighthere. Home>Blog>AllocationRulesvs.LedgerAllocationRulesinAX2012–Part2 AllocationRulesvs.LedgerAllocationRulesinAX2012–Part2 ByKristyLoeks |December22,2014 InmyfirstpostdiscussingAllocationRulesvs.LedgerAllocationRulesinAX2012–Part1,Iwentoversettingupallocationrules,resourcesanddestinationsaswellasprovidingsomepracticalinformationonthesubject.Belowyou’llfindarefresheronthehighlevelinformationcomparingthetwofeatures,andthenI’llgetintosettingupledgerallocationrules. AllocationRulesinAX2012 AllocationrulesaredefinedonthesetupofindividualMainaccounts,andresultintheimmediateallocationoftransactionamountsduringthepostingprocess.Allocationrulesaredefinedonlyintermsoffixedpercentages,andaredefinedonacompany-by-companybasis.ItisnotpossibletoviewthecalculatedallocationpriortopostingentriestoaccountswithassociatedAllocationrules. LedgerAllocationRulesinAX2012 Ledgerallocationrulesareusedtoautomaticallycalculateandgeneratejournalentriesfortheallocationofaccountoraccount/dimensioncombinationbalances.Calculationofallocationscanbebasedonfixedpercentages,fixedweights,equaldistribution,orbasisasdefinedintheassociatedLedgerallocationbasis.Ledgerallocationrulesareuser-triggered,andcanbeprocessedatanytime.The‘Processallocationrequest’processallowsausertoprocesstheLedgerallocationruleandpreviewtheresultingjournalentrybeforeeitherpostingordeletingthecalculatedallocation.AseparateLedgerallocationrulemustbesetupandprocessedforeachdefinedsource.Thereisn’taprocesstoallocatemultiplesourcesatonce. SETTINGUPLEDGERALLOCATIONRULES SettingupLedgerAllocationBases Ledgerallocationbasesareusedtocalculatedistributionsproportionately,basedonauser-definedformula. Apracticalexample:CompanyABCallocatesgeneralexpensestodepartmentsbasedoneachdepartment’slaborcostsincomparisontototallaborcosts.IfCompanyABCincurs$100,000intotallaborcosts,andthemarketingdepartmentaccountsfor$7,500ofthosecosts,themarketingdepartmentwillbeallocated7.5%ofallothergeneralexpenses(7,500/100,000).AXusesLedgerallocationbasestodefinetheseformulas. DynamicsAXsupportsanunlimitednumberofLedgerallocationbases,meaningdifferentLedgerallocationrulescanbecalculatedusingdifferentbases.Forexample,someallocationscouldbebasedupontotallaborcostswhileotherallocationscouldbebasedupontotalsales.LedgerallocationbasesandLedgerallocationruleshaveaone-to-manyrelationship,meaningasingleLedgerallocationbasiscanbeusedbymultipleLedgerallocationrules. EachLedgerallocationbasiscanbebaseduponadifferenttimeperiod.Forexample,acompanymaychoosetoallocategeneralexpenseseachmonthbaseduponthatmonth’stotalsales,butallocateannualexpensessuchasincometaxesbaseduponyearlysales. TomaintainLedgerallocationbases,navigatetoGeneralledger>Setup>Posting>LedgerallocationbasistoopentheLedgerallocationbasisform,whichcontainsalistofallexistingLedgerallocationbases. ToaddanewLedgerallocationbasis,clicktheNewbutton.TheBasisIDmayautocomplete,dependingonthesettingsoftheNumbersequenceassignedtoBasisrulesintheGeneralledgerparameters.Addadescription,effectivedate,expirationdate(ifapplicable),selectthecheckboxforActive,andselectadateinterval.Pleasenote,thisdateintervalisusedonlytocalculatethebasisandproportionateshares.Youcouldchooserolling12monthdateintervalheretobasetheallocationshareon12monthsactivity,andlaterchooseacurrentmonthdateintervalintheLedgerallocationrulesetup–thiswouldresultinallocationofthecurrentmonth’sexpensesbasedupontotalsoverthelast12months. Toreviewtheaccount/dimensioncombinationsthatmakeupthetotalagainstwhichproportionatesharesarecalculated,highlighttheappropriateBasisIDandclicktheBasisbuttontoopentheLedgerallocationbasissourceform. Intheexampleabove,BAS-000002,AXRevenueiscalculatedasthetotalofallaccountbalancesfrom400000to429999andfrom440000to499999,wheretheProductLineisequalto10. SettingupLedgerAllocationRules TomaintainLedgerallocationrules,navigatetoGeneralledger>Setup>Posting>LedgerallocationrulestoopentheLedgerallocationruleform,whichopenstotheOverviewtab,containingalistofallexistingLedgerallocationrules.   ToaddanewLedgerallocationrule,clicktheNewbutton.TheRuleIDmayautocomplete,dependingonthesettingsoftheNumbersequenceassignedtoAllocationrulesintheGeneralledgerparameters.Addadescription,effectivedate,expirationdateandselecttheActivecheckbox.TheAllocationmethod,foundontheGeneralpage,mustbeselectedtoenabletheSourceandDestinationbuttons.ClickontheGeneraltabtomovetotheGeneralpage. Rule,Description,Effectivedate,ExpirationdateandtheActivecheckboxwillautocompletewiththevaluesenteredontheOverviewpage.Thesevaluescanbeeditedoneitherpage. SelecttheAllocationmethodfromthedropdownmenu.SelecttheDatasourcefromthedropdownmenu.Therearetwochoiceshere–Ledgerwillallocateamountsfromaccountbalances,Fixedamountwillallocatethesameamounteachtimetheallocationruleisprocessed.Forexample,acompanycouldchoosetoallocate$100,000toselectdepartmentseachmonth,regardlessofthesourceaccountbalances.SelecttheDateintervalcodefromthedropdown.Thisisthedaterangeoftheamountstobeallocated,notthedaterangeoftheamountstobeusedtodeterminebasis.SelecttheJournalnamefromthedropdown. ClicktheOffsettabtospecifytheOffsetaccount.ThedefaultsettingisSource,meaningentrieswillbepostedtoreducethebalancesoftheSourceaccounts.IfyouchooseUserDefined,theSourceaccountamountswillnotbereduced–instead,theSourceaccountsamountswillstaythesame,andamountswillposttotheoffsetaccountratherthanreducingtheSourceaccountbalance(s). ClicktheSourcebuttontodefinetheaccountsfromwhichamountswillbeallocatedtodestinations.   Toaddtotheexistingsources,clicktheNewbutton.IntheFieldsettingdropdown,selecttobasethenewfilteroneithertheMainaccountorafinancialdimension.IfFinancialdimensionisselected,selecttheappropriatefinancialdimensionintheNamefield.IntheSourcecriteriafield,selecttheaccount(s)orfinancialdimensionvalue(s)toincludeforallocation.Intheaboveexample,theaccountcombination521100-hasbeenselectedforallocation.Pleasenote,toallocateonlytheamountsinthemainaccountthatdonothaveavalueforaspecificfinancialdimension,youmustaddalinewiththatfinancialdimensionspecifiedtohaveablankvalue,asabove.IfyouspecifyonlythemainaccountonthesourcewithoutaFinancialdimensionfilter,allaccountcombinationsforthatmainaccountwillgetallocated. ClicktheDestinationbuttontodefinewhichbasisruleswillcomprisethetotalbasisandtheaccountstowhichtheallocatedamountswillbeposted.   Totalbasistobeusedforallocationiscalculatedasthesumofthebasesassignedtoalldestinations.Inthewindowabove,totalbasisisthesumofBasisIDs-000002and-000003.Thepercentagewhichwillbeallocatedtoaccountcombination521100-10,aspicturedabove,isthecalculatedasBAS-000002/(BAS-000002+BAS-000003).Ifonlyonedestinationisdesignatedinthiswindow,thewholesourceamountwillbeallocatedtotheaccountspecifiedonthedestination. ReviewingLedgerAllocationRules Ledgerallocationrulescanbereviewedfromwithinthemaintenanceforms,orbyprintingtheAllocationrulesdefinitionreport.Toprintthisreport,navigatetoGeneralledger>Reports>Basedata>Various>Allocationrulesdefinition. ProcessingLedgerAllocationRules Togenerategeneralledgerentriestoallocateaccountbalancesfromsourcestodestinations,LedgerallocationrulesmustbeprocessedbynavigatingtoGeneralledger>Periodic>Processallocationrequest.   SelectfromthedropdowntheAllocationruletoprocess.SelecttheAsofdate,whichisthedateatwhichthebalancetobeallocatediscalculated,andisthedateusedinthedateintervalcalculations.SelecttheGLpostingdate,whichisthedatetoposttheallocationentryinthegeneralledger.FromtheZerosourcedropdown,selectwhethertoprocessorstoptherequestifthesourceamountsarezero. Fromtheproposaloptionsdropdown,selectwhethertoprocessasaProposalonly,whichcanbereviewedandtheneitherpostedordeleted,ortoprocessasPostonly,resultinginimmediatepostingtothegeneralledgerwithnoreview. IntheReleasedatefield,specify,ifapplicable,thedateatwhichthetransactioncanbeposted.Forexample,ifthisentryistobepostedtothegeneralledgerdated5/31/14,andtheallocationrequestistobeprocessed6/10/14butshouldnotbeposteduntil6/15/14,thenenter6/15/14. EnterReasoncodesandcommentsifapplicable. ReviewingAllocationEntries Toreviewandeitherpostordeletetheresultingentry,navigatetoGeneralledger>Journals>Allocation.SelecttheappropriateAllocationjournal,andclicktheLinesbuttontoreviewthejournalentrydetail.   PracticalInformation Tokeepthingsuser-friendly,whensettingupLedgerallocationrules,Itrytobespecificinthedescriptionregardingthesource,asthatistheonlyfieldintheProcessallocationrequestwindowwhichprovidesinsightintotheaccountbalancestobeallocated. IalsoliketopersonalizethegridontheLedgerallocationruleform(Overviewtab).Iincludeadditionalfieldsinthegrid,providingaone-formviewofallimportantinformationforallLedgerallocationrules.BelowisanexamplewhereI’veincludetheAllocationmethod,Dateintervalcode,Journalname,andDatelastrun.Forinstructionsonpersonalizinggrids,pleaseseetheblogpost‘ReconcilingPayrollEarningsinDynamicsAX2012R2’.   Processingallocationrequestsgeneratejournalentries.Accounthistoryforsourceaccountsremainsintact,withtheadditionoftheallocationgeneralledgerentry,reducingtheaccountbalance. Allocationrequestscanbeprocessedasaproposalonlyandthendeletedanunlimitednumberoftimes.Allocationrulesallocatethebalanceatthetimetherequestisprocessed.Ifatransactionispostedtoasourceaccountforaperiodthathasalreadybeenallocated,theallocationrulemustbeprocessedagain.Subsequentallocationrequestswillallocateonlythebalanceatthetimeoftherequest,whichwillbemadeupofonlynewtransactionssincethelasttimetheallocationrulewasprocessed. IfyouhaveanyquestionsregardingallocationfunctionalitywithinMicrosoftDynamicsAX2012,contactStoneridgeSoftwaretoday. RelatedPosts AllocationRulesvs.LedgerAllocationRulesinAX2012-Part1 DynamicsAX2012BatchTransferRules TheBeautyofDynamicsAX2012AdvancedRulesFromaFormerHater StarttheConversation Talktoustodayaboutmodernsolutionsforyourbusiness. ContactUs Subscribe Signuptoreceiveweeklyupdatesonthelatestblogposts. SearchSearch Categories PopularPosts Events LearnmoreataStoneridgeEvent.Viewourupcomingdatesbelow. 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