D365 & AMCS: Elevating Financials with Ledger Allocation Groups

This blog explores how D365, combined with the Advanced Multi-Company Solution by Avantiico, enables streamlined financial management and reporting. Discover the transformative impact of Ledger Allocation Groups on complex accounting tasks, enhancing efficiency and accuracy in financial operations

Greg Grifith

Greg Grifith

Introduction

AMCS is a financial software tool that automates multiple complex accounting functions, including allocations, to simplify and streamline what can be a time-consuming task.  Avantiico AMCS provides an “Advanced Multi-Company Solution” for D365 Finance & SCM users.  One of its great features is “Ledger Allocation Rule Groups,” which helps you run allocations much better, faster, and in higher volumes.

Allocations are an important part of Management Accounting and enable precise reporting of revenues, costs, and profitability for multiple business segments.

Allocation rule processing has been an important feature for several years with Microsoft Dynamics 365 for Finance and Supply Chain Management (D365 F&SCM).  But, previously, you needed to run them one at a time. Now, with The Advanced Multi-Company Solution (AMCS) by Avantiico and Ledger Allocation Groups, you can run large volumes of allocation rules in a single processing event. You can configure multiple allocation groups and process them in multiple processing events. This enables you to organize rules into sequential units so that rules that need to run first can run before later allocation rules that depend upon the results of earlier allocations.

Combined with the Excel data import template features in the Microsoft Data Management Framework (DMF), it is now possible to configure and process large volumes of allocations to get the precise financial and management accounting measurements that you need.

Use Cases for Allocations

Allocations are applicable to a variety of industries, including manufacturing and franchising. Common use cases for allocations include:

Maximizing Financial Clarity with AMCS Ledger Allocation Groups in D365

Harnessing the power of AMCS Ledger Allocation Groups in D365 F&SCM transforms your financial reporting and management accounting. AMCS enables many benefits that elevate the efficiency and efficacy of financial operations.

Enhanced Efficiency: By consolidating multiple allocation rules into single or multiple processing events, AMCS Ledger Allocation Groups significantly streamline operations. This consolidation minimizes the time and effort needed to process complex sets of allocations.

Increased Accuracy: With the ability to sequence allocation rules, you ensure that each allocation is based on the most accurate and up-to-date information.   Allocations that depend upon the results of other allocations can now be sequenced as needed.

Scalability and Flexibility: Whether your organization is growing or adjusting to market changes, AMCS Ledger Allocation Groups in D365 accommodate your evolving needs. Easily scalable, they handle increased volume without compromising performance, ensuring that your financial processes grow seamlessly alongside your business.

Comprehensive Integration: Leveraging the robust capabilities of D365 F&SCM, the AMCS solution enriches your financial toolset. It provides the precision you need to measure true costs and profitability and enhances your “slice and dice” analysis.

Discover More Benefits

Download The Advanced Multi-Company Solution One-Pager

How To Create Ledger Allocation Groups Using AMCS

Creating Ledger Allocation Groups is an easy process.  You can put all your allocation rules in one group or create multiple groups. You may need only one group.  However, if you need to run your rules in a sequential order, then you may want to create multiple groups.

  • Go to: Advanced Multi Legal Entity Automation [module] > Setup > Allocations > Ledger allocation groups. A form will open.
  • Click on “+ New.” Form will open with the first row ready to hold values for the new row.
  • Enter values for the new row.
  • Optional, press “Save”.
  • Close form.
How To Create Ledger Allocation Groups Using AMCS in D365

Structures of Allocation Rules

The Structures of Allocation Rules generally include most or all of the following elements:

  • Allocation Methods
  • Allocation Source
  • Allocation Destinations
  • Allocation Basis rules
  • Allocation Date Intervals
  • Allocation Offsets
  • Legal Entity identifiers

Creating a Ledger allocation rule

  • Go to: General Ledger [module] > Allocations > Ledger allocation rules.
  • Note: This opens the standard D365FO form for Ledger allocation rules. But AMCS gives it an extra column for assigning a Ledger allocation Group.  See screenshot.
How To Create a Ledger Allocation Rule Using AMCS in D365

Click on “+ New” to create a new rule.  Fill in details on the tabs for:

  • Overview
  • General
  • Offset
  • Source
  • Destination

A complete description of the process for creating allocation rules (and optional basis rules) is beyond the scope of this blog post.  But, Microsoft documentation is available at: https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/ledger-allocation-rules.  In general, start with simple rules and get those working.  Then, try out rules with greater amounts of detail.

How To Assign Ledger Allocation Groups to Allocation Rules

Assigning Ledger Allocation Groups to Allocation Rules is simple.

  • Go to: General Ledger> Allocations> Ledger allocation rules.
    • The standard D365FO form will open.
    • Note: AMCS functionality will add one more column to the standard form for the Ledger allocation group. See screenshot. 
  • Click on the Edit button to enter “Edit mode” and make changes as needed.
  • Close form.
How To Assign Ledger Allocation Groups to Allocation Rule Using AMCS in D365

Process Allocation Group Request

  • Go to: Advanced Multi Legal Entity Automation [module] > Periodic > Allocations > Process allocation group request. Mini-form will open.
How To Process Allocation Group Requests Using AMCS in D365
  • Go to the field for the Ledger allocation group. Make a selection from the drop-down list.
  • Make additional parameter selections as needed.
    • For example, change the value for “Proposal options” to “Proposal only” if you want to review allocation entries before they are posted.
  • When ready, press the OK button.
  • When processing is complete, you can view the results using the menu path: General ledger [module] > Allocations > Allocation journals. You can view both posted and unposted allocation journals.  For multi-company entries, you will want to look at Voucher transactions across multiple legal entities.
  • Note: By default, processing is done “on demand”. But batch processing is also available.
  • Note: This process is nearly identical to the standard process for running allocation rules that is found at the menu path: General ledger > Allocations > Process allocation request. The difference is that the AMCS solution by Avantiico enables you to run a group of allocation rules together rather than only a single allocation rule.  This is a big boost in productivity.  The standard functionality enables you to run one rule only.

Tips and Reminders for Allocations in D365 F&O

Here are essential tips and reminders that not only streamline the allocation process but also maximize the capabilities of D365FO and AMCS. These guidelines will help to ensure you harness the full power of financial allocations for your organization’s needs:

  • Allocations are a great way to move account balances between main accounts and/or main account segments.
  • Allocations are often needed to enhance both Financial and management reporting.
  • D365FO allocations support intercompany allocations.
  • You can allocate from a range of accounts or use a single account as the Source.
  • You can spread allocations to Destination accounts using fixed or variable amounts.
  • Offset amounts can be used to offset amounts in the source accounts or in designated offset accounts.
  • Main accounts and all financial dimensions are fully available for defining source, destination, and offset accounts.
  • Allocations can be run for Date intervals that include fiscal period-to-date and year-to-date.
  • When creating ledger allocation rules and allocation basis rules, import templates are available and enable users to configure large volumes of rule data quickly and accurately.
  • There’s a wide spectrum of financial and management accounting needs for reports that can be best fulfilled using a helpful set of allocations.
  • Some companies create 100’s or even 1000’s of Ledger allocation rules to meet their reporting needs. This type of volume is only possible using a tool like what Avantiico’s AMCS and Ledger allocation groups provide.

Closing

Whatever your allocation needs grow beyond one allocation rule, Avantico’s ledger allocation groups are sure to help.  They enable timely and efficient processing of large volumes of allocations.  It should be noted that Ledger allocation groups are just one feature in The Advanced Multi-Company Solution (AMCS) by Avantiico.

Other great features include:

  • Expedited Multi-Company Financial Journals
  • Multi-Company Inquiries and Reporting
  • Rapid Creation of New Legal Entities
  • Expedited Multi-Company Integration
  • Rapid Data Migration for Dynamics 365 FO
  • Strategic Budget Planning

Don’t miss the opportunity to transform your accounting team’s performance. Explore The Advanced Multi-Company Solution (AMCS) by Avantiico and discover how it can elevate your organization’s financial capabilities. Contact us today to learn more and start your journey toward efficient and effective financial management.

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