Advance your recurring journal process through allocation rules

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As the world getting automated, AI enabled and using machine learning capabilities for complex business operations to make it easier and efficient. We often ignore to explore and advance some of the simple business operation by using existing technology.

In a finance process improvements initiative, we usually talk about automating the O2C, P2P processes but there are operations more like creating and posting same journal entries on daily, weekly and monthly basis which has become monotonous task for a finance persona.

In my previous blog on recurring journals, i discussed about automating the process using Power platform(MS flow). In this blog, I would like to discuss how we can use existing allocation rules functionality to automate the process of creating recurring journals more efficiently than using periodic journals, voucher templates in D365 finance application.

Configure ledger allocation rules (Fixed weight):

Configure ledger allocation rule with fixed value(source) and fixed weight method(destination) to create recurring journals, please follow the steps below

  1. General ledger > Allocations > Ledger allocation rules
  2. On the overview tab,
    • On the Rule field, enter the unique name for recurring journal
    • Enter the Effective date (Start date) and Expiration date (End date).
    • Mark the Active check box

RJALL_01

  1. On the general tab,
    • Select the allocation method: Fixed weight
    • Select the journal name (This should be pre created with journal type ‘Allocation’ under General ledger > Setup > Journals > Journal names)
    • Select the Data source: Fixed value
    • Enter the value for creating recurring journal for source account

RJALL_02

  1. On the offset tab,
    • Select the offset account which needs to be credited for your recurring entry
    • Select the financial dimensions, if applicable

RJALL_03

  1. On the action pane,
    • Click on Destination and click new
    • Enter the recurring value in the Fixed weight field
    • Select the ledger and financial dimensions which needs to be debited for your recurring entry

RJALL_04

Process allocation request:

After the ledger allocation rule is configured, process allocation request functionality can be executed to create the journals automatically.

  1. General ledger > Allocations > Process allocation requests
  2. On the dialog,
    • Select the ledger allocation rule (configured above).
    • Enter the GL posting date
    • Enter the As of date (Same as GL posting date)
    • Select the Proposal options,
      • Proposal only: The journal will be created and is available for review and posting.
      • Post only: The journal will be created and posted.

RJALL_05

Review allocation journal:

Once you process allocation request, system will automatically create the allocation(recurring) journal based on the ledger allocation rule. Since I used the Proposal only option the journal will be available for review and post

  1. General ledger > Allocations > Allocation journals
  2. Select the journal created and click on lines
  3. Review the journal and post

RJALL_06

Hope this helps.

Best regards,
Namith Hosmane

Disclaimer:
This is a personal blog. Any views or opinions represented in this blog are personal and belong solely to the blog owner and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated. All content provided on this blog is for informational purposes only. This blog makes no representations as to the accuracy or completeness of any information on this site.

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