Introducing Variable Allocation with Statistical Accounts: A New Feature in Business Central

Variable allocations in Business Central image

Variable Allocation using Statistical Accounts in Business Central is a new feature, recently added. It is set to revolutionize how businesses manage their financial allocations. For those familiar with Dynamics GP (Great Plains), you’ll find a sense of familiarity, as this feature works similarly to the Variable Allocation functionality in Dynamics GP. This integration is especially thrilling for new Business Central users transitioning from GP, offering a seamless and efficient financial management experience. In this post, we will explore Variable Allocation using Statistical Accounts, guiding you through its setup.

Let’s get started:

In this scenario, Rent expense is posted to a the main account code 60100 without a department dimension since it is not known at the time of posting how it should be allocated.

A statistical account is used to track Headcount across departments and we would like to use this account to automatically allocate the Rent Expense each month.

First we need to setup the statistical account.

Search for Statistical Account and create the account.

Variable Allocations in Business Central

Click Statistical Account Journal to post the values to the account. We split up the amount between the SALES and PROD departments per below.

Variable Allocations in Business Central

Now search for Allocation Accounts.

We created one to allocate Rent based on headcount. The Destination account is 60100 and the Breakdown Account is the Statistical account 90100 for each line. We added a filter so it will allocate based on the balance in account 90100 in the Department Dimension.

Variable Allocations in Business Central

Now go to Manage-Dimensions and select the corresponding dimension for each line.

Variable Allocations in Business Central

Now that we’ve setup the statistical account and the allocation account we are ready to post our allocation.

Open the General Journals window. 

Next, we created a batch name called ALLOCATION

On the first line we selected Account Type as Allocation Account and selected the RENT HEADCOUNT allocation we just setup.

Then on the second line we selected the GL account 60100 without a department as the offset account.

Variable Allocations in Business Central

Click Post/Print-Preview Posting to view the entries that will be made upon posting.

This posting will credit the 60100 Rent Expense without a department to move it out of that account and debit the 60100 Rent Expense with the department allocations based on the headcount account 90100 balance:

Variable Allocations in Business Central

We hope you now feel well-equipped to implement this powerful feature in your financial management strategy. By following the steps outlined above, you’re set to enhance the efficiency and accuracy of your allocation processes, ultimately contributing to better financial control and reporting in your business. If you find yourself needing further guidance or support, please do not hesitate to reach out to us. Our team is dedicated to assisting you in navigating through Business Central’s functionalities, ensuring you can make the most out of this robust financial tool.

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