Allocations: GP vs. Business Central

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This article describes how to create a journal entry in Business Central in which the amount on one line is allocated to the other lines based on percentages.

Allocations Overview

Allocations are a quick and consistent way to distribute amounts based on percentages or some other factor (e.g., head count, square footage, etc.).

In Dynamics GP, allocations are made using “Allocation” accounts that distribute amounts to posting accounts based on pre-defined percentages. In the process of migrating our clients from Dynamics GP, we had to find a way to re-create their allocations in Business Central.   What we found surprised us.

In Business Central, there are no “Allocation” accounts, and while an entry can be distributed to multiple GL accounts, allocation by percentages is not available in a non-recurring General Journal.  Instead, all allocations in BC are entered in a Recurring General Journal.  Note that although the journal is “recurring” and can be posted more than once, the journal will be posted only when the user chooses to post it.  In other words, the “recurring” journal can be posted just once.

Allocations are available in all types of recurring journals (fixed, variable, reversing, nonreversing, etc.) in Business Central.  In the example below, we will be using a “Fixed” Recurring Journal.

Example Journal Entry Allocation

Each Department is charged a percentage of the $25,000 rent expense as follows:

  1. Create a Recurring General Journal Template

    • In the search box, type “General Journal Templates” and click on the link.

    • Create a new template and mark the template “Recurring.” For this example, we created a Template called ADMIN ALLO:

  2. Select the Recurring General Journal

  3. Enter the first line of the entry (the one containing the amount to be allocated) as below:

Field by field:




Recurring Method

F Fixed

The amount on the journal line will remain after posting.  There is no reversing entry.

Recurring Frequency

Blank - the entry will not recur (but must be allocated, so it is entered in a recurring journal)

Reverse Date Calculation

Blank - the entry will not reverse

Document Date


Date to post

Posting Date


Same as Document Date

Document Type

Not applicable

Document No.


"EXPALLO" & (Current Month)

Account Type

G/L Account

To post to GL only

Account Number


Rent Expense


Allocate Rent Expense

Overwrite the account description



The amount to be allocated from the expense account - entered as a negative (credit) amount

Allocated Amt ($)


The allocated amount is the total from the Allocations window (see below), which is accessed by clicking on the Allocated Amount (highlighted above)

Department Code

In this example, the Department Dimension is specified in the Allocations window

Customergroup Code

In this example, the Customergroup Dimension is not specified

Activity Code



  1. Allocate the amount on the first line. Open the Allocations window by clicking on the Allocated Amount.  On each line, enter the Account Number, choose the Department, and enter the Allocation %, as below:

Typically, each line of the allocation will be distributed to the same Account (e.g., 60100 – Rent Expense, as above) but to different Departments.  The allocation Accounts do not have to be the same, however.  The only requirement is that the percentages add up to 100%.

  1. Close the Allocations window to return to the entry window for posting

 Next post: Allocating an invoice in Business Central

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