You work as the Finance Director for a company.The company uses Microsoft Dynamics 365 Finance for its accounting system.
The company has several financial dimensions and an organizational hierarchy configured for budgeting.
You are configuring budgets within the organization.You need to configure the correct allocation method to distribute the data in a budget plan to accurately portray the projected amounts.
A budget plan has been configured at the top level in the hierarchy.The budget amounts from the top-level budget need to be spread out across budget plans in lower-level dimensions for a more localized view.
Which of the following allocation methods meets the requirement?
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A. B. C. D.B.
https://docs.microsoft.com/en-us/dynamics365/finance/budgeting/budget-planning-data-allocationIn this scenario, the requirement is to distribute the budget amounts from the top-level budget plan to the lower-level budget plans in a way that accurately portrays the projected amounts. To achieve this, the correct allocation method needs to be configured.
Out of the given options, the most suitable allocation method is "Allocate to dimension". This method enables the user to allocate budget amounts from one dimension to another, based on specified allocation rules. This allocation method is useful when there is a need to distribute budget amounts from a higher level to a lower level in the dimension hierarchy.
For example, let's say the top-level budget plan has a budget amount of $100,000 for the "Sales" dimension. The "Sales" dimension has sub-dimensions such as "Product A", "Product B", and "Product C". To distribute the budget amount of $100,000 to these sub-dimensions, an allocation rule can be set up that distributes the budget amount based on certain criteria, such as the historical sales data of each product.
Using the "Allocate to dimension" allocation method, the budget amounts can be accurately distributed to the lower-level budget plans in the hierarchy, providing a more localized view of the projected amounts.
In summary, the correct allocation method to distribute the budget amounts from a top-level budget plan to lower-level budget plans in a dimension hierarchy is "Allocate to dimension".