Accruals are used in accrual accounting to track revenue that is recognized in the period that it's earned in, not when payment is received, and to track expenses (costs) that are recognized when they occur, not when payment is made.

Allocations are used to distribute amounts across multiple ledger account combinations. They help to ensure that expenses or revenue is charged to the correct object in accounting.

The ledger allocation rules describe the various components of these allocation rules and the allocation methods that can be used for them.

This module explains configuration of allocations and accruals in Dynamics 365 Finance, and how to set them up and create transactions.

In this module, you'll learn how to:

  • Configure and use accruals.
  • Configure and use allocations.