In my previous article, I showed you how to configure the basics of cost accounting in D365 F&O. It is time to move to the next steps and apply some allocation rules.

I would like to apply allocations based on statistical dimensions. Some costs have been accumulated on non allocated business units and need to be allocated to all operating business units based on the volume of oxygen produced per business unit.

**Statistical dimensions**

Navigate to **Cost accounting > Dimensions > Statistical dimensions **

Select *Imported dimension members* in the **Data provider** field as the statistical values are not inherited from D365 F&O but from an external source.

Click **Manage dimension members **

In our case we will use ‘Volume stat data’ and the unit of measure is m3

We need to import the statistical data and use the data management framework.

The Excel spreadsheet looks like follow:

💬 : the MAGNITUDE column is the volume (m3) of oxygen produced per business unit (DIMENSIONMEMBERNAMES).

Go to the data management workspace, then create an import project.

Add the data entity ** Imported statistical measures**, upload the excel spreadsheet and click

**Import.**

Navigate to **Cost accounting > Cost accounting ledger**, then select **Actual versions > Manage > Statistical measures**.

Click **New **

Select the statistical dimension member and the data provider

Click **Configure data provider **

The **Import source identifier** field is associated with the column SOURCEIDENTIFIER in the imported Excel spreadsheet.

Close the dialog and the form.

Select **Actual versions**, then **Source data processing** and **Statistical measures** in the** Process data sources **group.

A dialog form pops up

Import the statistical data for a specific period

Click **All processing journals** and you can view statistical entry transfer journals that contain statistical data imported into the cost accounting module.

**Cost allocation policies**

Let’s configure an allocation policy based on statistical values.

Navigate to **Cost accounting > Policies > Cost allocation policies **

Select the Cost object dimension hierarchy, the cost element dimension, and the statistical dimensions.

I would like to allocate the costs accumulated on the unallocated business units and that’s why I selected the node ‘*Unallocated*’ in the cost object dimension hierarchy. The allocation base is those statistical data I imported earlier.

Now we need to link that rule to a cost control unit and a cost accounting ledger.

Click **Policy assignments for cost unit **

The cost control unit is the business unit dimension for the Cost accounting ledger V2_Ledger.

Let’s run that allocation rule

Go to **Cost accounting > Cost accounting ledger**, then in the **Period calculations** tab, select **Overhead calculation **

Select the period for which you want to run the allocation rule

Click **OK**

You can see the results in a calculation journal of the type cost allocation journal

As a matter of fact, you can also apply other types of allocations.

In my next article, I will show how to split costs into a fixed amount and a variable amount and how to apply separate allocation rules for each amount type (Fixed/Variable).