Dynamics-GP provides the capability of performing allocations when posting transactions in the system. Out of the box Dynamics provides two methods of allocating, fixed and variable. For most organizations these two methods of allocations is sufficient. But what if your requirements are more complex?
Think about if you were a government contractor. You need to allocate costs for G&A, Fringe, and Overhead. This can be a very complex allocation process. Or maybe you have your own trickle down allocation process. This could be where you have an allocation within an allocation that then takes the costs allocated by labor hours with the result and finally, allocates it again based on products produced.