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Chapter 4: General Ledger Daily Procedures

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CHAPTER 4: GENERAL LEDGER DAILYPROCEDURES

ObjectivesThe objectives are:

• Create General Ledger Journals.• Enter General Ledger Transactions.• Post multiple journals.• Create Approval Journals.• Demonstrate data needed to create an Approval Journal.• Create a Voucher Template.

• Create and Retrieve Periodic Journals.• General Ledger Transaction Reversal.• Create General Ledger Reversing Entries.• Inquire and Report on Daily Journal Transactions.

Introduction

Every manual posting entered into Microsoft Dynamics ® AX is entered through a journal. A journal is a type of worksheet where entries do not post immediately.You can review, change, and verify completed journals until they are ready for

posting.

There are many ways to set up the journals to control different kinds of entriesand to apply an approval system so that special journals post only after they have

been approved. You also can choose whether to keep the used journals forhistorical purposes.

This course explains journal management and journal transactions in the Generalledger module.

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Financials I in Microsoft Dynamics ® AX 2012

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General Ledger Journals

Users can post transactions to the following accounts by using a general journal:

• General ledger

• Bank• Customer• Vendor• Projects• Fixed assets

In a general journal, users enter the following relevant information for thetransaction:

• Posting date

• Amount• Accounts to post to

The information that users enter in a general journal is temporary and can bechanged as long as it remains unposted within the journal.

Procedure: Create a General Ledger Journal

Use the General journal form to create and view journals within the GeneralLedger module in Microsoft Dynamics AX. The Show list determines whetheronly open, posted, or all transactions display in the form.

Perform the following steps to create a general journal entry.

1. Click General ledger , select Journals , and then click GeneralJournal .

2. Click the New button to create a new journal in the General journal form.

3. Enter the name of the journal in the Name list, or select the namefrom the journal name list for the general journal type. The journalnumber is inserted automatically from the voucher series set up inthe Journal names form. The description from the Journal names form is inserted automatically, but you can overwrite it. TheJournal batch number is created automatically from the numbersequence set up in the General ledger parameters form, and thedescription comes from the Journal names form.

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NOTE : The Posted check box is selected automatically after the journal has been posted. The General journal form filters journals by the Show field. You can select to display only open , all , or posted journals.

FIGURE 4.1 THE JOURNAL FORM

Procedure: Create a General Ledger Journal - Lines

Perform the following steps to create the General Journal Lines:

1. Use the tabs, for example the General or Financial Dimension tab,to change or add to any of the field information that is enteredautomatically from the Journal names form.

2. Click Lines on the menu bar to create a transaction.3. To inquire about transactions within a journal at any time, highlight

the journal and click the Lines button.

4. To print the journal and other reports, click the Print button.5. To save the lines, click File, then click Save at the end of each line

or use the down arrow to enter a new transaction line.6. Click Post in the General journal form or in the General journal

lines form to post transactions to the General Ledger immediatelyafter you create transactions. When you post the journal lines ineither form, the results are the same. A transaction does not affectaccount balances until you post it.

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Enter General Ledger Transactions

Journal entries in Microsoft Dynamics AX are the same as any other type ofaccounting entry. A ledger account is debited or credited, and then an offsetaccount is designated.

You must have the following information to create a journal entry:

• Accounting date• Ledger account• Debit or credit amount• Offset account (can be entered on the same line or multiple lines)

Use the Journal lines form to enter transactions within a journal. Click the Lines button on the General Journal to open the Journal lines form.

Enter General Ledger Transactions - Overview TabThe Overview tab is used to create entries. It contains the basic informationneeded to make a journal entry. Use this tab to enter transactions in the GeneralLedger.

Create a journal and view open, posted, or all journals according to the selectionin the Show list at the top of the form.

NOTE : Set up default number sequences using the General ledger parameters form. To do this, click General Ledger , click Setup , then select General ledger parameters. If you set the number sequence to Continuous and you allow no user

changes, the voucher field is skipped automatically. Refer to the Microsoft Dynamics AX Introduction manual for more information about number sequences.

Procedure: Enter General Ledger Transactions - AccountTypes

Click the Overview or Setup tab to determine which type of transaction to create by using the Account type field. Follow these suggestions to select the accounttype.

1. Select one of the following account types to use for the general journal transaction in the Account type field:a. Ledger - use Ledger for transactions in a ledger account.

b. Customer - use Customer for transactions to customers.c. Vendor - use Vendor for posting to a vendor account. For

example, when you record a vendor payment and specify Vendoras the Account type, posting occurs in the specified vendoraccount. At the same time, posting occurs automatically in thevendor summary account in the General Ledger.

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d. Project - use Project to post to a specific project number.e. Fixed assets - use Fixed assets to post to a specific asset

number.f. Bank - Use Bank if a bank account transaction is involved.

2. Use the Offset account drop-down list to select an offset account touse with the transaction. It is also possible to enter multiple lines toget a balanced voucher.

Procedure: Enter General Ledger Transactions - Accounts

After you enter the account type, use the following steps to enter the line itemdetail by selecting Lines on the menu bar.

1. Select an account number for the current account type in theAccount field.

2. Use the Offset account drop-down list to select an offset account touse with the transaction.

3. Enter the debit amount in the given currency in the Debit field.4. Enter the credit amount in the given currency in the Credit field.

NOTE : Set up the default offset account for an account in the Journal names form. By creating a default offset account, this field is populated automaticallywithout specifying the account every time. Also, set up default accounts and

posting account restrictions in the Journal names form by clicking the JournalControl button.

Procedure: Enter General Ledger Transactions - PostJournal

After you enter General Ledger transactions into the journal and you verify thatthe information is correct, you now can post the journal. Perform the followingsteps to post the journal:

1. Click Post, then select Post the general journal to post withoutfirst validating. If the journal contains erroneous entries, you willreceive an error message and the journal will not post. ClickValidate to verify that there are no errors before you click Post .

2. Click Post, then Post and transfer to transfer the line that contains

errors into the next journal of the same type. All of the correct lineswill then post.

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Procedure: Enter General Ledger Transactions - ViewResults

You can view the results of posting the journal by printing the journal. Performthe following steps to view the results:

1. Click Print and select Journal or click on General Ledger, thenclick Reports , then click Journals , then click Print Journal andselect the journal number you just created. The Print journal form

prints a list of transactions for each journal.2. Select the Specifications check box to print additional information,

such as invoice number and approval information.3. Select the Totals check box to show total amounts in currencies for

ledger accounts for every journal.4. Select the Accrual schemes check box to identify accrued

transactions.5. Click OK to print the journal report.

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Lab 4.1 - Daily Transactions

This lab will demonstrate creating and posting transactions in a General journal.

Scenario

Ken is the Controller for Contoso. On June 30, 2011 Contoso paid 6,000.00 USDfor audio-visual equipment.

Use the information in the following table to enter the transaction.

Option

Name of Journal GenJrn

Journal Number Accept the System Default

Description AV Equipment

Account

Description Invoice

Debit 6000

Offset Account 110180

Challenge Yourself!

1. Help Ken record the activity in the prepaid rent expense account inMicrosoft Dynamics AX. Enter a journal for the prepaid rentexpense.

2. After you enter the transaction information, post the journal.

Need a Little Help?

1. Select the journal name.2. Select the desired transaction description.3. Click the Post button on the Journal voucher form.

NOTE : Normal accounting procedures would not disburse a large payment froma Petty Cash account. This account (number 110180) has been chosen to simplifythis lab procedure.

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Step by Step

Create the Journal:

1. On the Navigation Pane, click General ledger , click Journals ,click General journal .

2. Click the New button to add a line.3. In the Name field, click the arrow to select GenJrn .4. In the Journal batch number field, accept the system default.5. In the Description field, enter AV Equipment.

Create the Journal Lines:

1. Click the Lines button.2. In the Date field, enter 06/30/2011.3. In the Account type field, select Vendor.

4. In the Account field, enter 1001.5. In the Description field, enter payment.6. In the Debit field, enter 6000.7. In the Offset account type field select Bank8. In the Offset account field, select USA OPER.9. Click the Payment tab and in the Method of payment field select

USA_EL.10. In the Bank transaction type field select 02.

Post the Journal (Only if Fiscal Year has been set up):

1. If a fiscal year and period has been set up for this fiscal period youmay click Post to post this transaction. If a fiscal period has not

been set up you will receive a message that you cannot post untilsetting up a fiscal period for this date.

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Lab 4.2 - Daily Transactions with Balance Control

This lab will demonstrate the use of the Balance control feature.

Scenario

Ken is the controller for Contoso. On June 25, 2011 he received an invoice fromvendor for 800.00 USD. A journal is to be created, using the GenJrn journal, forthe expense, debiting the Bank Operating account and entering a second line,crediting 131100. Help Ken validate the journal and review the balance controlaccounts online.

Challenge Yourself!

1. Enter a journal for office expenses, using two lines of entry insteadof an offset account.

2. Validate the journal.3. Review the balance control accounts online.

Need a Little Help?

1. Validate the journal in the Journal voucher form by clicking theValidate button.

2. Review the balance control accounts from the Journal voucher form by using the Balance control option available from the Inquiries button.

Step by Step

Create the General Journal:

1. On the Navigation Pane, click General ledger, click Journals , andthen click General journal .

2. Click the New button to add a line.3. In the Name field, click the arrow to select GenJrn.4. In the Journal batch number field, accept the system default.5. In the Description field, enter Electricity.6. Click the Lines button.7. In the Date field, enter 06/25/2011.8. In the Account Type field, click the arrow to select account Bank.9. In the Description field, select invoice .10. In the Debit field, enter 800.11. Press the down arrow key to add a line.12. In the Date field, enter 06/25/2011. Note that this field may already

be filled in.13. In the Account Type field, click the arrow to select account Ledger.

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14. In the Account field, click the arrow to select account 131100.15. In the Description field, enter invoice .16. In the Credit field, enter 800.

Validate the General Journal:

1. Click the Validate button, and then click the Validate . An Infolog form displays, which provides information for issues in the journalthat may affect posting.

2. Close the Infolog form.

Review the Balance Control:

1. Click the Inquiries button.2. Click the Balance control option. Note the display for the accounts.3. Close the Balance control form.4. Close the Journal voucher form.5. Close the General Journal form.

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Posting Multiple Journals

You can use the Post journals menu option to post multiple journals with large processes in a batch. You can also post multiple journals that you have created inthe following modules by selecting the Post journals menu option:

• General ledger• Accounts receivable• Accounts payable• Project

You can post journals immediately or set them up as a job for batch processing.

Scenario

Contoso uses batch processing at the end of its business day to process large jobs.

During the day, Susan, the order processor, opens and creates multiple journals.The journals are not posted in case Susan must make corrections or add moreitems to the journals during the day. At the end of the day, Susan runs a journal

batch job to post all the open journals at the same time.

Procedure: Post Multiple Journals - Select Journals

Follow these steps to post multiple journals:

1. Open the Post journals form by clicking General Ledger , clickPeriodic , click Journals , and then click Post Journals .

2. Click the Select button to open journals for multiple posting. The

range is already set up to include open journals. Click OK to returnto the Post journals form.3. Manually add or delete journals from the resulting list of journals to

be posted. To add a journal, press CTRL+N to create a line, andthen select the appropriate journal type and number.

4. When necessary, press ALT+F9 to delete a journal.5. Select the Transfer errors check box on the individual journal

lines so that vouchers with errors do not delay the posting ofvouchers without errors. When this check box is selected, the

posting process posts vouchers without errors and transfersvouchers with errors to a new journal.

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NOTE : If using batch job processing, you may click the Late selection check boxto build a query, and to have the system use all journals that meet the criteria for

posting when the batch is run. By selecting this check box, the journal does nothave to exist prior to being selected for the batch processing job.

FIGURE 4.2 POST JOURNALS FORM

Procedure: Post a Journal Batch - Transfer Errors andPost

You can configure the transfer of errors for just the selected lines by clickingDefault values.

1. Select or clear the Transfer errors check box in the Set up posting form, and then click Apply .

2. Click Insert All to apply the setting to all the selected journal linesor click User default to apply the setting to all users.

3. Click OK to return to the Post journals form.4. Click OK to post the multiple journals.

NOTE : If Lines limit is set up in the Journal names form, you may have tocreate several journals during posting. The number of the first journal posted is saved automatically in each associated journal that you create.

NOTE : A power failure during posting can cause some journals to post whileothers do not post. If this occurs, start the posting again by using the samecriteria for subsequent selection in the original request. The journals that did not

get posted appear in this form for posting.

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HINT : Use the Delete posted journals form ( General ledger > Periodic >Cleanup > Ledger journals clean up) to cleanse the Journals form. The Delete

posted journals form deletes all posted journals in the Journals form to free space. This does not delete the posted vouchers.

Approval Journals

To set up an unlimited number of journal templates, use the Journal names form. You can set up the journal templates with or without a mandatory approvalof the transactions before posting. The person responsible for journal routinessets up the approval system in one of the journals.

Scenario: Journal Approval

At Contoso, a sample of 100 daily journal transactions shows that less than halfare completed correctly, are authorized correctly, or have documented supportsufficiently for the recorded transaction amounts. The sample shows that in manyinstances, information fields were left blank or contain insufficient or incompleteinformation.

Without appropriate journal approval controls, the causes of these errors ormisstatements are difficult to identify. Therefore Phyllis, the accountingmanager, has decided to start the journal approval procedure to make surespecific user groups approve and validate the journals.

Procedure: Create an Approval Journal

Perform the following steps to start the approval journal feature.

1. Open the Journal names form by clicking General Ledger , clickSetup , click Journals, and then click Journal Names .

2. Click on the New button and enter the name of the journal that youuse throughout Microsoft Dynamics AX in the Name field. Give ita name that is recognizable by its name alone.

3. Enter a description of the journal's purpose in the Description field.

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Procedure: Create an Approval Journal - Accounts

Perform the following steps to select the Account type and other options for anapproval journal:

1. Select the default account type for the journal name in the Accounttype list. For example, when you record a vendor disbursement andspecify Bank in Account type , posting occurs in the bank accountselected in the journal. At the same time, posting occursautomatically in the bank's posting account in the General Ledger.

2. Optionally, you can select a default offset account for the journal inthe Offset account list.

NOTE : If an offset account is set up, select the Fixed offset account check box to prevent users from changing the default offset account.

3. Select the Active check box to start the approval system. Thisenables journal transactions to be reported as ready, approved, orrejected.

4. Specify the user group whose members should approve the journalin the Approve field.

5. Close the Journal names form.

NOTE : There is also a Workflow approval process which is separate from thisapproval process. if you are using Workflow approval, do not use steps 3 and 4.

Procedure: Create an Approval Journal - Restricting

AccessThe following ways are available to further restrict access to the journal:

• On the General tab, specify if the journal should be available onlyfor a limited group of people. In the Private for user group list,select a user group to restrict the usage of the journal.

• On the Posting restrictions button, you can create an additionallayer of control on posting.

• In the Approval workflow field, you can enable approval workflowfor the journal by selecting and selecting a workflow Configuration .However, if workflow is used, you cannot use the approval systemenabled by the Active field within the same journal name record.

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Procedure: Create an Approval Journal - Entering Data inthe Journal

Perform the following steps to create an approval journal when another personenters data into the journal in which the approval system is set up. Note that thePost button is unavailable until the journal is approved.

1. Go to General Ledger , click Journals , and then click GeneralJournal .

2. Click the New button to create a new journal and select the journalname with the approval system enabled. Other journal types alsomay use the approval system, although this example uses a GeneralJournal.

HINT : View the history of approvals on the History tab of the Journal form andthe Journal voucher form.

3. Click the Lines button to open the Journal voucher form.4. Create the journal transactions by clicking the New button and

entering information in the fields.5. Click Approval, and click Report as ready to make the journal

ready for approval as soon as you complete the transaction.

Procedure: Create an Approval Journal - Approval

Follow these example steps to approve a journal when a member of the usergroup designated in the Journal names form approves, for example, a General

journal . If a different journal type was created and used, the path in step 1 will

be different, but the remaining steps 2 and 3 will be the same.

1. Click General ledger in the Navigation pane, click Journals , thenclick General journal.

2. Click the Approval button, and then click Approve to approve the journal.

3. When the journal is approved, the Post button is enabled within that journal. This allows the user who created the journal and the journallines to post the transactions.

NOTE : If the journal has errors, click Approval , and click Reject .

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Example: Gathering Data for an Approval Journal

The following is an example in gathering some of the data needed to create anApproval journal.

ScenarioPhyllis, the Accounting Manager for Contoso, has the responsibility forguaranteeing the accuracy of transactions posted in Microsoft Dynamics AX.Phyllis has noticed many errors on entries posted by Alfredo Fuentes Espinosa(AFE) in the GenJrn journal, a journal used only by Admin. Now Phyllis hasdecided that entries made to GenJrn must be approved by a member of theFinance team, Alex Roland (ASR). Phyllis needs help establishing the proper

procedures to enable this approval.

What Data Is Needed?

In this scenario, the following tables will be used to assist to gather the neededinformation.

Request to Link Users to Groups Required Data or Field Value

User ID

User Group

User ID

User Group

Request to Enable Journal Approval Required Data or Field Value

Journal Name

Active Select

Approve

Private for user group

How would you complete the following tables to provide Phyllis with the setupthat she needs? Some hints and the completed table are shown in the next lessonsections.

Helpful Information

Here are some hints:

• Alfredo is a member of the Admin user group.• Because only Admin makes entries to the GenJrn journal, you can

use the Private for user group field to prevent other users fromaccessing the journal. If you do this, then the approving user mustalso be a member of the Private for user group value selected to seethe journal for approval.

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Solution: Data Required

The completed tables are as follows:

Request to Link Users to Groups Required Data or Field Value

User ID AFEUser Group Admin

User ID ASR

User Group Finance; Admin

Request to Enable Journal Approval Required Data or Field Value

Journal Name GenJrn

Active Select

Approve Finance

Private for user group Admin

Voucher Templates

A voucher template is a voucher that can be used as the basis for future vouchers.Use voucher templates with a general journal or an accounts payable invoice

journal.

Scenario

Phyllis, the Accounting Manager at Contoso, is entering a voucher to recordinterest expense on a fixed-rate long-term note. The voucher debits InterestExpense and credits Interest Payable for 350.00 U.S. dollars (USD) each.

This voucher for the same amount must be recorded each month. To reducefuture data entry time, Phyllis decides to save the voucher as a voucher template

by amount.

The next time Phyllis records an interest expense, she selects the Load vouchertemplate action and chooses the interest entry. The original ledger accounts andamounts are loaded into the form automatically.

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Scenario

April, the Accounts Payable Coordinator, receives a telephone bill that she mustenter. At Contoso, April records the telephone expenses across all departmentsequally. April enters the voucher with the appropriate department breakdown.The following table shows is an example of the distributions for an invoice in theamount of 600.00 U.S. dollars (USD).

Account Debit Amount Credit Amount

Telephone Expense - Sales 150 USD

Telephone Expense - Accounting 150 USD

Telephone Expense - Production 150 USD

Telephone Expense - Administration 150 USD

Accounts Payable 600 USD

April saves this entry as a Voucher template by percent. This will hold the valueassigned to each account as a percentage of the total. In this case, April willassign each department 25 percent.

The next time April receives the telephone bill, she must retrieve the Vouchertemplate and enter only the amount of the telephone bill. The distributions thenare created based on the original percentage.

Procedure: Create a Voucher Template

Perform the following steps to create a voucher template.

1. Enter a transaction through in the General journal by clickingGeneral ledger , click Journals , click General journal , and thenclick the Lines button .

2. Select a line item.3. Click Functions , and then click Save voucher template .4. From the Template type list, select one of the following:

o Percent - uses the percentage of the original voucher totalrepresented by each voucher line.

o Amount - uses the original voucher total and line amounts.

5. Click OK .

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Procedure: Use a Voucher Template

After a voucher template has been created, perform the following steps to use avoucher template to create a new general journal or accounts payable invoice

journal.

1. Enter a transaction through in the General journal by clickingGeneral ledger , click Journals , click General journal , then click the Lines button .

2. Highlight a line item.3. Click Functions , and then click Select voucher template .4. Select the correct template in the Voucher templates form.5. Click OK .6. If you select a percent voucher template, enter the Amount of the

new transaction. When you create a new voucher based on a percenttype voucher template, the percentage calculated for each new lineautomatically is applied to the value entered in the Voucheramounts dialog. It determines the amount for that new voucherline.

Periodic Journals

A periodic journal only has data entered periodically. For example:

• During each month-end accounting close, a user makes the sameentry with the same account numbers and currency amounts.

• The user sets up a periodic journal to make this process quicker.• Then, each month, the user retrieves the journal and posts it with the

appropriate accounting date.

Procedure: Create a Periodic Journal

Perform the following steps to create a periodic journal that is the same as aregular journal.

1. Click on General Ledger , click Journals , and then click GeneralJournal .

2. Click the New button to create a new journal.3. Use a GenJrn type and enter the periodic journal description to

define it as a periodic journal.4. Click the Lines button to open the Journal voucher window.5. Create the transactions in the periodic journal the same way that you

would create a transaction in a normal General journal. Decidewhether to leave the date field blank. If you plan to use this journalmore than one time, you can leave the date blank. However, if youwant to use the automatic period incrementation functionality of

periodic journals, enter a starting date.

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2. Enter a date to use for the accounting date in the Empty date fieldif the Date field in the periodic journal is empty. If the Date field isempty, the To date is automatically used as a posting date.

3. Select the periodic journal to use in the Periodic journal number field list.

4. Select either Copy or Move in the Copy or move journal field list.This will determine whether or not the lines from the selectedPeriodic journal number are left in a reusable status. If the lines arecopied, you can use the journal again. If the lines are moved, the

journal is not available for further retrieval.5. Click OK to create the journal lines.6. Post the journal as you normally would.7. Go to General Ledger, click Periodic, then click Periodic Journal

to view or create all the periodic journals.

Procedure: Modify a Periodic Journal

After you create a Periodic journal , you can modify it. Perform the followingsteps to modify a periodic journal.

1. Go to and click on General ledger , click Periodic , click Journals ,then click Periodic journals.

2. Click to highlight the desired periodic journal.3. Click the Lines button to open the Journal voucher form.4. Make the changes you want.5. Close the form.

NOTE : You also can create periodic journals by using this form.

Periodic Journal: Fields on The Periodic Tab

You can access the Periodic journal at General ledger, Periodic, Journals,Periodic journals . When you modify a periodic journal, note the followingabout the Periodic tab:

• Unit field - select the unit to use for the selected periodic transaction,for example, Months for monthly postings. If you do not select adate, the Unit field does not apply.

• Number of units field - enter the number of units defined in theUnit field that make up the interval in which to post transactions forthe selected journal line. For example, if you have entered Months inthe Unit field and want to make quarterly postings, enter 3 in theNumber of units field. If you entered Days in the Unit field and 14in Number of units field , you indicate that the periodic journal lineis posted every two weeks.

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• Last date field - this field contains the Session date of the last timeyou transferred the periodic line to a journal. The system updates thefield automatically.

NOTE : To automatically establish an initial baseline date for Periodic journal

posting, ensure that the Date field of the Journal voucher form within a Periodic journal is populated.

Periodic Journal: Using Periodic Tab Fields WhenRetrieving Periodic Journals

You can access the Periodic Tab Fields by clicking General ledger, clickPeriodic, then click Periodic journals. Next, click the Lines button , and thenclick the Periodic tab. Use these fields to determine the next Periodic journal

posting date. You can also determine whether a journal will be retrievedautomatically into the General journal form based on the selection criteria youset up.

Every time you post the Periodic journal by using the General journal form,the Date field in the Periodic journal, Journal voucher is automaticallyincremented by the values set up in the Periodic tab. This field is found byclicking General ledger, click Periodic, then click Periodic journals. Next,click the Lines button , and click the Date field.

When you select a Periodic journal to retrieve into the General journal form,the value found in the To date field (go to General ledger, click Journals, clickLines, click the Period journal button , then click Retrieve journal, then click To date) determines whether to retrieve the journal. The system retrieves the

journal only when the To date field value entered in the retrieval form is equal to

or greater than the Date field in the Periodic journal Journal voucher form line(found at General ledger, click Periodic, click Periodic journals, and then clickLines) .

However, if the Date field in the Periodic journal Journal voucher form line is blank, the line automatically transfers one time per retrieval, and the posting dateis set based on the values entered during retrieval.

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Lab 4.3 - Entering Periodic Transactions

This lab demonstrates creating a Periodic Journal

Scenario

Ken is the Controller for Contoso. It is the end of June and therefore one-sixth ofthe prepaid rent must be expensed. Accounting staff must make an entry to movethe used portion of 1,000.00 USD to Rent Expense. Ken asks you to create thePeriodic journal and post the June entry.

Use the following information to enter the transaction.

Option

Name of Journal RentExp

Description Rent Expense

Date 06/30/2011Account 131100

Transaction Text Rent Expense

Credit $1,000.00

Offset Account 605150 Rent Expense

Unit Month(s)

Number 1

Challenge Yourself!

1. Create a Periodic journal to use for posting the monthly expense.2. Post the entry for June.

NOTE : Set the Session date to 06/30/2011 for this lab.

Need a Little Help?

1. Create a Journal name for RentExp.2. After you enter the Periodic Journal, click the Save button.3. Retrieve the Periodic Journal and post the first transaction on June

30, 2011.

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Post the entry for June:

1. On the Navigation Pane, click General ledger , click Journals , thenclick General journal .

2. Click the New button to add a line.

3. In the Name field, click the arrow to select GenJrn.4. Click the Lines button on the Menu bar.5. Click the Period journal button.6. Click the Retrieve journal option.7. In the To date field, enter 06/30/2011.8. In the Periodic journal number field, use the arrow to select

RentExp.9. Click OK to retrieve the journal information.10. In the Journal voucher form, click the Post button.11. Click Post , then click Post .

12. Close the Infolog form.13. Close the Journal voucher form.14. Close the Journal form.

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General Ledger Transaction Reversal

Microsoft Dynamics AX enables users to easily reverse transactions postedincorrectly. The transaction reversal feature includes:

• Setup options in General Ledger parameters• Number sequences for tracing purposes

• The ability to reverse a transaction and subledger transactions• The ability to undo a reversal• Inquiry on tracing

The following transactions can be reversed:

• General Ledger transactions• Customer transactions, except transactions that relate to sales orders,

projects or bank.• Vendor transactions, except transactions that relate to purchase

orders or bank.• Fixed asset transactions

General Ledger Transaction Reversal - FurtherDescription

You can select only one transaction at a time for reversal, and you must reverse itat the last transaction level. For example, an invoice can only be reversed if it isnot paid. To reverse a paid invoice, you first must reverse the payment.

The reversal functionality applies to:

• The last transaction level• Transactions in the origin module

The reversal functionality does not apply to:

• Transactions included in the bank reconciliation• Project invoices and credit notes• Vendor invoices entered through purchase orders• Sales invoices entered through sales orders• Inventory transactions

• Delivery notes posted into the ledger

NOTE : You also can enable Reason codes for transaction reversal.

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Procedure: Reverse a Transaction - Set Up NumberSequence

Before using reverse functionality, select a number sequence for TransactionReversal and Trace number in General ledger parameters on the Numbersequences tab.

Perform the following steps to reverse a transaction.

1. Enter a number sequence for the Trace number reference. Thesystem uses the trace number on the original transaction and also onthe reversal of the reversal. This makes it possible to trace the:

o Original transactiono Reversed transactiono Reversal of the reversed

2. Enter a number sequence for the Transaction reversal reference.

NOTE : You can set the number sequence to Continuous by clicking General Ledger , click Setup , click General ledger parameters, then click Number Sequences , and check the appropriate box.

3. Optionally, select the Correction check box on the Ledger tab toreverse the connected ledger transaction by using correction. Youcan reverse a debit transaction by adding a minus debit transaction,and you can reverse a credit transaction by adding a minus credittransaction.

NOTE : You cannot reverse a transaction in a previously closed fiscal year.

Procedure: Reverse a Transaction - Transaction Level

Perform the following steps to reverse a transaction in the General ledgermodule:

1. Click General Ledger , click Common, and then click Mainaccounts .

2. Select a Main account.3. Clicked on the Posted button on the tool bar.4. Click Reverse transaction on the action pane strip.5. Select the date of posting for the reversal transaction. The date

cannot be before the original posting date or in a closed period.6. Click OK . The transaction itself and all related transactions that

were created when the original transaction is posted are reversed.

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NOTE : Parameter settings for a module determine whether you must enter areason for the reversal, in addition to entering a posting date.

The results include the following:

• Both new and old reversed transactions now receive a specialmarking ''R(eversed)'' allowing you to select these transactions in:o Reportso Inquirieso Periodic jobs

• The ''R'' marking identifies all transactions settled through reversaland are currently still settled.

Procedure: Reverse a Transaction in Accounts Payableand Accounts Receivables

It is also possible to reverse transactions in Accounts Receivables and AccountsPayable. Below are the steps to reverse a transaction in Accounts Receivable:

1. Click Accounts Receivables , click Common, click Customers,and then click All customers .

2. Select a customer and click Transactions .3. Select a transaction to reverse.4. Click Reverse transaction on the action pane strip.5. Select the date of posting for the reversal transaction. The date

cannot be before the original posting date or in a closed period.

6. Click OK . The transaction itself and all related transactions thatwere created when the original transaction is posted are reversed.

The results include the following:

• Both new and old reversed transactions now receive a specialmarking ''R(eversed)'' allowing you to select these transactions in:o Reportso Inquirieso Periodic jobs

• The ''R'' marking identifies all transactions settled through reversaland are currently still settled.

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Procedure: Revoke a Reversed Transaction

You also can reverse a reversal which involves the following actions:

• Settlements between the original transaction and its reverse arecanceled.

• The original transaction is marked as an original transaction.

Perform the following steps to reverse a reversal.

1. Click General Ledger , click Common, and then click Mainaccounts .

2. Select a main account.3. Clicked on the Posted button on the tool bar.4. Click Reverse transaction on the action pane strip.5. Select the reversed or original transaction to revoke the reversed

transaction.6. Select the date of posting for the revocation transaction, and then

click OK . The reversed transaction and all transactions that youcreated by using the reversal are revoked, and the revocationtransactions share the same trace number.

7. Select a transaction to view all the transactions with the same tracenumber, and then click Reversed Tracing .

NOTE : Reversed tracing is active only for reversed transactions and reversedtransactions that you revoke.

Inquiry and Reports on Transaction ReversalConsider the following when you use inquiries and reports:

• The identification of the reversal (trace number) and the reversalmarking ('R') must be displayed.

• In the dialog of some inquiries and reports in General Ledger,Accounts Receivable, and Accounts Payable, select whether thereport or inquiry should include transactions that are reversed andsettled ('R' transactions).

• The 'Include reversed' parameter is, for example, included in reportssuch as account statements and aging reports.

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Reversing Entries - General Journals

The action of reversing entry functionality lets users enter a general journaltransaction with a reversing date. After you post the transaction in the general

journal, the original transaction is posted based on the transaction date, and thetransaction reversal is posted based on the reversing date.

The action of reversing entry functionality provides an easy way to performtransaction reversal for accruals. You need accrual type transactions to accuratelyreflect balances on financial statements.

Scenario

An interest note is issued on September 16, with interest payable on October 15.Assuming the interest payment at the end of the 30-day period is 100.00 USD,half of the expense must be reported in September, because that is when the costswere incurred. Phyllis, the Accounting Manager, enters a month-end transactionon September 30, as shown in the following table.

Account Debit amount Credit amount

Interest on bank loans 50 USD

Long term interest payable 50 USD

Because the full payment will not be made until October 15, Phyllis sets the previous transaction with a reversing date of October 1. This action creates areversal of the previous transaction in the new accounting period, as shown in thefollowing table.

Account Debit amount Credit amountLong term interest payable 50 USD


When the actual transaction for payment of interest is entered on October 15, thefollowing transaction occurs:

Account Debit amount Credit amount


Cash 100 USD

The overall balance for the interest expense for October is a debit of 50.00 USD.

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Procedure: Create a Reversing Entry

You can set up the Reversing entry and Reversing date fields in the GeneralJournal header to default on all lines or on the journal lines.

Perform the following steps to designate on the header that a general journalentry is a reversing entry:

1. To access the Journal form, click General ledger , click Journals ,then click General journal .

2. Enter or select a journal.3. Select the Reversing entry check box. If the Reversing entry

check box is selected, you must enter a date in the Reversing date field.

4. In the Reversing date field, enter a posting date for the reversingvoucher.

NOTE : You also can access the Reversing entry and Reversing date fields fromthe General tab in the Journal form .

NOTE :To change the reversing date of an individual transaction in this journal,click the Lines button to open the Journal voucher form. Enter a new date in the

Reversing date field.

Inquire and View Reports on Daily Journal Transactions

You can run various reports to help you review and reconcile General Ledger posted data.

Report: Print Journal

There are two ways to print a list of transactions in a General journal:

• Go to General ledger, click Journals, then click General journal. Next, highlight and select the journal you wish to print, click thePrint button, and finally click Journal.

• Go to General Ledger , click Reports, click Journals , and clickPrint Journal to print a list of transactions entered in the current

journal.

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Report: General Journal Entries That Have Not BeenPosted

The Genera l journal entries that have not been posted prints the journal linesthat have not yet been posted.

To print the Genera l journal entries that have not been posted report, openGeneral Ledger , click Reports , click Journals , then click Genera l journalentries that have not been posted .

NOTE : The account must be the account in the Chart of Accounts. For example,no value displays if you enter the account in the journal as a debit to the bankaccount, and then later you make an inquiry on the ledger account for that

specific bank account.

Report: Account Balances

To verify a specific account balance, go to General Ledger, click Common, click Main accounts. Highlight the desired account and view the FactBox paneon the right of the form to view account balances.

Report: Balance List

Print a Balance list report that shows the opening and closing balance for allaccounts for a given period. Use the report to do the following:

• View debit and credit totals• Quickly analyze development in the different accounts

To access this report, click General ledger , click Reports, click Transactions, then click Balance list .

Report: Trial Balance

If the total of the debits and credits are error free and posted correctly to theGeneral Ledger:

• The total of all the debit balances should equal the total of all thecredit balances. If the debits do not equal the credits, then an erroroccurred somewhere in the process.

• The total of all accounts on the debit side and on the credit side isknown as the trial balance. Print the trial balance to verify the debitsand the credits equal.

To access this report, click General ledger , click Reports, click Transactions, then click Trial balance.

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Report: Audit Trail

Use the Audit trail form to trace a transaction to its origin for internal andexternal auditing and analysis. An audit trail is a time-stamped record of all thechanges made to a record. It contains the name/identification of the user whomade the modification and typically also includes the reason for the change. Anaudit trail enables you to audit the system for a record of alterations, and also toreconstruct the data at a specified time.

To access this form, click General ledger , click Inquiries, then click Audittrail .

Report: Voucher Transactions

Use the Voucher Transactions form to view ledger transactions by vouchernumber and posting date.

To access this form, click General ledger, click Inquiries, then click Vouchertransactions. After you enter the criteria in the Inquiry form, click OK tocontinue.

Summary

By using the connectivity in Microsoft Dynamics AX, many transactions in thegeneral ledger are posted automatically. This applies to sales and purchases, costof goods sold, discounts, interest payments, exchange rate adjustments ofaccounts receivable and accounts payable, project invoices and costs, work in

progress, fixed asset transactions and inventory transactions.

However, you also can enter General Ledger transactions manually when you usegeneral ledger journals. You can control the posting in the journals by the wayyou set up of the Chart of Accounts and the journal templates. The journal itselfalso offers various posting options.

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Test Your Knowledge

Test your knowledge with the following questions.

1. General journals are used to post transactions in which of the followingaccounts? (Select all that apply)

( ) General ledger

( ) Bank( ) Customer

( ) Vendor

2. The information you enter in a general journal is temporary and changeableas long as the journal is unposted.

( ) True

( ) False

3. What information is needed to create a journal entry? (Select all that apply)

( ) Accounting date

( ) Ledger account

( ) Offset account( ) Debit or credit amount

4. When can Multiple journals be posted? (Select all that apply)

( ) Yearly

( ) Immediately

( ) On a delayed schedule( ) Set up as a job for batch processing

5. In Microsoft Dynamics AX, you can set up journals that require mandatoryapproval.

( ) True

( ) False

6. With which journals can you use voucher templates? (Select all that apply)

( ) General journal

( ) Fixed assets journal( ) Accounts payable invoice journal

( ) Purchase journal

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7. Which voucher template type allows users to recreate a voucher for the sameaccounts and values as the original entry?

( ) Percent( ) Division

( ) Aggregate

( ) Amount

8. Is it possible to select multiple transactions for reversal at the same time?

( ) Yes( ) No

9. Which of the following statements correctly describe Microsoft DynamicsAX Reversing Entry functionality? (Select all that apply)

( ) Reversing entry functionality allows users to enter a general journaltransaction with a reversing date.

( ) After you post transactions, the original transaction posts based on thetransaction date, and the transaction reversal posts based on thereversing date.

( ) Reversing entry functionality provides transaction reversal foraccruals. Accrual type transactions are needed to accurately reflect

balances on financial statements.

( ) Reversing entry functionality serves only the purpose of correcting or backing out incorrect transactions.

10. Which of the following fields designates a reversing entry? (Select all thatapply)

( ) Reversing entry( ) Correcting entry( ) Reversing date

( ) Correction date

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Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from thischapter

1.

2.

3.

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Solutions

Test Your Knowledge

1. General journals are used to post transactions in which of the following

accounts? (Select all that apply)(√) General ledger

(√) Bank

(√) Customer

(√) Vendor

2. The information you enter in a general journal is temporary and changeableas long as the journal is unposted.

(• ) True( ) False

3. What information is needed to create a journal entry? (Select all that apply)

(√) Accounting date

(√) Ledger account

(√) Offset account

(√) Debit or credit amount

4. When can Multiple journals be posted? (Select all that apply)

( ) Yearly

(√) Immediately( ) On a delayed schedule

(√) Set up as a job for batch processing

5. In Microsoft Dynamics AX, you can set up journals that require mandatoryapproval.

(• ) True( ) False

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6. Which journals can you use voucher templates? (Select all that apply)

(√) General journal( ) Fixed assets journal

(√) Accounts payable invoice journal

( ) Purchase journal7. Which voucher template type allows users to recreate a voucher for the same

accounts and values as the original entry?

( ) Percent

( ) Division( ) Aggregate

(• ) Amount

8. Is it possible to select multiple transactions for reversal at the same time?

( ) Yes

(• ) No

9. Which of the following statements correctly describe Microsoft DynamicsAX Reversing Entry functionality? (Select all that apply)

(√) Reversing entry functionality allows users to enter a general journaltransaction with a reversing date.

(√) After you post transactions, the original transaction posts based onthe transaction date, and the transaction reversal posts based on thereversing date.

(√) Reversing entry functionality provides transaction reversal foraccruals. Accrual type transactions are needed to accurately reflect

balances on financial statements.

( ) Reversing entry functionality serves only the purpose of correcting or backing out incorrect transactions.

10. Which of the following fields designates a reversing entry? (Select all thatapply)

(√) Reversing entry( ) Correcting entry

(√) Reversing date

( ) Correction date

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Documents

AX2012_ENUS_FINI_04