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By Peter Muscat

If you have any questions, feedback or suggestions regarding Microsoft Dynamics NAV (Navision), please do not hesitate to contact me on kaizenlog@gmail.com or by using the contact form on the right.

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Wednesday, October 19, 2011

Microsoft Dynamics NAV 2009: Finance - General Ledger

 Objectives

The objectives are:

  • Explain the use of the Chart of Accounts
  • Explain the elements of the G/L Account Card
  • Explain the Chart of Account elements
  • Explain the Budgets feature in Microsoft Dynamics NAV 2009
  • Explain the G/L Budgets page elements
  • Demonstrate the process of setting up budgets manually
  • Explain additional budget processes, such as deleting budget entries
  • Explain the process of creating budgets by using the Copy Budget function
  • Explain the process of creating budgets by using the Export Budget and Import Budget functions 

 Introduction

General Ledger is the central application area of Microsoft Dynamics NAV® 2009. General Ledger is where financial information is:

  • Posted
  • Summarized
  • Reported

Two main components of the General Ledger application area are Chart of Accounts and G/L Budgets. The Chart of Accounts provides quick access to G/L accounts and balances, and the Budgets feature provides a comparison between actual amounts and budgeted amounts, by using a combination of:

  • G/L accounts
  • Periods
  • Global dimensions
  • Budget dimensions 


 Chart of Accounts Overview

A company's financial reporting consists of an Income Statement and a Balance Sheet.

Each account in the Income Statement and the Balance Sheet is called a G/L Account, and all of the G/L Accounts makes the Chart of Accounts list.

G/L Accounts is created in the Chart of Accounts list as a G/L Account Card.



 G/L Account Card

In the Chart of Accounts list, all G/L accounts are available and can be viewed at one time. However, there is also a G/L Account Card for each account that can be accessed from the Chart of Accounts list.



 G/L Account Card G/L Account Card Part 2

To open an account card page, follow these steps:

  1. In the Navigation Pane, click the Departments button
  2. Click Financial Management and then General Ledger.
  3. On the General Ledger List page, select Chart of Accounts.
  4. Select the relevant account to view.
  5. Click Actions and then click View.

NOTE: The fields on the Consolidation FastTab are explained in the Multi Site Operations in Microsoft Dynamics NAV 2009 courseware, and the field on the Reporting FastTab is explained in the Multicurrency lesson in this content.



 G/L Account Card G/L Account Card Action Pane

The G/L Account Card Action Pane has the following navigation accesses:

  • Actions
  • Related Information
  • Reports

The following single-click accesses are also available:

  • General Posting Setup
  • VAT Posting Setup
  • G/L Register
  • Detail Trial Balance
  • Trial Balance
  • G/L Register 


 G/L Account Card Actions

The Actions button provides the most relevant navigation accesses for the G/L Account Card.

From the Actions button, it is possible to view, edit, delete, or create a new G/L Account.

It is also possible to Refresh or Clear Filters in the G/L Account Card page. The Send To option makes it possible to attach the G/L Account Card to an e-mail or transfer the G/L Account Card to Microsoft® Word or Microsoft® Excel®.

In the Actions button's drop-down list, it is also possible to point to Functions.



 G/L Account Card Functions

Always select the Functions option under Actions. The Functions option on the G/L Account Card page accesses the Apply Template function. This function is available when Master Templates are set up during the Rapid Implementation Methodology (RIM) process.

Master Templates for G/L Accounts provide the ability to:

  • Create multiple default G/L Account set ups for accounts that are frequently created, such as expenses.
  • Use these templates as a basis when creating accounts of this type.
  • Eliminate the need for repetitive data entry for similar account creation.

For more information about RIM and Master Templates, refer to the Application Setup in Microsoft Dynamics ® NAV 2009 courseware.

After you create accounts in the G/L Account Card, run the Indent Chart of Accounts function.

The Indent Chart of Accounts function automatically update or fill in the Totaling field for End-Total accounts instead of the user adding the numbers manually.



G/L Account Card Account Button

The Account Button is listed under the Related Information menu on the action pane. The Account button contains the following options:

  • Ledger Entries - Display all ledger entries for the account.
  • Comments - Display or enter comments that relates to the account.
  • Dimensions - Display or enter default dimensions for the account.
  • Extended Texts - Display or enter extended text for the account.
  • Receivables-Payables - Provides a summary of the following:
    • Expected net operational cash flow from customers and vendors over time.
    • Open customer and vendor ledger entries sorted by their Due Date instead of Posting Date.

This summary can be viewed by the:

    • Period, such as daily, monthly, or quarterly.
    • Expected cash flow movement for a period by clicking the Net Change option.
    • Expected net balance of outstanding customer and vendor balances at any date by clicking the Balance at Date option.
  • Where-Used List - Displays a list of tables where this G/L account is used. 



 G/L Account Card Balance Button

Use the Balance Button to display information about the balances and transaction amounts for the account. Each page accessed from this Quick Path contains filters to help in viewing the information more specifically.

To access the Balance button, click on Related Information and then click to Balance.

The Balance button has the following options:

  • G/L Account Balance - Displays the balance or net change for the G/L account over time.
  • G/L Balance - Displays the balance or net change for all G/L accounts for a specific time period.
  • G/L Balance by Dimensions - Displays balance or net change information for all accounts. The information displayed in columns and lines can be set to one of the following views:
    • G/L account
    • Period
    • Global Dimensions 1 and 2 


 G/L Account Card General FastTab

The following fields appear on the General FastTab:

  • No.: The Chart of Account number of the G/L Account.
  • Name: The Chart of Account name (description)
  • Income/Balance: Indicates whether the account is classified as an Income Statement of a Balance Sheet account. This field is important in determining whether an account has to be closed at in the fiscal year end or not.
  • Debit/Credit: Indicates the type of entries that will usually be posted to this account. The selection made does not restrict the type of transaction posted to the account.
  • Account Type: This field indicated the purpose of the account in the different list, journals, and reports. The options are as follows:
    • Posting: The only account type where entries can be posted.
    • Heading: Used for description purposes only.
    • Total: Used to total the accounts ranged in the totaling field.
    • Begin-Total: Marks the beginning of an account range in the totaling field.
    • End-Total: Marks the end of an account range in the totaling field.
  • Totaling: Determines the accounts to totaling from the Account Type Total window. This gives the option to totaling groups of accounts that are not in the same classification, such as Gross Income. The field also or the End-Total Account Type.
  • No. of Blank Lines: Determine the number of blank lines before the account is displayed in a report.
  • New Page: Determines whether a new report page is printed after the account is displayed in the report. 




 G/L Account Card General FastTab

The following fields appear on the General FastTab:

  • No.: The Chart of Account number of the G/L Account.
  • Name: The Chart of Account name (description)
  • Income/Balance: Indicates whether the account is classified as an Income Statement of a Balance Sheet account. This field is important in determining whether an account has to be closed at in the fiscal year end or not.
  • Debit/Credit: Indicates the type of entries that will usually be posted to this account. The selection made does not restrict the type of transaction posted to the account.
  • Account Type: This field indicated the purpose of the account in the different list, journals, and reports. The options are as follows:
    • Posting: The only account type where entries can be posted.
    • Heading: Used for description purposes only.
    • Total: Used to total the accounts ranged in the totaling field.
    • Begin-Total: Marks the beginning of an account range in the totaling field.
    • End-Total: Marks the end of an account range in the totaling field.
  • Totaling: Determines the accounts to totaling from the Account Type Total window. This gives the option to totaling groups of accounts that are not in the same classification, such as Gross Income. The field also or the End-Total Account Type.
  • No. of Blank Lines: Determine the number of blank lines before the account is displayed in a report.
  • New Page: Determines whether a new report page is printed after the account is displayed in the report.


 G/L Account Card General FastTab Part 2
  • Search Name: Used to search for a particular account when the account number cannot be recalled.
  • Balance: Displays the current balance of the account. Click the balance amount to access the General Ledger Entries list.
  • Reconciliation Account: Determines whether the G/L account is included in the Reconciliation list in the general journals. Use the Reconciliation list before posting to review the effect of posting the accounts in the journal.
  • Automatic Ext. Texts: If selected, extended text set up on the accounts is automatically added to sales and purchase documentation in the Description field. If not selected, extended text can still be set up on the account and added to documents manually. To create the extended text, click Related Information, select Account, and then select Extended Text.
  • Direct Posting: Indicate whether posting is allowed directly into this account from a journal line. Be aware that this field is automatically checked when new accounts are created.
  • Blocked: If selected, prevents entries from posting to this account. Accounts can be blocked and reopened as needed.
  • Last Date Modified: System generated field; displays the date when the G/L account was last modified. 


 G/L Account Card Posting FastTab

The Posting FastTab contains the following fields that determine how the G/L and VAT transactions are recorded:

  • Gen. Posting Type: Defines whether the account is used only for a Sale or Purchase transaction or with both types of transactions. This field is:
    • Used with the VAT Bus. Posting Group and VAT Prod. Posting Group fields to find the account the program posts VAT.
    • Filled in only for revenue and expense accounts where VAT is involved.
  • Gen. Bus. Posting Group: Identifies the default General Business Posting Group for the account. This field:
    • Indicates whom you sell-to or buy-from.
    • Is used with the Gen. Prod. Posting Group and Gen. Posting Type fields to find the G/L accounts to post to for sales, purchases, discount amounts, COGS, and inventory adjustments.
  • VAT Bus. Posting Group: Identifies the default VAT Business Posting Group for the account. This field is used with the VAT Prod. Posting Group and Gen. Posting Type fields to:
    • Determine VAT percent and VAT calculation type.
    • Find the G/L accounts where the program posts VAT. 



 G/L Account Card Posting FastTab Part 2
  • VAT Prod. Posting Group: Identifies the default VAT Product Posting Group for the account. This field is used with the VAT Bus. Posting Group and Gen. Posting Type fields to:
    • Determine VAT percent and VAT calculation type.
    • Find the G/L accounts where the program posts VAT.
  • Default IC Partner G/L Acc. No.: Identifies the default IC G/L account number for this G/L account. When entering this G/L account in the intercompany general journal, the IC G/L account specified in this field is used as the default balancing account number.

After the posting types and the posting group codes are assigned to a G/L account, these codes are automatically inserted in a journal, sales, or purchase line when the G/L account is selected.

NOTE: If the general posting groups are set up with default VAT posting groups, the VAT posting group fields are automatically populated with the default values when the general posting group(s) is selected.



G/L Account Card
Create an Account in the G/L Account Card

To create an account in the G/L Account Card, follow these steps:

  1. In the navigation pane, click the Departments button and then click Financial Management.
  2. In the Financial Management page, click General Ledger and then click Chart of Accounts.
  3. In the Action Pane select the New button.
  4. On the General FastTab, in the No. field, enter the account number.
  5. In the Name field, enter a description.
  6. In the Income/Balance field, click the drop-down list and select the relevant option.
  7. In the Account Type, field, click the drop-down list and select the relevant option.
  8. If necessary, enter the range in the Totaling field.
  9. If necessary, enter a value in the No. of Blank Lines field.
  10. Place check marks in the check boxes as needed.
  11. On the Posting FastTab, in the Gen. Posting Type field, click the drop-down list and select the relevant option.
  12. In the Gen. Bus. Posting Group field, click the drop-down list and select the relevant option.
  13. In the Gen. Prod. Posting Group field, click the drop-down list and select the relevant option.
  14. Enter information on the Consolidation and Reporting tabs as necessary. 


 G/L Account Card Create an Account in the G/L Account Card Part 2

To assign a dimension to the G/L account, follow these steps:

  1. Select Related Information on the action pane, point to Account, and then click Dimensions-single.
  2. In the Dimension Code field, click the drop-down list and select the relevant dimension from the list.
  3. In the Dimension Value Code field, click the drop- down list and select the relevant dimension value from the list.
  4. If there are dimension posting requirements, in the Value Posting field, click the drop-down list and select the appropriate option.
  5. Close the Default Dimension and the G/L Account Card pages. 


 G/L Account Card Create an Account in the G/L Account Card Part 3

To indent the new G/L account, follow these steps:

  1. In the Chart of Accounts list, locate and select the new account.
  2. Click Actions, point to Functions, and then click Indent Chart of Accounts.
  3. Click Yes to run the indent function.
  4. Close the Chart of Accounts list. 



 Chart of Accounts Page Overview

The Chart of Accounts page contains the same fields on the G/L Account Card page in a table format. In addition to the information on the individual account cards, the Chart of Accounts list displays the current Net Change and Balance information for the accounts.

If the account numbers are numeric only, they are sorted differently, depending on whether Microsoft Dynamics NAV Server or the Microsoft® SQL Server® is used:

  • With the Microsoft Dynamics NAV Server, account numbers are sorted in ascending numeric order.
  • With the Microsoft SQL Server, account numbers are sorted in ascending alphabetical order.

Therefore, care must be taken when setting up a numeric account number structure to make sure the correct ordering of accounts in the chart of accounts.


 Chart of Accounts Page Overview Chart of Accounts list Overview

The Chart of Accounts page contains an Action Pane with options similar to the G/L Account Card page:

  • Actions
    • Functions
  • Related Information
    • Account
    • Balance
  • Reports

And the following single-click accesses:

  • New
  • Indent Chart of Accounts
  • G/L Register
  • Detail Trial Balance
  • Trial Balance
  • G/L Register

To use the options for an account in this page, select the line and then select one of the options.


 Chart of Accounts Page Overview Account Button

The Account button contains the following functions:

  • Ledger Entries - Same functions as described in the G/L Account Card section.
  • Comments - Same functions as described in the G/L Account Card section.
  • Dimensions:
    • Dimensions - Single - The same function as the Dimensions function on the account card.
    • Dimensions - Multiple - Used to assign the same default dimensions to multiple accounts.

      Because the Chart of Accounts page is a list of accounts, it is possible to assign the same default dimensions to several accounts by selecting the relevant account lines. Therefore, reducing the entry time is needed for setting up default dimensions.
  • Extended Texts - Same functions as described in the G/L Account Card section.
  • Receivables-Payables - Same functions as described in the G/L Account Card section.
  • Where-Used List - Same functions as described in the G/L Account Card section.


 Chart of Accounts Page Overview Balance Button

The Balance button contains the following options:

  • G/L Account Balance - Same functions as described in the G/L Account Card section.
  • G/L Balance - Same functions as described in the G/L Account Card section.
  • G/L Balance by Dimension - Same functions as described in the G/L Account Card section.
  • G/L Account Balance/Budget - Displays the actual and budgeted balance or net change for the G/L account over time.
  • G/L Balance/Budget - Displays the actual and budgeted balances or net change for all G/L accounts for a specific time period.
  • Chart of Accounts Overview - Displays the Chart of Accounts that have different levels of detail. Use the Expand and Collapse feature to view only header and footer accounts or all the accounts in between. 


 Chart of Accounts Page Overview Functions

The Functions button contains a different function: the Indent Chart of Accountsfunction. This function is used to indent accounts according to the defined hierarchy.

Establish the hierarchy by using the account types Begin-Total and End-Total. Account numbers within this range are included in the End-Total range in the Totaling field.

NOTE: The Indent Chart of Accounts function is also available from the Action Pane.



 Chart of Accounts Page Overview Assign the Same Dimensions to Multiple G/L Accounts

To assign the same dimensions to multiple G/L Accounts, follow these steps:

  1. In the Chart of Accounts page, select all the accounts to assign dimensions to.
  2. Click Related Information and point to Account, point to Dimensions, and then click Dimensions - Multiple.
  3. Click New to create a new dimension.
  4. Fill in the Dimension Code, Dimension Value Code, and Value Posting fields.
  5. Close the Default Dimension-Multiple page.
  6. Verify that the dimension is assigned to multiple accounts by selecting an account, clicking Related Information, pointing to Account, and then clicking Dimensions - Single.
  7. Close the Default Dimension page and repeat step 5 for a different account. 


 General Ledger Budgets

In Microsoft Dynamics NAV 2009, the budget feature provides the opportunity to:

  • Create multiple budgets for identical time periods by using separate names.
  • Create simple or complex budgets by selecting a combination of G/L account, period, the two global dimensions, and four budget dimensions.
  • Copy budgets from previous periods and revise budget figures by using an adjustment factor.
  • Export budgets to and import budgets from Microsoft® Excel®



 General Ledger Budgets Setting Up G/L Budget Names

Users can set up multiple budgets for identical time periods by creating budgets with separate names in the G/L Budget page. Global dimensions are available on all budgets, but users can specify four additional Budget dimensions on each budget.

Budget dimensions can be used to:

  • Set filters on a budget
  • Add dimension information to budget entries

To complete the G/L Budget Names page, follow these steps:

  1. In the Navigation Pane, click the Departments button and then click Financial Management.
  2. In the Financial Management page, click General Ledger and then click G/L Budgets.
  3. In the Action Pane in the G/L Budget page, select the New button.
  4. In the Name field, enter a unique identifier for this budget.
  5. In the Description field, enter a short description.
  6. In the Budget Dimension 1 Code field, click the Drop-down list and select the relevant dimension, as needed.
  7. In the Budget Dimension 2 Code field, click the Drop-Down list and select the relevant dimension, as needed.
  8. In the Budget Dimension 3 Code field, click the Drop-Down list and select the relevant dimension, as needed.
  9. In the Budget Dimension 4 Code field, click the Drop-Down list and select the relevant dimension, as needed.
  10. Click OK



 Budget

The G/L Budget page lists all the budgets that are set up for a company.

The budgets are set up in a matrix page: the Budget Matrix page. The Budget Matrix page displays budgeted amounts in various views. This includes the following:

  • G/L accounts in different time periods
  • Dimensions in different time periods
  • Dimensions and G/L accounts
  • Dimensions and Dimensions 


 Budget Budget Page

To set up the Budget Matrix page, access the G/L Budget page by clicking the Department button, click Financial Management. In the Financial Management page, click General Ledger and then click G/L Budgets, select the budget to view and double-click.

The Budget page contains four FastTabs:

  • General
  • Filters
  • Options
  • Matrix Options 



 Budget General FastTab

On the General FastTab of the header, the following fields appear:

  • Budget Name - Identifies the name of the budget.
  • Show as Lines - Determines how the lines are displayed. The options are as follows:
    • Global Dimension 1 and 2
    • G/L Account
    • Period
    • Budget dimensions, if they are specified for the selected budget
  • Show as Columns - Determines how the columns are displayed. The options are the same as in the Show as Lines field. 


 Budget Filters FastTab

The Filters FastTab contains fields used to determine how the information in the Budgetwindow is displayed. This includes the following:

  • Date Filter - Used to filter amount fields by date. If this field contains starting and ending dates for a time period, the values in the:
    • Net Change and Budgeted Amount fields will display the net change on an account during that period.
    • Balance at Date and Budget at Date fields will show the balance from the starting to the ending dates of the filter.
  • G/L Account Filter - Used to set a filter for G/L accounts so that the values in the following fields are based only on the G/L accounts included in the filter:
    • Balance
    • Budget at Date
    • Budgeted Amount 


 Budget Filters FastTab Part 2
  • Department Filters and Project Filters - Used to set a filter for a dimension so that the values in the following fields are based only on the dimension values included in the filter:
  • Net Change
  • Balance at Date
  • Balance
  • Budget at Date
  • Budgeted Amount
  • Area Filters and Area Filters and two other Budget Dimension Filters - Used to set a filter for a budget dimension so that the amounts in the budget fields are based only on entries with the dimension values included in the filter.

NOTE: The more filters used in the G/L Budget, the more detail is included in management reporting. It is recommended that you enter and filter budget information in the same way as when you are recording G/L entries.



 Budget Options FastTab

The Options FastTab contains two fields:

  • Rounding Factor - Determines how the amounts in the columns are rounded.
  • Show Column Name - If selected, the descriptive names given to dimension values and G/L accounts are displayed instead of the corresponding codes. 


 Budget Matrix Options FastTab

The Matrix Options FastTab contains two fields:

  • View By - Use to adjust the period, such as days, months, years, and accounting periods.
  • Column Set - the system automatically updated this field determined by the filter set in the View by field. 



 Budget Budget Matrix Page

To access the Budget Matrix page, click Show Matrix in the Budget page's Action Pane.

In the lines, enter and view the budgeted amounts.

From the Action Pane, you have access to alternative views of the budgets and the ability to perform budget-related functions, such as:

  • Reversing column and line displays
  • Copying and deleting budgets
  • Importing from and exporting to Excel 


 Budget Budget Lines

The budget lines are separated into two sections:

  • The left pane defines the lines as selected in the Show as Lines in the General FastTab.
  • The right pane defines the columns as selected in the Show as Columns field in the General FastTab.

The fields for the lines are static regardless of the selection in the Show as Lines field:

  • Code, Name - Displays the code and name of the G/L Account, Dimension, or Period.
  • Budgeted Amount - Displays the total budget of the selected G/L account, Dimension, or Period. This field is automatically calculated and updated. The underlying entries can be accessed by clicking the AssistButton in this field.

The column fields are dynamic and determined by the selection the Show as Columns field.




 Budget Balance Button

To access the Balance button, click Related Information in the Action Pane and point to Balance.

The Balance button contains two options:

  • G/L Account Balance/Budget - Displays a summary of the following for the account selected on the Budget Matrix page:
    • Debit and credit balances
    • Budgeted amounts for different time periods
  • G/L Balance/Budget - Displays a scrollable summary, for the time period selected, of the following for each account in the chart of accounts:
    • Debit and credit balances
    • Budgeted amounts