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Introduction
Financial Management Setup describes in detail each area that needs to be set up
to use financials in Microsoft Dynamics® NAV 2009.
• General Ledger
• Accounting Periods
• Trail Codes, including:
o Source Codes
o Reason Codes
NOTE: There are other setup areas in the General Ledger, such as Currencies,
No. Series, Dimensions, and Posting Groups. The setup of these areas is
discussed in the Application Setup Microsoft Dynamics® NAV 2009 courseware.
• General
• Numbering
• Dimensions
• Reporting
• Application
General FastTab
The General FastTab contains the basic setup defaults for General Ledger and
has the following fields:
NOTE: Specific user posting date restrictions are specified in the User Setup
window. If there are no user restrictions, the company defaults are in effect. If
there are no company defaults, there are no restrictions on dates for data entry
and posting
• Register Time - Specify whether the system registers the user's time
usage.
• Local Address Format - Specify the address format that is used on
printed documents
• Local Cont. Addr. Format - Specify where the contact name has to
appear in mailing addresses.
Numbering FastTab
Bank Account Nos. is the only field on the Numbering FastTab. In this field,
enter the code for the number series that will be used to assign numbers to bank
accounts.
No. Series are described and set up in the Application Setup in Microsoft
Dynamics® NAV 2009 courseware.
Dimensions FastTab
The Dimensions FastTab, specify the global and the shortcut dimensions to be
used for financial reporting.
The codes specified here are selected from the dimensions set up in the
Dimension table, as described in the Dimensions section in the Application Setup
in Microsoft Dynamics NAV 2009 courseware.
Global dimensions can be used as filters for G/L entries or on all reports, account
schedules, and batch jobs.
Determine which two dimensions are likely to be analyzed most frequently and
select these as the two global dimensions.
Global Dimensions
To change the Global Dimensions, click Actions, point to Functions and then
select Change Global Dimensions
Use the drop-down list to change one or both of the global dimensions and then
click OK to run the Change Global Dimensions batch job.
NOTE: Changing a global dimension code requires that the system change
entries already posted. Carefully consider which dimension codes are designated
as a global dimension to minimize the need for future changes.
Payment Tolerance
To change the Payment Tolerance, click Actions, point to Functions and then
select Change Payment Tolerance
Reporting FastTab
The Reporting FastTab is used to determine whether and how additional
reporting currency is used. Additional reporting currency is used when
transaction information also must be available in a currency other than local
currency.
Application FastTab
The fields on the Application FastTab are used to specify:
Accounting Periods
Before you can post in a fiscal year in Microsoft Dynamics NAV 2009:
The shortest possible accounting period is one day and at least one accounting
period must be set up for each fiscal year.
• Manually
• Automatically, by using the Create Fiscal Year batch job.
4. In the Starting Date field, enter the date that the accounting period
begins.
5. In the Name field, the system automatically updates the name of the
month that corresponds to the Starting Date.
6. Select the New Fiscal Year check box to indicate the start of the
year.
7. Repeat steps 4-5 for each month in the period.
The New Fiscal Year check box must contain a check mark if an accounting
period is the first one in a fiscal year. Microsoft Dynamics NAV 2009 uses that
period to determine which periods to close when the Close Year function is run.
4. In the Starting Date field, enter the date on which the fiscal year
starts.
5. In the No. of Periods field, enter the number of accounting periods
the fiscal year will be divided into. There can be from 1 to 365
periods.
6. In the Period Length field, enter how long each accounting period
will be, for example, 1M = 1 month, 1Q = 1 quarter, and so on.
7. Click OK.
• Inventory Period
• Close Year
Inventory periods are discussed and set up in Trade in Microsoft Dynamics NAV
2009 courseware. The Close Year process is discussed in the chapter Year End
Closing Processes of this courseware.
Reports
The Accounting Periods window also has the option to print a Trial Balance by
Period. Select the option and enter the parameters for the report
As the controller at CRONUS International Ltd., you have to create a new fiscal
year for 2011. Quickly create the new year by using the following information:
• The fiscal year begins on February 1, 2011 and ends on the January
31, 2012.
• The length of an accounting period is a month.
Challenge Yourself!
Create the fiscal year for 2011 as specified in the scenario.
Step by Step
Trail Codes
Audit trails in Microsoft Dynamics NAV 2009 begin with Trail Codes. There are
three elements to set up in relation to Trail Codes:
• Source Codes
• Source Code Setup
• Reason Codes
When a new company is set up, the Source Code and Source Code Setup tables
are automatically populated. Reason Codes must be set up manually.
Source Codes
Entries are created in the financial statements when:
Use Source codes to help find the point of origin for an entry. Source codes are
the basis for the audit trail in Microsoft Dynamics NAV 2009 and are assigned to
transactions and journals.
Microsoft Dynamics NAV 2009 provides source code system defaults. As new
journals or data entry points are added, source codes have to be added to
determine where the transaction originated.
System defaults and access to the posted entries for each source code are
available from the Source Code window. To open this window and review the
entries, follow these steps:
Set up a new source code by selecting New and entering the new code and
description in the line.
Typically, the default source code set up is not changed. However, if a different
source code identification is required, the changes can be made from the Source
Code Setup window.
3. In the appropriate field, select the drop-down list. The Source Code
window appears.
4. Select the new code in the Code field.
5. Press TAB or ENTER to commit the change to the field.
All the next posted entries will have the new source code.
Reason Codes
Reason codes are used to indicate why an entry was created. For example, if
items from a sale must be returned, a reason code is set up to mark the reason,
such as damaged, wrong color, or wrong size.
When the codes are linked to a journal line or a sales or purchase header,
Microsoft Dynamics NAV 2009 marks all entries with the reason code during
posting. This allows for the posted ledger entries to be filtered by reason code.
• Creation Date
• User ID
• Source Code
• Journal Batch Name
• If the journal was reversed
• From Entry No. and To Entry No.
• From VAT Entry No. and To VAT Entry No.
To open the window where this information is recorded, on the Navigation Pane,
click the Departments button, click Financial Management, and then click
General Ledger. In the General Ledger window, in the bottom of the window
under History, select G/L Registers.
The G/L Register window is used to determine where transactions were posted
in the system that is based on the assigned Source Code.
• General Ledger
• Customer Ledger
• Vender Ledger
• Reverse Register
• Bank Account Ledger
• Fixed Assets Ledger
• Maintenance Ledger
• VAT Entries
7. Source Codes and Reason Codes are important parts of the _____
trail.
8. To view activity posted in Microsoft Dynamics NAV 2009, open the
G/L ________ window.
9. ______ Codes identify where transactions originate.
10. ______ Codes are used to indicate why an entry was created.
11. To modify the default Source Codes used, changes are made to the
Source Code _____ window.
Summary
Financial Management Setup describe the areas that must be set up to use
Financial Management in Microsoft Dynamics NAV 2009.
The General Ledger Setup window, gives an quick and fast view of all the
options there is in Microsoft Dynamics NAV 2009 when you have to setup the
general ledger for a company.
Accounting periods helps manage to open and close the financial year, so all
entries are in the correct periods.
Audit trails of Source Codes and Reason Codes gives the company a good
documentation for the financial reporting.
The areas discussed in this content are the basis of the General Ledger Setup.
There are many other areas that must be set up in Microsoft Dynamics NAV
2009, such as Posting Groups and Dimensions.
2. What is the basis of the audit trail in Microsoft Dynamics NAV 2009?
( ) Entry No.
( ) Reason Codes
( ) Source Codes
( ) Register No.
3. Where are posting restrictions set in Microsoft Dynamics NAV 2009? (Select
all that apply)
( ) General Ledger Setup window
( ) Database or Windows Login window
( ) User Security window
( ) User Setup window
4. There are two types of dimensions specified in the General Ledger Setup
Task Page. What are they? (Select all that apply)
( ) Department Dimensions
( ) Shortcut Dimensions
( ) Global Dimensions
( ) Project Dimensions
1.
2.
3.
Solutions
General Ledger Setup
Test Your Knowledge: General Ledger Setup Task Page
The following are characteristics of the General Ledger Setup window. Match the
characteristic to the elements on General Ledger Setup window.
Trail Codes
Test Your Knowledge: Trail Codes
1. Source Codes and Reason Codes are important parts of the audit
trail.
5. To modify the default Source Codes used, changes are made to the
Source Code Setup window.
2. What is the basis of the audit trail in Microsoft Dynamics NAV 2009?
( ) Entry No.
( ) Reason Codes
(•) Source Codes
( ) Register No.
3. Where are posting restrictions set in Microsoft Dynamics NAV 2009? (Select
all that apply)
(√) General Ledger Setup window
( ) Database or Windows Login window
( ) User Security window
(√) User Setup window
4. There are two types of dimensions specified in the General Ledger Setup
Task Page. What are they? (Select all that apply)
( ) Department Dimensions
(√) Shortcut Dimensions
(√) Global Dimensions
( ) Project Dimensions