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Introduction
A general ledger is a formal ledger that contains a companys accounting records in Microsoft Dynamics AX 2009, and includes the financial accounts and statements. Use the General Ledger to set up currencies and exchange rates. Microsoft Dynamics AX 2009 offers extensive functionality with multicurrency handling so you can record transactions in various currencies and report in parallel currencies. The General Ledger Setup course explains how to work with an infinite number of dimensions with various modules in Microsoft Dynamics AX 2009. You can use dimension focuses to track profits, cost centers, and other important financial information. The General Ledger Setup course describes the various components of an allocation rule and the purpose of each allocation method.
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NOTE: Default currencies can be set up on many forms in Microsoft Dynamics AX 2009, for example, on vendors, customers, or journal names.
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NOTE: In the Exchange rates form, the exchange rate for the company currency is changed automatically according to the Express exchange rate specified in the General Ledger parameters form.
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NOTE: The value in the General round-off field affects all values in all modules.
NOTE: To print the Currency report, which lists all company currencies and related exchange rates, click General Ledger, click Reports, click Base Data, and then click Currency.
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Challenge Yourself!
Set up the South African Rand (ZAR) as a currency and specify the posting accounts and rounding options. Set up the exchange rate. Make ZAR available for currency conversion. Print a copy of the currency rates that are set up in the system.
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Next set up the exchange rate. Every currency requires one exchange rate entry with a blank date. 1. On the Exchange rate form, click in the Exchange rate field on the line. 2. In the Exchange rate field, enter 12.35. 3. Press CTRL+N to create a new exchange rate. 4. In the Start Date field, click the calendar icon. 5. Select 04/01/08. 6. In the Exchange rate field, enter 12.35 Then, set up ZAR for currency conversion. 1. Click the Currency converter tab. 2. Select the Conversion check box. Finally, print a report for the Controller with the exchange rates. 1. Click the Print exchange rates button to open the Exchange rates form. 2. Click OK to print the Exchange rates report.
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Both fiscal year and periods can be set up by the following measurements of time: Years Months Days
Each period can be: Closed completely or stopped to block transaction postings Set to enable selected users to continue an update of one or more modules
The periods and fiscal year feature is very useful for the preparation and reconciliation of periodic and yearly accounts.
NOTE: Microsoft Dynamics AX 2009 posts transactions according to dates and not according to periods. Accounting periods are used for reporting. Closing of accounting periods lets the user close the sub-ledger to make sure that no additional transactions are recorded.
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Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
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Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
The following information is displayed in the fields of the Periods form: Start - This field specifies the beginning date of the period. Period code - This field is specified automatically by the system based on the setup of periods. The possible values are: o o o Opening - Opening is the period used by the system to open transactions from the year-end closing routine. Normal - Normal is the period used to enter transactions. Closing - Closing is the period used to enter year-end close specific transactions.
End - This indicates the end date of the current period. Status - The four available statuses include: o o o o Stopped - The default period code is Closing. Open - The default period code is Normal. The periods must be set to open to enter transactions. Closed - The default period code is Opening. Year closed - This field is used to close the fiscal year.
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3. In the Module user group area, specify the user group that can make changes, when the module status is set to User group. For example, after a period is stopped, limit access to the Ledger to only the user group that makes closing entries. This ensures no new entries are made during the financial closing process. You can select one group of users to enter the last postings in the old period and select other groups to continue working only in the new period.
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Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
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Challenge Yourself!
Create the fiscal year for 2011, which begins on July 1, 2010.
Step by Step
1. Click General ledger, click Setup, click Periods, and then click Periods. 2. Click the Create new fiscal year button. 3. In the Enter start of fiscal year field, enter 7/1/2010. 4. In the Enter close of fiscal year field, enter 6/30/2011. 5. In the Desired length of period field, enter 1. 6. In the Unit field, click the arrow to select Months. 7. Click OK to create the year. The fiscal year for 2011 is added to the Periods form.
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Date Intervals
Create and manage date intervals that can be used in financial statements and reports. Date intervals allow you to create dynamic dates. When you use date intervals, you can set up predefined periods when you run financial statements. Date intervals can also be used when setting up an allocation rule.
Scenario
Ken, the Controller at Contoso Entertainment USA (CEU), runs a dimension statement every month. Instead of entering the dates every time he runs the report, he selects a date interval. The date interval automatically fills in the start date and the end date. Therefore, Ken does not have to specify the start date and the end date when he runs the dimension statement.
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NOTE: The Calculation date field is equal to the system date. By changing the system date, (Microsoft Dynamics AX > Tools > Session Date), all the values in the Date calculation area of the form will be changed accordingly.
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NOTE: If the +/- field and Days, Months, Years or periods field are empty, the After adjustments field equals the starting point value.
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Reason Codes
Reason codes are standardized codes that can be used in various transaction types or changes to field values to provide background data about the transaction. For example, auditors or managers frequently want to see reasons recorded for various transactions.
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NOTE: For more information about using reason codes with Fixed assets, refer to the Fixed assets collection.
Follow these steps to create a General ledger reason code. 1. To access the Reasons form, click General Ledger, click Setup, and then click Ledger reasons. 2. Press CTRL+N to create a new reason. 3. Enter a unique Reason Code as identification.
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NOTE: Use the Reasons form from Basic to create reason codes for many financial modules. You also can open the Reasons form from a specific module. The Reasons form in Basic provides extra fields to assign the reason code to any of five account types, but in each of the other modules, reason codes by default are assigned to the account type that is related to that module. For example, if the Reasons form opens from Accounts payable, the Vendor check box is selected and the reason codes created can be used only with vendor transactions unless the Vendor check box is unmarked.
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Dimensions
Dimensions have the following characteristics: Provide a more detailed description of a transaction. Simplify the accounting process when you enable detailed analysis without the creation of a detailed Chart of Accounts. Resemble separate accounts for: o o o Departments Cost centers Purposes
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Enable you to view the data file from different perspectives to improve the effectiveness in tracking figures across accounts. Can be used throughout the system. Add dimensions to base data such as: o o o Ledger accounts Customers Vendors
NOTE: Use the Financial Dimension Wizard to create extra dimensions in Microsoft DynamicsAX 2009. It requires a MorphX license to add extra dimensions in the application. To access the wizard, click Microsoft Dynamics AX, click Tools, click Development Tools, click Wizards, and then click Financial Dimension Wizard. The number of financial dimensions is finite, however, the number of dimension values within a financial dimension is infinite.
NOTE: These dimensions are financial dimensions. Microsoft Dynamics AX 2009 also has Inventory dimensions, which are different from financial dimensions.
Scenario
Ken, the Controller at Contoso Entertainment USA, must analyze company figures from a perspective other than only ledger accounts. Ken wants to make reports and sales statistics inquiries based on cost centers and departments. Therefore, he decides to set up dimensions as a supplement to voucher and account numbers.
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After dimension values are set up, you can assign them to the following: Ledger accounts General ledger transactions Accounts Receivable transactions Customers Accounts Payable transactions Vendors
For example, in the Customers form on the Dimensions tab, set up department and cost center dimensions for customer 4037. When a sales order is created for customer 4037, the defined dimensions are populated on the sales order automatically, but the values can be changed.
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Challenge Yourself!
Help Phyllis enter the necessary dimension validation options for account 605110.
Step by Step
1. Click General ledger, and then click Chart of Account Details. 2. Select account 605110, Cleaning expense, and then click the Dimension tab. 3. In the Cost center field, click the arrow to select 0101, Building maintenance. 4. In the Validate cost center field, click the arrow to select Fixed.
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Dimension Focus
Dimension focuses make it easy for you to create financial reports that are based on dimensions and ledger accounts transactions. They also define the order in which dimensions and ledger accounts should be printed. A dimension focus combines dimensions and ledger accounts. For example, one focus can consists of: Ledger accounts Department Purpose
For example, you can use the dimension focuses to view balance statements based on multiple dimensions and ledger accounts.
Scenario
Sara, the Chief Financial Officer (CFO) at Contoso Entertainment USA (CEU), must: Analyze financial transactions based on dimensions and ledger accounts combined. For example, Sara views sales revenue for each department or country. Determine how financial transactions should be organized when users run reports and make inquiries.
To view the sales revenue for all departments in CEU, Sara decides to create a dimension focus that consists of ledger accounts and departments dimensions.
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Lab 1.4 - Create a Dimension Focus and Print the Dimension Statement
Scenario In June 2008, Sara, the Chief Financial Officer (CFO) at Contoso Entertainment USA (CEU), advised staff that all entries made to income statement accounts must include a department dimension.
Challenge Yourself!
Run a report to verify that entries for the month of June include the department dimension.
Step by Step
Follow these steps to create a new Dimension focus for Account-Department. 1. To access the Dimension focuses form, click General ledger, click Setup, click Financial statement, and then click Dimension focuses. 2. Press CTRL+N to create a new dimension focus. 3. In the Set field, enter Acc-Dept. 4. In the Description field, enter Account Department. 5. Click the Dimension tab. 6. Drag the Ledger account field from Available dimensions to Selected dimensions. 7. Drag the Department field from Available dimensions to Selected dimensions. 8. Click the Overview tab. 9. Press CTRL+S to save the record. Microsoft Dynamics AX 2009 displays a confirmation message. 10. Click the Yes button. 11. Close the Dimension focuses form. Next, follow these steps to run the Dimension statement report. 1. Click General ledger, click Reports, click Transactions, and then click Dimension statement. 2. In the Main focus field use the arrow to select Acc-Dept. 3. In the From date field, enter 6/1/2008.
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Generated Allocations
Allocation is the process of distributing monetary amounts to one or more accounts or account and dimension combinations. New to Microsoft Dynamics AX 2009 is the ability to use predefined allocation rules to perform generated allocations. Generated allocation is the distribution of posted or fixed amounts to combinations of destination accounts and dimensions at any time, which generate new journal entries. Allocation rules have numerous calculation methods, including: Basis Fixed percentage Fixed weight Spread even
Microsoft Dynamics AX 2009 also provides the ability to allocate across multiple companies, also known as Intercompany allocations.
Scenario
Phyllis, the Accounting Manager at Contoso Entertainment USA (CEU), creates a new Intercompany allocation rule for Electric Utilities to distribute overhead utility expense to each department based on fixed percentages. The rule is for the new fiscal year that begins on January 1, 2008. Because Phyllis does not want the new rule to be used until then, she enters 01/01/2008 as the start date for the rule. Because CEU typically reviews its allocation rules every fiscal year, Phyllis enters 12/31/2008 as the end date for the rule. Phyllis enters detailed notes about the basis and reasons for the allocation rule. Phyllis then selects the Microsoft Word template that was implemented when CEU experienced a SOX review to document the allocation rule completely. When Phyllis has finished writing the document, she attaches a copy of it to the rule. Anyone who wants additional information about the rule can open the document or print an Allocation rules definition report.
Allocation Rules
Allocation Rules allow you to define the results you want in the allocation business process. Each allocation rule has four primary components: The General settings dictate which fields are available in the rule tabs. The Source data for the allocation is also known as the allocation pool.
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Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
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Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6. In the Data source field, select the source of the amount to allocate: o Ledger o Fixed value 7. If Fixed value is selected in the Data source field, enter a value in the Fixed value field. 8. If Ledger is selected in the Data source field, select an arithmetic operation to apply to the source value in the Mathematical operation field. 9. If Ledger is selected in the Data source field and either Multiply or Divide is selected in the Mathematical operation field, enter the Amount by which to multiply or divide the source value. 10. If Ledger is selected in the Data source field, select a date interval to determine the account periods used for the allocation rule source. If a date interval is not selected, all balanced for the chosen account or account-dimension combination will be selected for source allocation. 11. Select an allocation Journal name. The Description displays the allocation journal description.
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Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
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Scenario
Phyllis runs an allocation proposal without posting it to review the allocation results and the detailed distributions that will be created based on the allocation rule used. If the results are accurate, Phyllis posts the entry.
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NOTE: The Date last run field displays the last date when a user processed an allocation rule and created distribution lines.
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Summary
The General ledger setup course describes the initial setup to start working with Microsoft Dynamics AX 2009 financials. The course provides basic introductions to set up: Currencies and exchange rates Periods, fiscal year and date intervals Dimensions and dimension focuses Generated allocations
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Solutions
Currency and Exchange Rate Setup
Test Your Knowledge
Task: Simon, the System Implementer at Contoso Entertainment USA (CEU), is helping Phyllis, the Accounting Manager, with the implementation of Microsoft Dynamics AX 2009. CEU conducts business primarily in the United States and also in Canada. As of April 1, 2008, 1 Canadian Dollar (CAD) equals 0.97 US Dollars (USD). Help Phyllis and Simon determine the correct steps to set up multicurrency for CEU. Step 4 : Create the CAD Currency in the Exchange rates form Step 5 : Set the exchange rate value for CAD as of no date to 0.97 Step 3 : In the General ledger parameters form, enter 1 in the Express exchange rate field Step 2 : In the Company information form, select USD in the Currency field Step 6 : Set the exchange rate value for CAD as of April 1, 2008 to 0.97 Step 1 : Create the USD Currency in the Exchange rates form What effect does the value in the General round-off field have on the values in Microsoft Dynamics AX 2009? MODEL ANSWER - The value is used to round all amounts in all modules. When you change the display currency, it affects all users. ( ) True () False
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Dimensions
Test Your Knowledge
Which of the following is one of the default dimension settings? (Select all that apply.) () Department ( ) Vendor () Cost center () Purpose
Generated Allocations
Test Your Knowledge
What are the parts of an allocation rule? (Select all that apply.) () General () Source () Destination () Offset Which allocation method defines how and in what proportion the source amounts are distributed to the various destination lines, by referring to balances in other account-dimensions? () Basis ( ) Fixed percentage ( ) Fixed weight ( ) Spread even
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