Microsoft Dynamics® GP

General Ledger
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Publication date September 2012

Contents
Introduction ................................................................................................................................................. 2
What’s in this manual...................................................................................................................................2
Symbols and conventions ............................................................................................................................3
Resources available from the Help menu..................................................................................................4
Send us your documentation comments ...................................................................................................5

Part 1: Setup ............................................................................................................................................... 8

Chapter 1: General Ledger setup ........................................................................................... 9
Before you begin setting up General Ledger ............................................................................................9
Setting up default entries and preferences................................................................................................9
Understanding net change and period balance......................................................................................12
Setting up transaction matching...............................................................................................................13

Chapter 2: Understanding accounts ................................................................................ 15

Posting, unit, and allocation accounts .....................................................................................................15
Understanding account categories ...........................................................................................................15
Maintaining account categories ................................................................................................................17
Understanding account aliases .................................................................................................................18
Using an account alias during data entry ...............................................................................................19
User-defined fields for accounts ...............................................................................................................19

Chapter 3: Posting accounts ................................................................................................... 21

Setting up a posting account .....................................................................................................................21
Deleting or inactivating a posting account .............................................................................................23

Chapter 4: Unit accounts ........................................................................................................... 25

About unit accounts ...................................................................................................................................25
Setting up a unit account ...........................................................................................................................25
Posting to a unit account............................................................................................................................26
Deleting or inactivating a unit account....................................................................................................26

Chapter 5: Fixed allocation accounts ............................................................................. 29

Setting up a fixed allocation account .......................................................................................................29
Deleting or inactivating a fixed allocation account................................................................................30

Chapter 6: Variable allocation accounts ...................................................................... 33

Understanding variable allocation accounts ..........................................................................................33
Setting up a variable allocation account..................................................................................................33
Deleting or inactivating a variable allocation account ..........................................................................35

Chapter 7: Retained earnings accounts........................................................................ 37

Understanding single retained earnings accounts.................................................................................37
Setting up a single retained earnings account ........................................................................................37
Understanding divisional retained earnings accounts..........................................................................38
Setting up divisional retained earnings accounts ..................................................................................39

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Chapter 8: Chart of accounts ................................................................................................. 41

Setting up an account segment definition...............................................................................................41
Chart of accounts modifications ...............................................................................................................41
Modifying ranges of accounts...................................................................................................................43

Chapter 9: Beginning balances and history .............................................................. 45

Understanding beginning balances and history ....................................................................................45
Entering beginning balances for a new fiscal year.................................................................................45
Entering beginning balances in the middle of a fiscal year ..................................................................48
Entering account history............................................................................................................................50

Chapter 10: Quick journal transactions setup ........................................................ 53

Understanding quick journal transactions..............................................................................................53
Setting up a quick journal..........................................................................................................................53
Deleting a quick journal.............................................................................................................................54

Chapter 11: Revenue/Expense Deferrals setup ....................................................... 57

Revenue/Expense Deferrals overview....................................................................................................57
Deferral posting methods ..........................................................................................................................57
Balance Sheet posting example .................................................................................................................58
Profit and Loss posting example ..............................................................................................................58
Setting up revenue/expense deferrals.....................................................................................................59
Selecting deferral warning options ..........................................................................................................61
Setting up a deferral profile ......................................................................................................................61
Setting access to a deferral profile ............................................................................................................63

Part 2: Budgets .................................................................................................................................... 66

Chapter 12: Budget overview ................................................................................................. 67
Viewing a list of existing budgets.............................................................................................................67
Creating a new budget ...............................................................................................................................67
Opening an existing budget ......................................................................................................................68
Deleting a budget........................................................................................................................................68

Chapter 13: Setting up budgets in Microsoft Excel........................................... 69

Budget calculation methods ......................................................................................................................69
Account types for budgets.........................................................................................................................69
Creating a budget with the budget wizard .............................................................................................70
Format requirements for budgets in Microsoft Excel ............................................................................75

Chapter 14: Setting up budgets in Microsoft Dynamics GP...................... 77

Budget calculation methods ......................................................................................................................77
Calculating budgets that overlap fiscal years.........................................................................................78
Creating a budget for a range of accounts ..............................................................................................79
Deleting a budget........................................................................................................................................81
Creating a single-account budget .............................................................................................................82
Entering budget transactions ....................................................................................................................84
Combining budgets in Microsoft Dynamics GP.....................................................................................85

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Chapter 15: Exporting and importing budgets ...................................................... 87

Exporting a budget to Microsoft Excel ....................................................................................................87
Preparing a budget for import from Microsoft Excel ............................................................................88
Importing a budget from Microsoft Excel ...............................................................................................89

Part 3: Transactions ...................................................................................................................... 94

Chapter 16: Multicurrency transactions ...................................................................... 95
Viewing multiple currencies .....................................................................................................................95
Exchange rate and document date ...........................................................................................................95
Multicurrency account distributions........................................................................................................96

Chapter 17: Batches ........................................................................................................................ 97

Creating a batch ..........................................................................................................................................97
General Ledger batch approval workflow ..............................................................................................98
Modifying or deleting a batch...................................................................................................................98

Chapter 18: Standard and reversing transactions ........................................... 101

Entering a standard or reversing transaction .......................................................................................101
Voiding or deleting a saved standard or reversing transaction .........................................................102
Understanding Value-Added Taxes .......................................................................................................103
Calculating and distributing tax.............................................................................................................103

Chapter 19: Clearing transactions .................................................................................. 107

Understanding clearing transactions .....................................................................................................107
Entering a clearing transaction ...............................................................................................................107
Voiding or deleting a saved clearing transaction .................................................................................108

Chapter 20: Quick journal transactions...................................................................... 111

Understanding quick journal transactions............................................................................................ 111
Entering a quick journal transaction ...................................................................................................... 111
Voiding or deleting a saved quick journal transaction........................................................................ 113

Chapter 21: Transaction deferrals ................................................................................... 115

Deferring a transaction distribution....................................................................................................... 115
Deferring a transaction distribution using a profile ............................................................................ 117
Entering a General Ledger deferral transaction ................................................................................... 119
Entering a General Ledger deferral transaction using a profile.........................................................120
Creating a retroactive deferral transaction............................................................................................121
Posting deferral transactions...................................................................................................................122
Voiding a deferral transaction.................................................................................................................123

Chapter 22: Posting ...................................................................................................................... 125

Posting overview ......................................................................................................................................125
Transaction-level posting.........................................................................................................................125
Posting an individual batch.....................................................................................................................126
Posting batches using the action pane ...................................................................................................127
Posting to a historical year ......................................................................................................................127

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Chapter 23: Correcting transactions ............................................................................ 129

Correcting an unposted transaction.......................................................................................................129
Backing out a posted transaction............................................................................................................129
Backing out and correcting a posted transaction .................................................................................131
Copying a posted transaction .................................................................................................................132

Chapter 24: Matching transactions ............................................................................... 135

Linking transaction distributions ...........................................................................................................135
Modifying transaction distribution links ..............................................................................................136
Creating a matched transaction group ..................................................................................................136

Part 4: Inquiries............................................................................................................................... 140

Chapter 25: Account inquiries ........................................................................................... 141
Viewing multiple currencies ...................................................................................................................141
About reporting currency ........................................................................................................................141
Viewing a summarized account balance for an open fiscal year .......................................................142
Viewing a summarized account balance for a historical year ............................................................143
Viewing changes to an account balance ................................................................................................144

Chapter 26: Transaction inquiries ................................................................................... 145

Viewing budget transaction and history summary information .......................................................145
Viewing transactions posted to an open year.......................................................................................146
Viewing transactions posted to a specific account in a historical year .............................................147
Viewing posted transactions during an open fiscal year ....................................................................148
Viewing deferral transactions .................................................................................................................149

Chapter 27: Transaction matching inquiries ......................................................... 151

Viewing transaction distribution links by number ..............................................................................151
Viewing transaction distribution links by account ..............................................................................151
Viewing matched transactions by group...............................................................................................152

Chapter 28: Budget inquiries ............................................................................................... 155

Viewing budget summary information .................................................................................................155
Viewing budgeted versus actual expenditures ....................................................................................155

Chapter 29: Account rollup inquiries ........................................................................... 157

Account rollup inquiry overview ...........................................................................................................157
Creating an account rollup inquiry option ...........................................................................................157
Setting up a calculated column...............................................................................................................159
Modifying an account rollup inquiry option ........................................................................................159
Viewing an account rollup inquiry.........................................................................................................160

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Part 5: Reports ................................................................................................................................. 162

Chapter 30: Financial statement reports.................................................................. 163
Understanding financial statements .....................................................................................................163
Types of financial statements ..................................................................................................................164
Setting up a quick financial statement...................................................................................................164
Printing financial statements...................................................................................................................166

Chapter 31: General Ledger reports ............................................................................. 169

General Ledger report summary ............................................................................................................169
Specifying a General Ledger report option...........................................................................................171
General Ledger Microsoft SQL Server® Reporting Services reports ................................................172

Part 6: Utilities and routines ......................................................................................... 174

Chapter 32: Checklists .............................................................................................................. 175
Using a General Ledger checklist ...........................................................................................................175
Adding or modifying a checklist item ...................................................................................................176

Chapter 33: Period and year-end routines ............................................................... 177

Reconciling to General Ledger................................................................................................................177
Consolidating a period.............................................................................................................................178
Closing a period ........................................................................................................................................180
Understanding closing a year ................................................................................................................181
Preparing to close a year..........................................................................................................................182
Closing a fiscal year ..................................................................................................................................183
Printing a VAT Return ..............................................................................................................................185

Chapter 34: Account utilities .............................................................................................. 187

Reconciling financial data........................................................................................................................187
Removing or printing history .................................................................................................................188
Archiving matched transactions.............................................................................................................190
Checking links for deferral records ........................................................................................................190

Glossary ..................................................................................................................................................... 191

Index ............................................................................................................................................................... 195

GENERAL LEDGER v
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INTRODUCTION
Introduction
You can use General Ledger to enter a chart of accounts and post beginning
balances. You can set up budgets in Microsoft Dynamics® GP or use Microsoft®
Excel® to set them up. You can export budgets from Microsoft Dynamics GP to
Excel, modify them, or distribute worksheets to budget managers for review and
input, then import the modified budgets back into Microsoft Dynamics GP. If you
use a predefined chart of accounts, you can quickly print financial statements or
modify them using Advanced Financial Analysis or Management Reporter for
Microsoft Dynamics ERP.

You also can use General Ledger to complete the following tasks:

• Enter and post standard or correcting transactions

• Enter unit accounts that capture non-financial data, and fixed or variable
allocation accounts that allow you to efficiently distribute amounts among
multiple accounts

• Set posting options that allow you to post transactions from subsidiary ledgers
to General Ledger, where can review and them and make correcting entries, if
necessary, or post them through General Ledger in a single step

• Void or delete unposted transactions easily, back out or reverse posted

transactions, and post corrected entries—all with a complete, clear audit trail

• Bring greater efficiency to recurring transactions by defining quick journal

transactions that can be posted repeatedly with minimal changes

• Filter account views based on access granted for accounts, increasing security
and eliminating errors caused when entries are made to inappropriate accounts

If you’re using Intercompany Processing, you post transactions across companies

and print consolidated financial statements. For more information, see the
Intercompany Processing documentation.

If you are using Analytical Accounting, you can set up dimension codes and
account classes that provide greater flexibility in analyzing transaction data. For
more information, see the Analytical Accounting documentation.

This introduction is divided into the following sections:

• What’s in this manual

• Symbols and conventions
• Resources available from the Help menu
• Send us your documentation comments

What’s in this manual

This manual is designed to give you an understanding of how to use the features of
General Ledger, and how it integrates with the Microsoft Dynamics GP system.

To make best use of General Ledger, you should be familiar with systemwide
features described in the System User’s Guide, the System Setup Guide, and the
System Administrator’s Guide.

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 IN T RO D U C T IO N

Some features described in the documentation are optional and can be purchased
through your Microsoft partner.

To view information about the release of Microsoft Dynamics GP that you’re using
and which modules or features you are registered to use, choose Help >> About
Microsoft Dynamics GP.

The manual is divided into the following parts:

• Part 1, Setup, describes how to set up General Ledger so that it meets the needs
of your business and works with other modules that you use.

• Part 2, Budgets, describes how to create a new budget in Microsoft Dynamics

GP or in Microsoft Excel.

• Part 3, Transactions, provides procedures for completing General Ledger

accounting tasks.

• Part 4, Inquiries, shows how to view both current and historical account,
budget, and transaction information.

• Part 5, Reports, describes how to use reports to analyze transaction and account
information, and how to display the information on a computer screen or on a
printed report, or to save it to a file.

• Part 6, Utilities and routines, provides the procedures that you need to
maintain your data in General Ledger. Information about creating and
modifying checklists for General Ledger routines for the end of a month,
quarter, or year also are included.

Symbols and conventions

For definitions of unfamiliar terms, see the glossary in the manual or refer to the
glossary in Help.

Symbol Description
The light bulb symbol indicates helpful tips, shortcuts and
suggestions.

The warning symbol indicates situations you should be especially

aware of when completing tasks.

The multicurrency symbol points out features or procedures that

apply if you’re using Multicurrency Management.

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This manual uses the following conventions to refer to sections, navigation and
other information.

Convention Description
Creating a batch Italicized type indicates the name of a section or procedure.
File >> Print or File > The (>>) or (>) symbol indicates a sequence of actions, such as
Print selecting items from a menu or toolbar, or pressing buttons in a
window. This example directs you to go to the File menu and choose
Print.
TAB or ENTER All capital letters indicate a key or a key sequence.

Resources available from the Help menu

The Microsoft Dynamics GP Help menu gives you access to user assistance
resources on your computer, as well as on the Web.

Contents
Opens the Help file for the active Microsoft Dynamics GP component, and displays
the main “contents” topic. To browse a more detailed table of contents, click the
Contents tab above the Help navigation pane. Items in the contents topic and tab
are arranged by module. The “Additional Help files” topic has links to separate
Help files that describe additional components.

To find information in Help by using the index or full-text search, click the
appropriate tab above the navigation pane, and type the keyword to find.

To save the link to a topic in the Help, select a topic and then select the Favorites tab.
Click Add.

Index
Opens the Help file for the active Microsoft Dynamics GP component, with the
Index tab active. To find information about a window that’s not currently displayed,
type the name of the window, and click Display.

About this window

Displays overview information about the current window. To view related topics
and descriptions of the fields, buttons, and menus for the window, choose the
appropriate link in the topic. You also can press F1 to display Help about the current
window.

Lookup
Opens a lookup window, if a window that you are viewing has a lookup window.
For example, if the Checkbook Maintenance window is open, you can choose this
item to open the Checkbooks lookup window.

Show Required Fields

Highlights fields that are required to have entries. Required fields must contain
information before you can save the record and close the window. You can change
the font color and style used to highlight required fields. On the Microsoft
Dynamics GP menu, choose User Preferences, and then choose Display.

Printable Manuals
Displays a list of manuals in Adobe Acrobat .pdf format, which you can print or
view.

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 IN T RO D U C T IO N

What’s New
Provides information about enhancements that were added to Microsoft Dynamics
GP since the last major release.

Microsoft Dynamics GP Online

Opens a Web page that provides links to a variety of Web-based user assistance
resources. Access to some items requires registration for a paid support plan.

Customer Feedback Options

Provides information about how you can join the Customer Experience
Improvement Program to improve the quality, reliability, and performance of
Microsoft software and services.

Send us your documentation comments

We welcome comments regarding the usefulness of the Microsoft Dynamics GP
documentation. If you have specific suggestions or find any errors in this manual,
send your comments by e-mail to the following address: bizdoc@microsoft.com.

To send comments about specific topics from within Help, click the Documentation
Feedback link, which is located at the bottom of each Help topic.

Note: By offering any suggestions to Microsoft, you give Microsoft full permission to use
them freely.

GENERAL LEDGER 5
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PART 1: SETUP
 Part 1: Setup
Use the following information to set up General Ledger. Setup procedures generally
need to be completed once, but you can refer to the information at other times for
instructions on modifying or viewing existing entries.

The following information is discussed:

• Chapter 1, “General Ledger setup,” describes how to use the setup routine to
correctly set up General Ledger.

• Chapter 2, “Understanding accounts,” describes the types of accounts that

make up your chart of accounts.

• Chapter 3, “Posting accounts,” describes how to set up posting accounts to

track your assets, liabilities, revenue, expenses, and equity.

• Chapter 4, “Unit accounts,” describes setting up accounts to track nonfinancial

quantities.

• Chapter 5, “Fixed allocation accounts,” describes setting up accounts to

distribute fixed amounts among several accounts.

• Chapter 6, “Variable allocation accounts,” describes setting up accounts to

distribute variable amounts among several accounts.

• Chapter 7, “Retained earnings accounts,” describes how to set up retained

earnings accounts to use during the year-end closing process.

• Chapter 8, “Chart of accounts,” contains information about setting up a chart of

accounts.

• Chapter 9, “Beginning balances and history,” describes how to enter beginning

balances and history.

• Chapter 10, “Quick journal transactions setup,” describes how to set up quick
journals for time-saving journal entry.

• Chapter 11, “Revenue/Expense Deferrals setup,” provides instructions for

setting up Revenue/Expense Deferrals.

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Chapter 1: General Ledger setup
One way to set up General Ledger is to follow the setup routine provided. It guides
you through the procedures you need to complete, in the order you need to
complete them.

This information is divided into the following sections:

• Before you begin setting up General Ledger

• Setting up default entries and preferences
• Understanding net change and period balance
• Setting up transaction matching

Before you begin setting up General Ledger

Before setting up General Ledger, be sure you’ve set up all of the following for the
company:

• Account format
• Fiscal periods
• Posting
• Source documents
• Audit trail codes

For more information about setting up your system and company, refer to the
System Setup instructions (Help >> Contents >> select Setting Up the System).

Setting up default entries and preferences

Use the General Ledger Setup window to specify the next journal entry number,
indicate how account balances will appear in the General Ledger Account
Maintenance and Transaction Entry windows, as well as other Microsoft Dynamics
GP windows, and select the type of historical information to save. You also can
restrict or allow specific actions, such as posting to historical years, deleting saved
transactions.

The General Ledger Setup window also allows you to enable base, local, and
International Financial Reporting Standards (IFRS) ledgers. After this process, users
who are entering General Ledger transactions can assign the transactions to these
specific reporting ledgers.

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To set up default entries and preferences:

1. Open the General Ledger Setup window.
(Financial >> Setup >> Financial >> General Ledger)

2. Enter the next journal entry and budget journal entry numbers. A new journal
entry number is assigned each time you save an entry in the Transaction Entry,
Clearing Entry or Quick Journal Entry windows. A new budget journal entry is
assigned each time you save an entry in the Budget Transaction Entry window.

The journal entry and budget journal entry number appears on reports as part
of your audit trail. You can use these numbers to trace transactions to their
original point of entry.

3. Choose whether to display account balances as net change or period balance

amounts.

The display method you select will appear throughout Microsoft Dynamics GP.
You can change the method in each window where the account balances are
displayed. Refer to Understanding net change and period balance on page 12 for
more information.

4. Skip the retained earnings entries.

You need to enter the chart of accounts before specifying a retained earnings
account. Later, after you’ve set up posting and fixed allocation accounts, you
can refer to Chapter 7, “Retained earnings accounts,” for more information
about this entry.

5. Choose whether to keep account history, transaction history, budget transaction

history, or all three.

Account history provides account summary balances only. Transaction history

includes all transactions posted to an account. Budget transaction history
retains the history of budget adjustments. When budget transactions are posted,

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they move directly to the history table because there is no open table for these
transactions. Thus, you must choose an option here if you want to do inquiries
on budget transactions after they have been posted.

You can keep history for an unlimited number of years. This information is
updated during the year-end closing process when current-year balances
become previous-year balances.

If you choose to keep history, you can print historical information on financial
statements, comparing previous-year amounts to current-year amounts. You
also can calculate budgets based on information from a previous year.

6. Mark whether to enable users to post to history. If this checkbox is marked, you
can post transactions to the most recent history year. For example, you can post
audit adjustments after you have closed the year.

7. Mark the Deletion of Saved Transactions option to enable users to delete

transactions that are saved, but not posted. If you unmark this option, saved
transactions must be voided instead of deleted.

8. Mark the Voiding/Correcting of Subsidiary Transactions option to enable saved

transactions originating in other modules to be voided or posted transactions
originating in other modules to be backed out or backed out and corrected.
Voiding saved transactions originating in other modules will not update the
transactions in those modules. You must void or delete the originating
transactions using the originating modules.

9. Mark the Back Out of Intercompany Transactions option to enable

intercompany transactions to be backed out.

10. Mark whether to update the accelerator information.

Mark the Update Accelerator Information option if you want to update row and
column information on financial statements each time you modify the layout of
an existing financial report using Advanced Financial Analysis.

If you don’t use account ranges and wildcard characters in your financial statements,
you don’t need to mark this option. For more information about financial statements,
refer to Chapter 30, “Financial statement reports.”

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11. Mark whether to allow reporting ledgers.

Allowing reporting ledgers is a permanent selection after you save your changes by
clicking OK. You cannot unmark Allow Reporting Ledgers later.

When you mark this option:

• The reporting ledger types Base, IFRS, and Local become available for the
selected account. Later, transactions for this account can be assigned to one
of these reporting ledger types. For more information on assigning a
transaction to a reporting ledger type, see Chapter 18, “Standard and
reversing transactions.”

• You can change the description for each reporting ledger type.

• When you mark this option, the Account Balance for Subsidiary Windows
list becomes active. This list lets you decide which reporting ledger types
are used to calculate account balances that appear in Microsoft Dynamics
GP modules other than General Ledger.

If you do not mark this option, all transactions for the selected account are
assigned to the Base ledger.

Definitions of the reporting ledger types:

• Base represents the base ledger, where the transactions can be applied for
both local and IFRS accounting. All transactions originating sub-ledger
modules are applied to the base ledger by default.

• IFRS represents the IFRS ledger, where the transactions can be applied for
IFRS accounting.

• Local represents the local ledger, where the transactions can be applied for
local accounting.

The local and IFRS ledger types allow you to enter similar transactions and
assign them to a specific reporting ledger, which can vary because the accounts
or amounts might differ on the accounting rules that are applied when
determining the accounting transaction.

12. In the Account Balance for Subsidiary Windows list, choose the reporting
ledger types that you want to use to calculate balances for accounts that appear
outside of General Ledger.

Review the setup options you’ve entered on the Setup List report. To print the
list, choose File >> Print or the printer icon button while the General Ledger
Setup window is displayed.

Understanding net change and period balance

You can view the status of your accounts by net change or in a period-by-period
format. Some windows display both net change and period balances.

If you choose net change, the amount displayed is the difference between each
period and the preceding period, whether positive or negative.

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If you choose period balances, the actual balance for each period is displayed. Refer
to the table for an example of how the same information is displayed, depending on
the display setting you choose.

Period Net change Period balance

Period 1 $100.00 $100.00
Period 2 $100.00 $200.00
Period 3 $0.00 $200.00
Period 4 $50.00 $250.00

The display method you choose in the General Ledger Setup window will be used
as the default throughout Microsoft Dynamics GP; however, you can change the
method in each window where account balances are displayed.

Setting up transaction matching

Transaction matching is the process of linking related transaction distributions from
different journal entries. For example, you can link period-end adjusting entries to
the original transactions, or link a set of transactions associated with a project. You
can also create groups of linked transaction distributions. For example, you could
create a group of the links for period-end adjustments to aid in the audit process.

Use the Transaction Matching Setup window to set the options you want to use for
linking transactions, including whether you want to require the transactions you
link to balance, the next number to use for links, and whether you want to enable
links to be deleted.

To set up transaction matching:

1. Open the Transaction Matching Setup window.
(Financial >> Setup >> Financial >> Transaction Matching)

2. Enter the default next link number.

3. Indicate whether you want to require linked distributions to balance.

When you link transaction distributions in the General Ledger Transaction Link
Maintenance window, the credits and debits are totalled and the balance is
displayed. If you mark this option, linked distributions must balance (that is,
total debits must equal total credits) before the link can be saved.

4. Indicate whether you want to require linked distributions to be for a single

account only.

For example, assume you want to be able to link distributions to the accounts
for Finance Charge Income and Interest Income. If you mark this option, you

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won’t be able to establish this link. If you don’t mark this option, you can
establish this link.

5. Indicate whether you want to enable saved links to be deleted. If you mark this
option, you can choose Deletion Password to enter a password that must be
entered before a link can be deleted.

6. Choose OK to save your entries and close the window.

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Chapter 2: Understanding accounts
Your chart of accounts will include several types of accounts. This part of the
documentation describes the different types of accounts and how account
categories are used to group accounts on financial statements.

This information is divided into the following sections:

• Posting, unit, and allocation accounts

• Understanding account categories
• Maintaining account categories
• Understanding account aliases
• Using an account alias during data entry
• User-defined fields for accounts

Posting, unit, and allocation accounts

A chart of accounts can include three types of accounts: posting, unit, and allocation
accounts. Each type can be used to meet different business needs.

Posting accounts Posting accounts are the financial accounts that track assets,
liabilities, revenue, expenses, and equity. Transactions posted to these accounts
appear on financial reports. Examples of posting accounts include Cash, Cost of
Goods Sold, and Accounts Receivable. For more information, see Chapter 3,
“Posting accounts.”

Unit accounts Unit accounts are similar to posting accounts. Like posting
accounts, unit accounts are used in transaction entry. Historical information and
budgets can be maintained for both types of accounts. However, quantities—rather
than amounts—are posted to unit accounts, and unit accounts don’t appear on
financial statements. For more information, see Chapter 4, “Unit accounts.”

Allocation accounts Allocation accounts are used to distribute percentages of a

single transaction among several accounts. Two different types of allocation
accounts are available: fixed and variable. For more information, see Chapter 5,
“Fixed allocation accounts,” and Chapter 6, “Variable allocation accounts.”

Understanding account categories

All posting accounts are assigned to account categories, which are used to group
accounts on financial statements. For example, all accounts assigned to the Cash
category—Petty Cash, Cash-Operating, Cash Payroll—will appear under the Cash
category when financial statements are printed. You also can choose whether to
print descriptions for the first account in the category or print the category
description.

General Ledger includes 48 predefined account categories. The account categories

can be displayed in the Account Category Setup window. The account categories
provided with General Ledger, their type (balance sheet, profit and loss, or
statement of changes) and the financial statements that include each account
category are listed in the following table:

Category Type Appears on:

Cash Balance Sheet Balance Sheet
Statement of Cash Flows

GENERAL LEDGER 15
PA RT 1 S E T U P

Category Type Appears on:

Short-Term Investments Balance Sheet Balance Sheet
Statement of Cash Flows
Accounts Receivable Balance Sheet Balance Sheet
Statement of Cash Flows
Inventory Balance Sheet Balance Sheet
Statement of Cash Flows
Notes Receivable Balance Sheet Balance Sheet
Statement of Cash Flows
Work in Process Balance Sheet Balance Sheet
Statement of Cash Flows
Prepaid Expenses Balance Sheet Balance Sheet
Statement of Cash Flows
Long-Term Investments Balance Sheet Balance Sheet
Statement of Cash Flows
Property, Plant, and Equipment Balance Sheet Balance Sheet
Statement of Cash Flows
Accumulated Depreciation Balance Sheet Balance Sheet
Statement of Cash Flows
Intangible Assets Balance Sheet Balance Sheet
Statement of Cash Flows
Other Assets Balance Sheet Balance Sheet
Statement of Cash Flows
Accounts Payable Balance Sheet Balance Sheet
Statement of Cash Flows
Notes Payable Balance Sheet Balance Sheet
Statement of Cash Flows
Current Maturities of Long- Balance Sheet Balance Sheet
Term Debt Statement of Cash Flows
Taxes Payable Balance Sheet Balance Sheet
Statement of Cash Flows
Interest Payable Balance Sheet Balance Sheet
Statement of Cash Flows
Dividends Payable Balance Sheet Balance Sheet
Statement of Cash Flows
Leases Payable (Current) Balance Sheet Balance Sheet
Statement of Cash Flows
Sinking Fund Payable (Current) Balance Sheet Balance Sheet
Statement of Cash Flows
Other Current Liabilities Balance Sheet Balance Sheet
Statement of Cash Flows
Long-Term Debt Balance Sheet Balance Sheet
Statement of Cash Flows
Common Stock Balance Sheet Balance Sheet
Statement of Cash Flows
Preferred Stock Balance Sheet Balance Sheet
Statement of Cash Flows
Additional Paid-in Capital– Balance Sheet Balance Sheet
Common Statement of Cash Flows
Additional Paid-in Capital– Balance Sheet Balance Sheet
Preferred Statement of Cash Flows

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 C H A P T E R 2 U N D E R S T A N D I N G A C C O U N T S

Category Type Appears on:

Retained Earnings Balance Sheet Balance Sheet
Statement of Cash Flows
Statement of Retained
Earnings
Treasury Stock Balance Sheet Balance Sheet
Statement of Cash Flows
Common Dividends Balance Sheet Balance Sheet
Statement of Cash Flows
Statement of Retained
Earnings
Preferred Dividends Balance Sheet Balance Sheet
Statement of Cash Flows
Statement of Retained
Earnings
Sales Profit and Loss Statement Profit and Loss Statement
Sales Returns and Discounts Profit and Loss Statement Profit and Loss Statement
Cost of Goods Sold Profit and Loss Statement Profit and Loss Statement
Selling Expense Profit and Loss Statement Profit and Loss Statement
Administrative Expense Profit and Loss Statement Profit and Loss Statement
Salaries Expense Profit and Loss Statement Profit and Loss Statement
Other Employee Expenses Profit and Loss Statement Profit and Loss Statement
Interest Expense Profit and Loss Statement Profit and Loss Statement
Tax Expense Profit and Loss Statement Profit and Loss Statement
Depreciation Expense Profit and Loss Statement Profit and Loss Statement
Statement of Cash Flows
Income Tax Expense Profit and Loss Statement Profit and Loss Statement
Other Expenses Profit and Loss Statement Profit and Loss Statement
Other Income Profit and Loss Statement Profit and Loss Statement
Charges Not Using Working Statement of changes Statement of Cash Flows
Capital
Revenues Not Producing Statement of changes Statement of Cash Flows
Working Capital
Gain/Loss on Asset Disposal Statement of changes Statement of Cash Flows
Amortization of Intangible Statement of changes Statement of Cash Flows
Assets
Nonfinancial Accounts Not applicable Nonfinancial accounts (unit
accounts) do not appear on
financial statements.

Maintaining account categories

Account categories are used to group the posting accounts on financial statements.
For example, all accounts in the Cash category—will appear under the Cash
category. The default list includes categories such as Cash, Short-Term Investments
and Notes Receivable.

Use the Account Category Setup window to view and make changes to the
descriptions of the account categories. You can customize any account category by
changing its description, but the financial statement it appears on will not be
changed. In addition, predefined category descriptions cannot be removed.

You can add unlimited account categories if your business has specialized reporting
needs. Additional user-defined categories appear after the predefined categories in

GENERAL LEDGER 17
PA RT 1 S E T U P

the scrolling window and are preceded by an asterisk in the Number column. You
can remove a user-defined category, only if it has no accounts assigned to it.

To revert to the original set of account categories once you've changed them, clear
data from the Account Category Table.

To maintain account categories:

1. Open the Account Category Setup window.
(Financial >> Setup >> Financial >> Category)

2. Rename any predefined categories, if needed.

3. If your business has specialized reporting needs, you can add user-defined
categories by scrolling to the bottom of the list and entering a category
description.

4. You can verify your changes with an Account Category List.

To print an Account Category List, choose File >> Print or the printer icon
button while the Account Category Setup window is displayed.

Understanding account aliases

An account alias is a 20-character “short name” assigned to an account. You can use
an account alias instead of the entire account in any window where you enter or
select accounts. If you’re using a large account structure, aliases provide a quick
method of data entry.

For example, if you’ve set up the Cash Operating account for your main branch as
account 1200-0000-2100-0000-0000, you could assign an alias such as $-CO.

You can set up account aliases in the Account Maintenance, Unit Account
Maintenance, Variable Allocation Maintenance, and Fixed Allocation Maintenance
windows. Using account aliases is optional. You can modify an account alias at any
time using the appropriate account maintenance window.

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 C H A P T E R 2 U N D E R S T A N D I N G A C C O U N T S

Using an account alias during data entry

Use the Account Entry window to enter account aliases during transaction entry.

To use an account alias during data entry:

1. Open the Account Entry window using any of these methods in a transaction
entry window:

• Choose the Account expansion button.

• Press CTRL+A.

• Choose Account Alias from the View menu in any window where you can
enter an account.

The View menu and keyboard shortcut are available only when you’re entering account
aliases in transaction entry windows.

2. Enter or select an alias. As soon as you enter or select an alias, the Account
Entry window closes and the transaction entry window is displayed.

You also can choose an alias using the Accounts lookup window. Account aliases are
displayed below the account they represent in the Accounts window. When you select
an account and then press TAB, the lookup window closes and the account is displayed
in the main window.

3. Continue entering transaction information.

User-defined fields for accounts

General Ledger includes four user-defined fields for tracking additional
information about each account.

For example, to be able to sort groups of accounts, such as Expense-Retail, you

can enter Account Group as the label in the User-Defined 1 field. In the Account
Maintenance window, you’ll see Account Group as the label for the field that
was User-Defined 1, and you can enter Expenses-Retail for the accounts that are
in that group. You also will see Account Group as a sorting method on General
Ledger account lists. You can use the four user-defined fields to enter and track
information for each account.

GENERAL LEDGER 19
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Chapter 3: Posting accounts
Posting accounts are the financial accounts used to track assets, liabilities, revenue,
expenses, and equity. Transactions posted to these accounts appear on financial
reports. Examples of posting accounts include Cash, Cost of Goods Sold, and
Accounts Receivable.

If you didn’t install the default chart of accounts when you created the company but you
want to use the default chart of accounts now, you must delete the company and recreate it.
See the System Administrator’s Guide (Help >> Contents >> select System
Administration) for more information about creating companies.

This information is divided into the following sections:

• Setting up a posting account

• Deleting or inactivating a posting account

Setting up a posting account

Use the Account Maintenance window to set up a posting account. Before you add
accounts to an existing chart of accounts, print a Posting Accounts List (Financial >>
Reports >> Financial >> Account) to determine whether accounts should be added
to fit the current needs of your business.

As you set up accounts, keep in mind that you can create a basic set of accounts for a
department and use the Mass Modify Chart of Accounts window to copy the basic set of
accounts to other departments. Refer to Chart of accounts modifications on page 41 for more
information.

To set up a posting account:

1. Open the Account Maintenance window.
(Financial >> Cards >> Financial >> Account)

2. Enter an account identifier using any combination of letters or numbers. You

also can enter a description and an alias. Refer to Understanding account aliases
on page 18 for more information.

GENERAL LEDGER 21
PA RT 1 S E T U P

If you’ve set up account segments already and you leave the description field
blank, The account description will be created automatically by combining the
account segment descriptions.

To make changes to an existing posting account, enter or select the account.

3. Indicate whether you want users to be able to manually enter or select this
account in transaction or distribution entry windows. If you unmark this
option, you will not be able to manually enter this account in a transaction or
distribution entry window.

4. Enter or select the account category.

5. Specify whether the account typically appears on the Balance Sheet or the Profit
and Loss Statement. This selection determines which accounts will be closed at
year-end.

If you are unsure of an account’s posting type, refer to Understanding account

categories on page 15 for information about the posting type and financial statements
used with each of the account categories. If you’re unsure of the account type or balance,
you should contact a certified public accountant.

6. Specify the typical balance—debit or credit. Asset and expense accounts

normally have debit balances, while liability, revenue, and equity accounts
normally have credit balances. For example, your Cash account is an asset
account, and it typically should have a debit balance.

7. If the transaction origin in the Posting Setup window is set up to use account
settings, decide how much detail to post to this account from each series.

• Select Detail to post a separate distribution amount to this account for each
transaction in a batch.

• Select Summary to post a summarized total for an entire group of

transactions to this account.

For more information about posting setup, refer to the System Setup
instructions (Help >> Contents >> select Setting Up the System).

8. Select the series where you expect to use this posting account; the account will
appear in all lookup windows in the selected series. Use the SHIFT and CTRL
keys to select more than one series.

9. Enter additional information in the user-defined fields about the posting

account that you're setting up. The information will appear on the Posting
Accounts List and the Accounts List beneath the headings that were entered for
user-defined fields in the General Ledger Setup window.

10. Choose Summary to view open-year summary information for the account.
Choose History to view and enter historical year summary information. For
more information on entering account balances and history, see Chapter 9,
“Beginning balances and history.”

11. Choose Budget to enter a budget for the account. You can set up a budget for
the account now or wait until all accounts have been entered.

22 G E N ER AL LE D G ER
 C H A P T E R 3 PO S TI N G A C C O U N T S

12. Choose Analysis to enter default Multidimensional Analysis information. For

more information, refer to the Multidimensional Analysis documentation.

13. If you’re using Multicurrency Management, choose Currency to assign

currencies to the account.

You can mark Revalue Account to revalue the account when the revaluation
procedure is performed. Typically, cash accounts for another currency are
revalued to calculate the unrealized gain or loss based on fluctuating exchange
rates. You can revalue based on the net change amount for the revaluation
period or based on the period balance.

14. Choose Save to save the account. Redisplay the account and choose File >>
Print or the printer icon button to verify your entries with a Posting Accounts
List.

Deleting or inactivating a posting account

Use the Account Maintenance window to delete or inactivate an account. If an
account has become obsolete and you’re not planning to use it again, you can delete
it from the chart of accounts. In other situations, you can inactivate an account
because it has year-to-date activity and can’t be deleted from the chart of accounts.
If you inactivate an account, you won’t be able to post to that account.

To delete an account from the chart of accounts, it must first meet several
conditions:

• No balance
• No activity for an open period
• No account history amounts
• Not part of an allocation account
• Not part of an unposted transaction
• No multicurrency data
• No transaction history records

If the account has any activity for an open year, the account can’t be deleted.
However, once the year is closed and the above conditions are met, you can remove
transaction history for the account and delete it. For more information, see Removing
or printing history on page 188. When you remove transaction history, you won’t be
able to view the transaction detail in inquiry or on reports. When you choose to
delete an account, all budget information for the account also is deleted.

You can inactivate a posting account at any time. Inactive accounts continue to
appear on the financial statements if they have year-to-date activity. When you print
other reports in General Ledger, such as account lists, you can include inactive
accounts.

To delete or inactivate a posting account:

1. Open the Account Maintenance window.
(Financial >> Cards >> Financial >> Account)

2. Enter or select the account to delete or inactivate.

GENERAL LEDGER 23
24 G E N ER AL LE D G ER
Chapter 4: Unit accounts
Unit accounts track nonfinancial quantities such as employee headcount, square
footage or the number of customers with past due accounts.

This information is divided into the following sections:

• About unit accounts

• Setting up a unit account
• Posting to a unit account
• Deleting or inactivating a unit account

About unit accounts

Unit accounts are similar to posting accounts. Both are used in transaction entry,
and historical information and budgets can be kept for both types of accounts.
When you post to unit accounts, however, you post quantities rather than amounts.
Unit accounts don’t appear on financial statements.

You can use unit accounts to compare financial and nonfinancial information. You
can also use them with posting accounts to calculate information such as sales per
employee. Use unit accounts with variable allocation accounts to allocate amounts
such as rent expense to each department based on its square footage. For more
information on variable allocation accounts, see Chapter 6, “Variable allocation
accounts.”

Setting up a unit account

Use the Unit Account Maintenance window to set up or add a unit account. Before
you add accounts to an existing chart of accounts, choose File >> Print or the printer
icon button to print a Unit Accounts List to determine whether accounts should be
added to fit the current needs of your business. You also can use this window to
view period balances and net change balances for the selected account.

To set up a unit account:

1. Open the Unit Account Maintenance window.
(Financial >> Cards >> Financial >> Unit Account)

2. Enter an account identifier using any combination of letters or numbers. You

also can enter a description and an alias. Refer to Understanding account aliases
on page 18 for more information.

If you’ve set up account segments already and you leave the description field
blank. The account description will be created automatically by combining the
account segment descriptions.

To make changes to an existing unit account, enter or select the account.

3. Select the number or decimal places for the account’s amounts.

4. Choose the product series that will use this account.

5. Choose History to view and enter historical year summary information. For
more information on entering account history, see Chapter 9, “Beginning
balances and history.”

GENERAL LEDGER 25
PA RT 1 S E T U P

6. You can choose Budget to enter a budget for the unit account.

7. Choose Save to save the account. Redisplay the account and choose File >>
Print or the printer icon button to verify your entries with a Unit Accounts List.

Posting to a unit account

You can post adjustments to unit accounts in the transaction entry window. The
amount posted to a unit account will not affect the transaction totals or financial
statements. Unit accounts have a debit balance and are assigned to the non-financial
account category. You can enter a one-sided transaction to adjust a unit account
balance.

For example, assume you have set up a unit account to track square footage in a
building. In January, you sign a lease to rent an additional 10,000 square feet in the
building. You can enter a one-sided transaction in the Transaction Entry window or
add a line to an existing transaction to increase the unit account balance.

Deleting or inactivating a unit account

Use the Unit Account Maintenance window to delete or inactivate a unit account. If
an account has become obsolete and you’re not planning to use it again, you may
want to delete it from the chart of accounts. In other situations, you may want to
inactivate an account because it has year-to-date activity and can’t be deleted from
the chart of accounts.

To delete an account from the chart of accounts, it must first meet several
conditions:

• No balance
• No activity for an open period
• No account history amounts
• Not part of an allocation account
• Not part of an unposted transaction
• No multicurrency data
• No transaction history records

If the account has any activity for an open year, the account can’t be deleted.
However, once the year is closed and the above conditions are met, you can remove
transaction history for the account and delete it. For more information, see Removing
or printing history on page 188. When you remove transaction history, you won’t be
able to view the transaction detail in inquiry or on reports. When you choose to
delete an account, all budget information for the account also is deleted.

You can inactivate a unit account at any time. Inactive accounts continue to appear
on the financial statements if they have year-to-date activity. When you print other
reports in General Ledger, such as account lists, you can include inactive accounts.

To delete or inactivate a unit account:

1. Open the Unit Account Maintenance window.
(Financial >> Cards >> Financial >> Unit Account)

2. Enter or select the account to delete or inactivate.

26 G E N ER AL LE D G ER
 C H A P T E R 4 U N I T A C C O U N T S

3. Choose Delete to delete the account. Mark the Inactive box to inactivate the
account.

4. Choose Save to save the changes.

5. Print a Unit Accounts List to review the changes you’ve made to the chart of
accounts. For more information on printing lists and reports, see Chapter 31,
“General Ledger reports.”

GENERAL LEDGER 27
28 G E N ER AL LE D G ER
Chapter 5: Fixed allocation accounts
Fixed allocation accounts are used to distribute fixed percentages of a single
transaction among several accounts. For example, a fixed allocation account might
be used to divide utility expenses among the departments within a company. When
you post transactions to allocation accounts, the amounts are allocated to
distribution accounts based on percentages you define.

Allocation accounts don’t appear on the financial statements—only the

corresponding distribution accounts are shown. Once you’ve posted the
transaction, the balances of the distribution accounts assigned to the allocation
account reflect the changes you’ve made during transaction entry.

This information is divided into the following sections:

• Setting up a fixed allocation account

• Deleting or inactivating a fixed allocation account

Setting up a fixed allocation account

Use the Fixed Allocation Maintenance window to set up a fixed allocation account
to distribute fixed percentages of a transaction among several distribution accounts.
Distribution accounts can be either posting or unit accounts; however, all
distribution accounts assigned to a single allocation account must be the same
account type, either posting or unit accounts. Also, an allocation account can’t be
assigned as a distribution account for another allocation account.

To set up a fixed allocation account:

1. Open the Fixed Allocation Maintenance window.
(Financial >> Cards >> Financial >> Fixed Allocation)

2. Enter an account identifier using any combination of letters or numbers. You

also can enter a description and an alias. Refer to Understanding account aliases
on page 18 for more information.

If you’ve set up account segments already and you leave the description field
blank. The account description will be created automatically by combining the
account segment descriptions.

GENERAL LEDGER 29
PA RT 1 S E T U P

To make changes to an existing fixed allocation account, enter or select the

account.

3. If a transaction origin in the Posting Setup window is set up to use account

settings, select how much detail to post to this account from each series.

• Select Detail to post a separate distribution amount to this account for each
transaction in a batch.

• Select Summary to post a summarized total for an entire group of

transactions to this account.

4. Select the series where you expect to use this allocation account. The account
will appear in all lookup windows in the selected series.

5. Enter or select distribution accounts and percentages.

You can save a fixed allocation account even if the percentages for distribution
don’t equal 100%. However, you won’t be able to post transactions to the
account until they do.

6. Save the account. Redisplay the account and choose File >> Print or the printer
icon button to verify your entries with a Fixed Allocation Accounts List.

Deleting or inactivating a fixed allocation account

Use the Fixed Allocation Maintenance window to delete or inactivate a fixed
allocation account. Allocation accounts often are set up to accommodate a specific
situation, such as a sales promotion where a specified amount of cash is distributed
among locations, then broken down by department. Once the sales promotion is
over, the account might no longer be of value and can be deleted from the chart of
accounts.

In other situations, you might want to inactivate an account, rather than delete it
from the chart of accounts. Inactivating an account prevents posting to the account,
but keeps information about the account.

Fixed allocation accounts can be deleted at any time, unless the account is used on
any unposted transactions. When you delete a fixed allocation account, you’ll also
delete associated records for distributions. The posting or unit accounts you’ve
assigned as distributions and posted transactions that used the fixed allocation
account won’t be affected.

The Fixed Allocation Accounts List displays all the fixed allocation accounts you’ve
created, including distribution accounts. You should print this list periodically to
ensure that your chart of accounts accurately reflects the current needs of your
business. For more information on printing lists and reports, see Chapter 31,
“General Ledger reports.”

To delete or inactivate a fixed allocation account:

1. Open the Fixed Allocation Maintenance window.
(Financial >> Cards >> Financial >> Fixed Allocation)

2. Enter or select the allocation account you want to delete or inactivate.

30 G E N ER AL LE D G ER
 C H A P T E R 5 F I X ED A L L O C A TI O N A C C O U N T S

3. Choose Delete to delete the account, or mark the Inactive option to inactivate
the account.

4. Choose Save to save the changes.

5. Choose File >> Print or the printer icon button to print a Fixed Allocation
Accounts List to review the changes you’ve made to the chart of accounts.

GENERAL LEDGER 31
32 G E N ER AL LE D G ER
Chapter 6: Variable allocation accounts
Variable allocation accounts are used to distribute percentages of a single
transaction to several different accounts, much like fixed allocation accounts. You
might use variable allocation accounts instead of fixed allocation accounts when
you need to break down expenses precisely. For example, you could set up an
account, Insurance Expense, and distribute the expense among the distribution
accounts set up for each department. The expense could be further broken down by
the number of employees in each department, if you set up unit accounts that track
each department’s head count.

This information is divided into the following sections:

• Understanding variable allocation accounts

• Setting up a variable allocation account
• Deleting or inactivating a variable allocation account

Understanding variable allocation accounts

Although variable allocation accounts are similar to fixed allocation accounts,
variable allocation accounts don’t use fixed percentages to calculate amounts that
will be posted to the distribution accounts.

Instead, you can use variable allocation accounts to distribute transactions based on
additional factors that might change over time, such as the number of employees or
the physical size of the departments in your business. These additional factors are
tracked by breakdown accounts. Breakdown accounts can be posting accounts, like
sales and expenses, or they can be unit accounts, like the number of employees per
department.

When transactions are posted to a variable allocation account, the total is divided
among its distribution accounts, based on the percentages determined by the
breakdown accounts. You don’t need to enter these percentages, because they are
calculated based on the varying balance of each breakdown account. Each time you
post to a variable allocation account, the percentages might vary because the
balances of the breakdown accounts might have changed.

For example, assume you need to distribute the rent expense for a building between
several departments and use unit accounts to track the square footage used by each
department. You can set up a variable allocation account and use the rent expense
for each department as the distribution accounts and the square footage unit
accounts for the breakdown accounts. When you post an amount to the variable
allocation account, the balances of the unit accounts are used to determine the rent
expense amount to post to each department.

Variable allocation accounts don’t appear on financial statements because they

don’t have balances. The amounts posted to variable allocation accounts are
reflected in the balances of the distribution accounts. The distribution accounts
appear on financial statements if they’re posting accounts.

Setting up a variable allocation account

Use the Variable Allocation Maintenance window to set up a variable allocation
account.

GENERAL LEDGER 33
PA RT 1 S E T U P

Distribution and breakdown accounts can be posting accounts or unit accounts. All
distribution accounts assigned to a single allocation account must be the same
account type. All breakdown accounts assigned to all distribution accounts, for that
variable allocation account, also must be the same account type. However, your
breakdown accounts don’t have to be the same account type as your distribution
accounts. For example, you can enter posting accounts for the distribution accounts
and unit accounts for the breakdown accounts. Other allocation accounts can’t be
used as distribution or breakdown accounts.

To set up a variable allocation account:

1. Open the Variable Allocation Maintenance window.
(Financial >> Cards >> Financial >> Variable Allocation)

2. Enter an account identifier using any combination of letters or numbers. You

also can enter a description and an alias. Refer to Understanding account aliases
on page 18 for more information. If you’ve set up account segments already and
you leave the description field blank, Microsoft Dynamics GP will create the
account description automatically by combining the account segment
descriptions.

To make changes to an existing variable allocation account, enter or select the

account.

3. Indicate whether you want to calculate the percentages based on the year-to-
date balance or on the transaction period balance of each breakdown account.

The transaction period balance is the net amount posted to the breakdown
account in a period. The user date determines which period is used.

4. If the transaction origin in the Posting Setup window is set up to use account
settings, select how much detail to post to General Ledger from each series.

• Select Detail to post a separate distribution amount to this account for each
transaction in a batch.

• Select Summary to post a summarized total for an entire group of

transactions to this account.

34 G E N ER AL LE D G ER
 C H A P T E R 6 V A R IA B L E A L L O C A TI O N A C C O U N T S

5. Select the series where you expect to use this allocation account; the account
will appear in all lookup windows in the selected series.

6. Enter or select distribution accounts.

7. Enter or select breakdown accounts for each distribution account. The balances
of the breakdown accounts determine the percentage that will be posted to each
distribution account.

8. Choose Save to save the account. Redisplay the account and choose File >>
Print or the printer icon button to verify your entries with a Variable Allocation
Accounts List.

Deleting or inactivating a variable allocation account

Use the Variable Allocation Maintenance window to delete or inactivate a variable
allocation account.

Variable allocation accounts can be deleted at any time, unless the account is used
on any unposted transactions. When you delete a variable allocation account, you
also delete associated records for breakdowns and distributions. The posting or unit
accounts you’ve assigned as distributions and breakdowns and posted transactions
that used the variable allocation account won’t be affected.

The Variable Allocation Accounts List contains all the variable allocation accounts
you’ve created, including breakdown and distribution accounts. You should print
this list periodically to ensure that your chart of accounts accurately reflects the
current needs of your business.

To delete or inactivate a variable allocation account:

1. Open the Variable Allocation Maintenance window.
(Financial >> Cards >> Financial >> Variable Allocation)

2. Enter or select the account to delete or inactivate.

3. Choose Delete to delete the account or mark the Inactive option to inactivate the
account.

4. Print a Variable Allocation Accounts List to review the changes you’ve made to
the chart of accounts.

5. Choose Save to save the changes.

GENERAL LEDGER 35
36 G E N ER AL LE D G ER
Chapter 7: Retained earnings accounts
Retained earnings accounts are used for transferring the balances of current-year
profit and loss accounts during the year-end closing process. The profit and loss
accounts can be closed to two types of retained earnings accounts: a single retained
earnings account or divisional retained earnings account. A net income or net loss
amount is transferred to the retained earnings account that you choose in the
General Ledger Setup window.

This information is divided into the following sections:

• Understanding single retained earnings accounts

• Setting up a single retained earnings account
• Understanding divisional retained earnings accounts
• Setting up divisional retained earnings accounts

Understanding single retained earnings accounts

A single retained earnings account can be a posting account or a fixed allocation
account. In a single retained earnings account, the net income or net loss amount is
closed to a single posting account.

You can distribute the retained earnings to a fixed allocation retained earnings
account. You can use a fixed allocation account to post amounts to distribution
accounts based on the fixed percentage that you defined when you set up the fixed
allocation account.

Setting up a single retained earnings account

Use the General Ledger Setup window to set up a retained earnings account. If you
decide to close the profit and loss accounts to one retained earnings account, the net
income or net loss amount are closed to a single posting account or fixed allocation
account.

Select your retained earnings account before posting your beginning balances.

To set up a single retained earnings account:

1. Open the General Ledger Setup window.
(Financial >> Setup >> Financial >> General Ledger)

GENERAL LEDGER 37
PA RT 1 S E T U P

2. Enter or select a posting account or fixed allocation account to use as your

retained earnings account.

3. Save the account.

Understanding divisional retained earnings accounts

You can close your profit and loss accounts to divisional retained earnings accounts.
If you use divisional retained earnings accounts, you can close the profit and loss
accounts for each division to the retained earnings accounts that corresponds to the
department. Divisional retained earnings accounts also can be fixed allocation
accounts.

Account segments are used to determine how the retained earnings will be divided
when using a divisional retained earnings account. You can use divisional retained
earnings accounts if the following conditions apply:

• Your company uses an account segment to represent individual departments

within your company.

• A retained earnings account is set up for each department.

• The account number used for retained earnings for each department is
identical, except for the account segment used to represent departments.

For example, a company has three departments and three segments in the account
format. The first account segment represents the department, the second segment is
the account number and the third segment is a sub-account. A retained earnings
account must be set up for each department as follows:

Department Retained earnings account

Administration 100-3100-00
Sales 200-3100-00
Training 300-3100-00

If a retained earnings account was not set up for the training department, you won’t
be able to complete a year end close for the company.

Setting up divisional retained earnings accounts

Use the Account Maintenance window to set up a divisional retained earnings
account.

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 C H A PT E R 7 R E T A I N E D EA R N I N G S A C C O U N T S

To set up divisional retained earnings accounts:

1. Open the Account Maintenance window.
(Financial >> Cards >> Financial >> Account)

2. Set up a separate retained earnings account for each division. Each account
must be identical, except for the segment your division will be based on.

You must set up a retained earnings account for each division in the company, otherwise
the year-end close will not take place.

3. Save your changes in the Account Maintenance window.

4. Open the General Ledger Setup window.

(Financial >> Setup >> Financial >> General Ledger)

5. Mark Close to Divisional Account Segments and enter or select the account
segment you’ll use as the divisional segment. For example, you might enter the
first segment, Department.

6. Enter or select one of the retained earnings accounts set up earlier. This account
will be used as a template to find the retained earnings accounts for the
remaining divisions.

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Chapter 8: Chart of accounts
A chart of accounts is a list of all accounts in General Ledger. You can modify an
existing chart of accounts, or define segments to identify specific business units.

This information is divided into the following sections:

• Setting up an account segment definition

• Chart of accounts modifications
• Modifying ranges of accounts

Setting up an account segment definition

Use the Account Segment Setup window to enter or change account segment
definitions for each account segment number.

To set up an account segment definition:

1. Open the Account Segment Setup window.
(Financial >> Setup >> Financial >> Segment)

2. Enter or select the segment ID to further identify.

3. Enter or select a segment number. For example, if all the accounts for Store 1
begin with 100, enter 100.

4. Enter the description for the segment. For example, if you selected segment
number 100 and that segment number is for accounts at the North Store, you’d
enter North Store.

5. Choose Save.

6. Repeat steps 2 through 5 for each account segment definition.

7. Choose File >> Print or the printer icon button to print the Account Segment
List.

Chart of accounts modifications

You can use General Ledger to change or copy ranges of accounts in your chart of
accounts. For example, you can copy a range of accounts created for one
department for use in another department. You can use the Mass Modify Chart of
Accounts window to copy, move, inactivate, delete, and update accounts in a chart
of accounts. To modify the chart of accounts, see Modifying ranges of accounts.

Copy Use this method to duplicate a range of accounts. For example, if the first
segment of an account number identifies the department and you’ve created a
range of accounts with 100 as the first segment number, you could copy all those

GENERAL LEDGER 41
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accounts and assign a new first segment number 200. This copies the account,
typical balance, account type, series, and active/inactive information. Account
descriptions for the copied accounts will be formed by combining the descriptions
of the account segments. Spaces will be left in the account description for any
segments that have a blank description. Actual account balances aren’t copied.

Move Use this method to move accounts within your company. You might want
to do this if a different department is now performing tasks associated with a range
of accounts. Account descriptions for the new accounts will be formed by
combining the descriptions of the account segments. Spaces will be left in the
account description for any segments that have a blank description.

You can move accounts only if they meet the following conditions:

• No balance
• No activity for an open period
• No account history amounts
• Not part of an allocation or unposted transaction
• Not part of an unposted transaction
• No multicurrency data
• No transaction history records

Inactivate Use this method to inactivate a range of active accounts with zero
balances or to inactivate all accounts in the range. For example, if your company
purchased a building and needed to inactivate all the rent expense accounts you’ve
used previously, you could inactivate the range of accounts at once, rather than
doing them one at a time.

Delete Use this method to delete a range of accounts from the chart of accounts.
All account information will be removed. For example, you might delete a range of
accounts if you’re closing out a product line and no longer need the accounts or
information associated with it. Deleting accounts permanently removes them from
the chart of accounts.

You can delete accounts only if they meet the following conditions:

• No balance
• No activity for an open period
• No account history amounts
• Not part of an allocation or unposted transaction
• Not part of an unposted transaction
• No multicurrency data
• No transaction history records

Update Use this method to update the level of posting for a range of accounts
from the chart of accounts. For example, you might want to change the level of
posting from summary to detail so that you can track additional information for
that range of accounts.

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Modifying ranges of accounts

Use the Mass Modify Chart of Accounts window to copy, move, delete, inactivate,
or update ranges of accounts that you’ve already entered in your chart of accounts.

All four account types—posting, unit, fixed allocation, and variable allocation—are
included in the chart of accounts and can be modified using this window.

The changes made in this window permanently affect the chart of accounts, so you might
want to experiment with the sample company before modifying your accounting data. Back
up your company’s data directory before making changes to your company’s accounts, so
you can restore the chart of accounts and related information if necessary. For more
information about making backups, see the System Administrator’s Guide (Help >>
Contents >> select System Administration).

To modify a range of accounts:

1. Open the Mass Modify Chart of Accounts window.
(Financial >> Cards >> Financial >> Mass Modify)

2. Choose a Modify option. Refer to Chart of accounts modifications on page 41 for

more information.

3. Select a range of accounts.

4. If you’re updating accounts, select the level of posting for each series.

• Select Detail to post a separate distribution to each account in the range for
each transaction in a batch.

• Select Summary to post a summarized total for an entire group of

transactions to each account in the range.

5. If you’re copying or moving accounts, enter an account mask.

For example, suppose you have a range of accounts set up for an existing
department, and you want to create a similar set of accounts for a new
department. If the first segment is used to identify departments, and the
existing department is identified by 100, you could enter 200 in the first
segment of the new account mask. The range of accounts you selected would be
copied but 200 would be substituted for the first segment.

GENERAL LEDGER 43
PA RT 1 S E T U P

6. Choose Modify.

If you’ve selected to display all the accounts, your entire chart of accounts
appears and you can scroll through the account list to find your changes.

You also can display the modified range only by marking Selected Range. Only
the modified accounts will appear in the scrolling window.

44 G E N ER AL LE D G ER
Chapter 9: Beginning balances and history
Unless your business is new, you must enter existing accounting data if you want it
to be available for comparative analysis. You can enter beginning balances for a new
fiscal year or in the middle of a fiscal year. You also can enter account history.

This information is divided into the following sections:

• Understanding beginning balances and history

• Entering beginning balances for a new fiscal year
• Entering beginning balances in the middle of a fiscal year
• Entering account history

Understanding beginning balances and history

You can keep unlimited years of account and transaction history in General Ledger.
If you choose to keep history in General Ledger, you can print historical information
on financial statements and compare historical-year amounts to open-year amounts.
You also can calculate budgets based on information from a historical year.

When you’re setting up General Ledger for the first time, you can enter three types
of information:

Beginning balances The beginning balances for all posting accounts and unit
accounts in your chart of accounts.

Account history A record of account summary balances for previous periods.

Transaction history A detailed record of all transactions that have been posted
to each account.

Entering beginning balances for a new fiscal year

Use the Batch Entry window and the Transaction Entry window to enter beginning
balances and history at the beginning of a fiscal year. The balance brought forward
into the fiscal year serves as the beginning balance for the accounts.

Be sure to mark the appropriate options in the General Ledger Setup window for
maintaining account and transaction history if you plan to keep either type of
historical information. You also must mark Allow Posting to History. For more
information about setup options, see Setting up default entries and preferences on
page 9.

Be sure that you’ve set up the previous year in the Fiscal Periods Setup window
(Administration >> Setup >> Company >> Fiscal Periods) and marked it as a history year.

GENERAL LEDGER 45
PA RT 1 S E T U P

To enter beginning balances for a new fiscal year:

1. Open the Batch Entry window.
(Financial >> Transactions >> Financial >> Batches)

2. Enter a batch ID—such as BBAL, for beginning balances—and select General

Entry as the origin.

3. Enter a batch comment, such as “Beginning balance for FY02.”

4. Select Single Use as the frequency because you’ll post beginning balances and
historical information only once.

You can enter batch control totals in the Batch Entry window to verify the number of
beginning balance transactions entered or the total amount of the batch. For more
information on batch controls, refer to the System User’s Guide (Help >> Contents >>
Using the system).

5. Choose Transactions to open the Transaction Entry window, where you can
enter beginning balance transactions.

6. Enter a journal entry number and select Standard as the transaction type.

7. Enter a transaction date that falls within the historical year.

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With General Ledger you can post to the most recent historical year. The
transaction date determines which period in the historical year the transaction
will be posted to. When the transaction is posted, the amounts will also be
brought forward to the open fiscal year to adjust the beginning balance for each
account.

8. Enter or select a source document ID and reference.

9. Enter beginning balances and historical information.

Refer to the table for more information about the information you must enter,
depending on the amount of history you’re keeping.

If you plan to keep: Enter:

Account and transaction Enter the historical year’s first period balance for each
history account in the debit or credit column, depending on the
(Detailed transaction history account’s typical balance using the first day of the
for each period) historical year as the date.
Enter each transaction from the historical year as a
separate entry using the exact date of the transaction in
the historical year. Choose Save after each transaction
entry.
Account history only (Account Enter the historical year’s first period balance for each
summary balances for each account in the debit or credit column, depending on the
period) account’s typical balance.
Enter a summary transaction for each period of the
historical year for each account you want summary
account information posted to using the last day of the
period as the date.
Beginning balances only Enter the beginning balances for each balance sheet
account in the debit or credit column, depending on the
account’s typical balance, using the last day of the
historical year as the date.
Each balance sheet account should be listed as one line in
the scrolling window of the Transaction Entry window.

As transactions used to enter historical information are posted to the most

recent historical year, beginning balances for each account will be calculated
automatically.

If you enter a debit and credit amount on the same line, the debit entry will be deleted
automatically when you move to the following line.

10. Choose File >> Print or the printer icon button to verify your entries with a
General Transaction Edit List before posting.

11. Choose the Batch ID expansion button to open the Batch Entry window.

12. Choose Post.

Audit trail codes are automatically assigned to these transactions as they’re

posted. You can use audit trail codes to trace the posting sequence of a
transaction back to its origin. The audit trail code for transactions posted to
history will have the prefix GLTHS and transactions posted to the current year
will have the prefix GLTRX.

GENERAL LEDGER 47
PA RT 1 S E T U P

Entering beginning balances in the middle of a fiscal

year
Use the Batch Entry window and the Transaction Entry window if you’re entering
beginning balances and history during an on-going fiscal year. You must enter both
historical information and current information.

Be sure to mark the appropriate options in the General Ledger Setup window for
maintaining account and transaction history if you plan to keep either type of
historical information. You also must mark Allow Posting to History.

Be sure that you’ve set up the prior year in the Fiscal Periods Setup window
(Administration >> Setup >> Company >> Fiscal Periods) and marked it as a historical
year.

To enter beginning balances in the middle of a fiscal year:

1. Open the Batch Entry window.
(Financial >> Transactions >> Financial >> Batches)

2. Enter a batch ID—such as BBAL—for beginning balances.

3. Select General Entry as the origin.

4. Enter a batch comment, such as “Beginning balance for FY08.”

5. Select Single Use as the frequency because you’ll post beginning balances and
historical information once only.

You can enter batch control totals in the Batch Entry window to verify the number of
beginning balance transactions entered or the total currency amount of the batch. For
more information on batch controls, refer to the System User’s Guide (Help >>
Contents >> Using the system).

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 C H A P T E R 9 B E G I N N I N G B A L A N C E S A N D H I S T O R Y

6. Choose Transactions to open the Transaction Entry window, where you will
enter beginning balance transactions.

7. Enter a journal entry number.

8. Select Standard as the transaction type since you’re entering standard

transactions to record your beginning balances.

9. Enter a transaction date that falls within the historical year. The transaction date
determines which period in the historical year the transaction will be posted to.
When the transaction is posted, the amounts will also be brought forward to the
open fiscal year to adjust the beginning balance for each account.

10. Enter or select a source document ID and reference.

11. Enter beginning balances and historical information and save the transactions.

Refer to the following table for more information about the information you
must enter, depending on the amount of history you’re keeping.

If you plan to keep: Enter:

Account and transaction Enter the historical year’s first period balance for each
history account in the debit or credit column, depending on the
(Detailed transaction history account’s typical balance using the first day of the historical
for each period) year as the date.
Enter each transaction from the historical year as a separate
entry using the exact date of the transaction in the historical
year. Choose Save after each transaction entry.
Account history only Enter the historical year’s first period balance for each
(Account summary balances account in the debit or credit column, depending on the
for each period) account’s typical balance.
Enter a summary transaction for each period of the historical
year for each account you want summary account
information posted to using the last day of the period as the
date.

GENERAL LEDGER 49
PA RT 1 S E T U P

If you plan to keep: Enter:

Beginning balances only Enter the beginning balances for each balance sheet account
in the debit or credit column, depending on the account’s
typical balance, using the last day of the historical year as
the date.
Each balance sheet account should be listed as one line in
the scrolling window of the Transaction Entry window.

As transactions used to enter historical information are posted to the most

recent historical year, beginning balances for each account will be calculated
automatically.

If you enter a debit and credit on the same line, the debit entry will be deleted
automatically when you move to the following line.

12. Choose Save to save the transaction.

13. Enter another journal entry number, select Standard as the transaction type and
enter a transaction date to begin entering accounts and amounts for current
year activity.

• If you plan to keep account and transaction history, enter each transaction
from the current year as a separate transaction, using the exact date of the
transaction.

• If you plan to keep only account history, enter a summary transaction for
the activity in each previous period in the current year, using the last day of
the period as the transaction date.

14. Choose File >> Print or the printer icon button to verify your entries with a
General Transaction Edit List.

15. Choose the Batch ID expansion button to open the Batch Entry window. Choose
Post. The posted amounts for the historical year are brought forward to the
open year as each account’s beginning balance, and the correct historical
information will be added.

Audit trail codes automatically will be assigned to these transactions as they’re

posted. Audit trail codes enable you to trace the posting sequence of a given
transaction back to the point it was originally entered in Microsoft Dynamics
GP. The audit trail code for transactions posted to history will have the prefix
GLTHS and transactions posted to the current year will have the prefix GLTRX.

Entering account history

Use the Account History window to enter summary amounts for each account.
Even if you have historical information for each account for several historical years,
you can only post information to the most recent historical year. To enter history for
earlier years, you must enter summary account information in this window. You
also can use the Account History window to change or delete existing account
history information for posting and unit accounts.

Before entering account history for a particular year, you must set up the year and mark it as
a historical year in the Fiscal Periods Setup window. For more information about fiscal
period setup, refer to the System Setup instructions (Help >> Contents >> select Setting Up
the System).

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 C H A P T E R 9 B E G I N N I N G B A L A N C E S A N D H I S T O R Y

To enter account history:

1. Open the Account History window.
(Financial >> Cards >> Financial >> Account History)

2. Enter or select an account.

3. Select the year for which you want to enter or update historical information.

4. Enter the net change, either debit or credit, for each period in the selected year.
The net change and period balance fields will be updated automatically.

5. If you’re using Multicurrency Management, you can choose Currency to open

the Multicurrency Account History window, where you can enter historical
multicurrency information for this account.

If you aren’t using Multicurrency Management, skip to step 7.

You can add, modify, or delete balances for an account for the selected period
and currency. You also can use the window to calculate a functional currency
amount for transaction activity for the selected account in a historical period by
entering amounts and exchange rates in the originating currency.

6. Choose Save and close the Multicurrency Account History window when
you’ve finished.

7. Choose Save in the Account History window.

If you enter account history balances in the Account History window, you shouldn’t
reconcile the historical year. The reconcile process would look for detail transactions, but
would not find any. The summary balances would then be set to zero.

GENERAL LEDGER 51
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Chapter 10: Quick journal transactions setup
You can use quick journals to quickly enter journal entries that aren’t part of a batch.
This document defines quick journals and explains how to use them.

This information is divided into the following sections:

• Understanding quick journal transactions

• Setting up a quick journal
• Deleting a quick journal

Understanding quick journal transactions

You can use the Quick Journal Setup window to set up a template for entering many
different types of transactions. Quick journals are most effective for transaction
entry when the accounts used in the transaction remain constant but the amounts
vary. You can make entries more quickly than in the Transaction Entry window
because all the necessary accounts are already set up in the quick journal and you’ll
enter only the transaction amounts for each account.

For example, your company might make monthly cash disbursements for rent,
utilities, telephone, and insurance expenses. In the Quick Journal Setup window,
you could set up a quick journal entry that includes all the accounts required to
enter these disbursements. Instead of having to reenter the accounts every pay
period in the Transaction Entry window, you enter only the amounts for the
selected accounts. For more information about using quick journals, see Chapter 20,
“Quick journal transactions.”

If you’re using Multicurrency Management, you can enter quick journals only in your
company’s functional currency.

Setting up a quick journal

Use the Quick Journal Setup window to create a quick journal, to make changes and
add accounts to an existing journal or to delete a journal altogether.

GENERAL LEDGER 53
PA RT 1 S E T U P

To set up a quick journal:

1. Open the Quick Journal Setup window.
(Financial >> Setup >> Financial >> Quick Journal)

2. Enter or select a journal ID and enter a description.

3. Enter or select a source document and enter a reference. For more information
about setting up source documents, refer to the System Setup instructions
(Help >> Contents >> select Setting Up the System).

4. Enter or select the offset account. The entire offsetting portion of each
transaction entered in this quick journal will be posted to this account.

Mark the Allow Override option to enable users to override the default offset
account when entering transactions. Don’t mark the option if you want to use
the default offset account every time you enter quick journal transactions.

Only posting accounts, fixed allocation accounts, or variable allocation accounts can be
offset accounts. Unit accounts can’t be entered as the offsetting account in a quick
journal entry since they track nonfinancial quantities.

5. To have breakdown allocations printed on the Quick Journal Edit List and
Quick Journal Posting Journal, mark the Break Down Allocation option.

6. Enter or select the accounts to which transactions entered in this quick journal
will be posted.

7. Choose Save.

8. Choose File >> Print or the printer icon button while the Quick Journal Setup
window is displayed to review the options you’ve selected with the Quick
Journal Setup List.

Deleting a quick journal

Use the Quick Journal Setup window to delete quick journals. When you delete a
quick journal, any unposted quick journal transactions using this quick journal also
will be deleted. An alert message will appear if there are unposted quick journal
transactions.

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C H A P T E R 1 0 Q U I C K J O U R N A L T R A N S A C T I O N S S E TU P

To delete a quick journal:

1. Open the Quick Journal Setup window.
(Financial >> Setup >> Financial >> Quick Journal)

2. Enter or select the journal ID.

3. Choose Delete.

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Chapter 11: Revenue/Expense Deferrals setup
Before you begin using Revenue/Expense Deferrals, you need to set the options
you want to use for creating deferral transactions, such as the posting method used,
and user access options.

This information includes the following sections:

• Revenue/Expense Deferrals overview

• Deferral posting methods
• Balance Sheet posting example
• Profit and Loss posting example
• Setting up revenue/expense deferrals
• Selecting deferral warning options
• Setting up a deferral profile
• Setting access to a deferral profile

Revenue/Expense Deferrals overview

Revenue/Expense Deferrals simplifies deferring revenues or distributing expenses
over a specified period. Revenue or expense entries can be made to future periods
automatically from General Ledger, Receivables Management, Payables
Management, Sales Order Processing, Purchase Order Processing, and Invoicing.

If you use deferral transactions frequently, you can set up deferral profiles, which
are templates of commonly deferred transactions. Using deferral profiles helps
ensure that similar transactions are entered with the correct information. For
example, if you routinely enter transactions for service contracts your company
offers, and the revenue is recognized over a 12-month period, you could set up a
deferral profile for these service contracts, specifying the accounts to be used, and
the method for calculating how the deferred revenue is recognized.

Deferral posting methods

You can use two methods for posting the initial transactions and the deferral
transactions: the Balance Sheet method, and the Profit and Loss method.

Balance Sheet Using the Balance Sheet method, you’ll identify two posting
accounts: a Balance Sheet deferral account to be used with the initial transaction for
the deferred revenue or expense, and a Profit and Loss recognition account to be
used with each period’s deferral transaction that recognizes the expense or revenue.
For an illustration of this method, see Balance Sheet posting example on page 58.

Profit and Loss Using the Profit and Loss method, you can identify up to five
accounts, which allows greater detail in financial reporting than the Balance Sheet
method. These accounts are three Profit and Loss accounts, and two Balance Sheet
accounts.

GENERAL LEDGER 57
PA RT 1 S E T U P

Profit and Loss accounts:

• An account for the initial posting of the full amount of the original revenue or
expense
• An account used for reversing the deferred revenue or expense (this can be the
same as the original account)
• An account used for recognizing the deferred revenue or expense (again, this
can be the same as the original account)

Balance Sheet accounts:

• A deferrals account to record the full deferred balance (transferred from the
original revenue or expense account)
• A deferrals transfers account (this can be the same as the deferrals account)

For an illustration of this method, see Profit and Loss posting example on page 58.

Once you have selected a deferral posting method for a series and posted deferral
transactions, we recommend that you not change the deferral posting method.

Balance Sheet posting example

Assume you have a transaction for $12,000 of revenue, to be deferred over one year,
from January to December. When you defer this transaction using the Balance Sheet
posting method, the full sales amount is posted to the deferrals account, rather than
the sales account that would be used for non-deferred revenue. The initial
transaction is posted as follows:

Account Debit Credit

Cash $12,000
Deferrals Account $12,000

The deferral transactions for each month created for this deferred revenue would
appear as follows:

Account Debit Credit

Deferrals Account $1,000
Sales Recognition Account $1,000

The full revenue amount of $12,000 will be posted to the Profit and Loss sales
recognition account in $1,000 increments each month for a year, and the Balance
Sheet deferrals account is reduced by the same amount.

Profit and Loss posting example

Assume you have a transaction for $12,000 of revenue, to be deferred over one year,
from January to December. Three Profit and Loss accounts, and two Balance Sheet
accounts are being used for the deferral. The full sales amount is posted to the usual
sales account, as follows:

Account Debit Credit

Cash $12,000
Original Sales Account $12,000

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However, when you defer this transaction using the Profit and Loss posting
method, a second entry is also created that reverses the Sales account entry and
transfers the full balance to the deferrals account.

Account Debit Credit

Deferred Sales Account $12,000
Deferrals Account $12,000

The deferral transactions for each month created for this deferred revenue would
appear as follows:

Account Debit Credit

Deferrals Transfer Account $1,000
Sales Recognition Account $1,000

The balances for the Profit and Loss accounts at the end of the deferral period will
appear as follows:

Account Debit Credit

Original Sales Account $12,000
Deferred Sales Account $12,000
Sales Recognition Account $12,000

The balances for the Balance Sheet accounts at the end of the deferral period will
appear as follows:

Account Debit Credit

Deferrals Account $12,000
Deferrals Transfer Account $12,000

The overall result will be a credit balance of $12,000 for the Profit and Loss sales
accounts, and a $0 balance for the Balance Sheet deferrals accounts.

You can use the same account for the original sales, deferred sales, and sales recognition
accounts, and for the deferrals and deferrals transfer accounts. However, if you use a
different account for each, you can identify the amounts for reporting purposes.

Setting up revenue/expense deferrals

Use the Deferral Setup window to enter the options you want to use with Revenue/
Expense Deferrals.

GENERAL LEDGER 59
PA RT 1 S E T U P

To set up revenue/expense deferrals:

1. Open the Deferral Setup window.
(Financial >> Setup >> Financial >> Deferral)

2. Enter the next batch number you want to use for deferral transactions, the
source document code, and the next transaction number.

3. Select the default method you want to use to calculate the allocations for
deferral transaction amounts.

• The Days In Period method apportions the amount based on the number of
days in a fiscal period.

• The Equal Per Period method allocates an equal amount per fiscal period.

• The Miscellaneous method allows you to specify the length of the periods,
and allocates an equal amount per period.

4. Indicate whether you want to automatically post deferral transactions through

General Ledger, and to closed future or previous fiscal periods.

5. Indicate whether you want deferral transactions for the Sales and Purchasing
series to use the Balance Sheet or Profit and Loss method for posting the initial
and deferral transactions. For more information, see Deferral posting methods on
page 57.

Once you have selected a deferral posting method for a series and posted deferral
transactions, we recommend that you don’t change the deferral posting method.

6. Specify whether you want to void the associated original transaction when any
deferral transaction is voided.

7. Indicate whether you want all users to have access to deferral profiles, or if you
want to limit access based on user or user class. If you restrict access, you’ll
specify the users or user classes that have access to a profile when you set up
the profile. For more information, see Setting up a deferral profile on page 61.

8. Select an option for overriding distribution accounts.

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9. Indicate whether you want the deferral posting reports to be printed, and
specify whether you want them sent to the printer, displayed on screen, or both.

10. Choose Warning Options to set up options for warning users about assigning
deferrals to specific distribution types. For more information, see Selecting
deferral warning options on page 61.

11. Choose OK to save your changes and close the window.

Selecting deferral warning options

Use the Deferral Warning Options window to select the warning options you want
to use to help prevent users from attaching deferrals to incorrect distribution types.
For example, you could set up the warning options for Sales Order Processing so if a
user attempted to defer the CASH distribution, a warning would appear.

Selecting these options does not block a user from attaching a deferral transaction to an
incorrect distribution type. A message will appear in this situation, but the user can post the
transaction.

To select deferral warning options:

1. Open the Deferral Setup window.
(Financial >> Setup >> Financial >> Deferral)

2. Choose Warning Options to open the Deferral Warning Options window.

3. Select the module you want to select warning options for from the list.

4. Mark the checkbox for the distribution types you want to avoid using for
deferrals.

5. Select another module, and continue selecting warning options.

6. Choose OK to save your entries and close the window.

Setting up a deferral profile

Use the Deferral Profile Maintenance window to set up templates of commonly
deferred transactions. Using deferral profiles helps ensure that similar transactions
are entered with the correct information. For example, if you routinely enter
transactions for service contracts your company offers, and the revenue is
recognized over a 12-month period, you could set up a deferral profile for these

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service contracts, specifying the accounts to be used, and the method for calculating
how the deferred revenue is recognized.

You can set up profiles for transactions originating in General Ledger, Receivables
Management, Sales Order Processing, Payables Management, and Purchase Order
Processing.

To set up a deferral profile:

1. Open the Deferral Profile Maintenance window.
(Financial >> Setup >> Financial >> Deferral Profiles)

2. Enter a name for this profile. For example, you could create a profile called
SERVICE CONTRACT.

3. Select the modules the profile is to be used with from the list. For example, you
might want to use a service contracts profile with Receivables Management and
Sales Order Processing.

To select multiple modules, hold down the CTRL key while clicking the
modules.

4. Select the types of distribution you want this profile used with. For example,
you might select the SALES, MISC, and SERVICE distribution types.

To select multiple distributions, hold down the CTRL key while clicking the
distributions.

5. Select the accounts you want to use to defer and recognize the revenues or
expenses. Depending on the option you selected for overwriting distribution
accounts in the Deferral Setup window, you may be able to mark the option to
enable an account to be changed.

6. Select the method to calculate the deferral amounts across each period, the date
of the first allocation, and the number of fiscal periods to allocate the
transaction over. If you leave the start date or number of periods blank, you’ll
need to enter a start date and number of periods when you use the profile to
defer a transaction distribution.

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7. If you chose to limit access to profiles to specific users or user classes in the
Deferral Setup window, choose User Access to select the users or user classes
who can use this profile. You can also select the information on a profile you
want users to be able to change. For more information, see Setting access to a
deferral profile on page 63.

8. Choose Save to save this profile.

Setting access to a deferral profile

Use the Profile User Access window to limit access to a profile to specific users or
user classes. You can also specify which information on a profile you want users to
be able to change. For example, you can enable some users to change the start date
and number of periods for a deferral transaction, but not the deferral or recognition
accounts, and you can enable other users to change the deferral and recognition
accounts.

To set access to a deferral profile:

1. In the Deferral Profile Maintenance window, enter or select the profile you want
to set access for, and choose User Access to open the Profile User Access
window.

2. Indicate whether you want to grant access to the profile to the users you specify,
or to the user classes you specify.

3. Enter or select the user or user class you want to have access to the profile, and
mark the option to enable access.

If you’re setting access for a user, you can also indicate whether this profile is
the default profile for this user. If you mark this option, this profile will appear
automatically when the user uses deferral profiles during transaction entry.

4. Mark the types of information you want the user or members of the user class to
be able to edit during deferral transaction entry.

5. Choose Save to save the access information for this user or user class.

6. To set access to this profile for another user or user class, repeat steps 2 through
5.

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PART 2: BUDGETS
 Part 2: Budgets
You can create a budget in Microsoft Dynamics GP.

The following information is discussed:

• Chapter 12, “Budget overview,” outlines the features in Microsoft Dynamics GP

you can use to create and maintain budgets.

• Chapter 14, “Setting up budgets in Microsoft Dynamics GP,” describes how to

create a budget in Microsoft Dynamics GP using the Budget Maintenance
window or the Single-Account Budget Maintenance window.

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Chapter 12: Budget overview
You can use General Ledger to use the features of both Microsoft Dynamics GP and
Microsoft Excel to create and maintain budgets. You can create and modify budgets,
export them to Excel, or import them to Microsoft Dynamics GP.

For example, you can start building your budget in Microsoft Dynamics GP based
on your account framework, then export the budget to Excel to add formulas and
explore forecasting scenarios. Finally, you can import the budget into Microsoft
Dynamics GP to be used in the accounting system.

This information is divided into the following sections:

• Viewing a list of existing budgets

• Creating a new budget
• Opening an existing budget
• Deleting a budget

Viewing a list of existing budgets

You can use the Budget Selection window (Financial >> Cards >> Financial >>
Budgets) to view all budgets in the system, including budgets created in Excel and
imported into Microsoft Dynamics GP.

To change the order budgets are listed in the Budget Selection window, click the
arrow in the scrolling window title bar, then select to sort items by Budget ID or by
Description.

Creating a new budget

Use the Budget Selection window to select whether to create new budgets in
Microsoft Dynamics GP or in Microsoft Excel.

To create a new budget:

1. Open the Budget Selection window.
(Financial >> Cards >> Financial >> Budgets)

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2. Decide if the budget will be created in Microsoft Dynamics GP or in Excel.

• To create a budget in Microsoft Dynamics GP, choose New and select using
Microsoft Dynamics GP to open the Budget Maintenance window. Refer to
Chapter 14, “Setting up budgets in Microsoft Dynamics GP,” for more
information.

• To create a budget in Excel, choose New and select using Budget Wizard for
Excel. Refer to Chapter 13, “Setting up budgets in Microsoft Excel,” for
more information.

3. Choose New to open the Budget Maintenance window. Refer to Chapter 14,
“Setting up budgets in Microsoft Dynamics GP,” for more information.

You’ll use a different method to set up a single-account budget in Microsoft Dynamics

GP. Refer to Creating a single-account budget on page 82 for more information.

Opening an existing budget

You can open existing budgets in either Microsoft Dynamics GP or Microsoft Excel.

To open an existing budget:

1. Open the Budget Selection window.
(Financial >> Cards >> Financial >> Budgets)

2. Select a budget in the scrolling window.

• To open a budget with Excel, choose Open and select using Excel. The
Microsoft Dynamics GP budget must have an Excel file associated with it.

• To open a budget with Microsoft Dynamics GP, choose Open and select
using Microsoft Dynamics GP.

3. Choose Open.

Deleting a budget
You also can use the Budget Selection window to delete a budget. When you delete
a budget, accounts are removed from the specified budget ID and you’ll then have
an option to deleting the budget ID itself.

To delete a budget:
1. Open the Budget Selection window.
(Financial >> Cards >> Financial >> Budgets)

2. Highlight the budget in the scrolling window.

3. Choose Delete. An alert message appears, asking if you’re sure you want to
delete the budget. Choose Yes to delete the budget, or choose No to cancel the
process.

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Chapter 13: Setting up budgets in Microsoft Excel
You can use pre-existing budgets you’ve created in Microsoft Excel, or you can
create new budgets in Microsoft Excel using the Budget Wizard for Excel.

The wizard helps you choose the framework for the budget, the calculation method
for amounts, and the account types and ranges to include in the budget.

Later, you can import the budget into Microsoft Dynamics GP. For more
information about importing budgets from Microsoft Excel, see Chapter 15,
“Exporting and importing budgets.”

This information is divided into the following sections:

• Budget calculation methods

• Account types for budgets
• Creating a budget with the budget wizard
• Format requirements for budgets in Microsoft Excel

Budget calculation methods

After you’ve identified the budget, you can choose a calculation method for the
budget. The Budget Calculation Method window includes four calculation
methods. Although each budget calculation method is different, the steps for using
the wizard will be roughly the same for each one.

Open Year Percent This budget method calculates budget amounts based on a
percentage of actual amounts in an open year. For example, you can build a 2006
budget by selecting an open year, such as 2004, and entering a percentage by which
to increase or decrease the amounts for the new budget.

Other Budget Percent This budget method calculates budget amounts based
on a percentage of amounts in another budget. To use this method, select an existing
budget, indicate whether the amounts will be increased or decreased, and enter the
percentage by which to increase or decrease the amounts.

Historical Year Percent This budget method calculates budget amounts based
on actual account balances of a previous, historical year. The amounts can be
increased or decreased by a percentage you specify.

Blank Budget This budget method calculates no budget amounts, but provides
you with a blank Microsoft Excel budget spreadsheet. You can choose fiscal years
from which to pull actual amounts.

Account types for budgets

Three types of accounts are available for use in Microsoft Excel budgets: balance
sheet accounts, profit and loss accounts, and unit accounts.

Balance sheet accounts Balance sheet accounts are assets, liabilities, and
owner’s equity accounts. The amounts in these accounts would typically appear on
a company’s balance sheet.

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Profit and loss accounts Profit and loss accounts are for revenues and
expenses. These accounts represent the cash and assets going into and out of a
company’s general ledger.

Unit accounts Unit accounts do not track dollar amounts, but track other
amounts such as the number of employees. Unit accounts are used to accurately
distribute the revenue or expense from another account, set up to cover all the
employees, departments, or other units, in the unit account.

You can choose to include any or all of these account types. Depending on the
budget you want to create, you might not want to include all of the information. For
example, if you’re creating a budget to determine the total value of a business,
you’d want to include both balance sheet accounts and profit and loss accounts. If
you want to create a budget for a specific department, you’ll probably include profit
and loss accounts and unit accounts, but not balance sheet accounts.

As you use the wizard, you’ll choose specific accounts to include in your budget.

Creating a budget with the budget wizard

You can use Microsoft Dynamics GP to create a new budget in Microsoft Excel. The
new budget will be a new worksheet that can be part of an existing workbook, or a
new workbook. You can add budget amounts in this worksheet and import the
budget into Microsoft Dynamics GP.

This procedure uses the Open Year budget calculation method. Creating budgets using other
budget calculation methods is similar, but differences are noted.

To create a budget with the budget wizard:

1. Open the Budget Selection window.
(Financial >> Cards >> Financial >> Budgets)

2. Choose New and select using Budget Wizard for Excel to open the welcome
window.

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3. Choose Next to open the New Budget Information window.

4. Enter basic identifying information about the budget you are creating.

5. Select whether to base the budget on a fiscal year or a date range. If you base the
budget on a date range, specify a range that crosses one or more fiscal years. See
Calculating budgets that overlap fiscal years on page 78 for more information.

6. If you want to restrict access to the budget with a password, choose the padlock
icon button to open the User Password Setup window. If you don’t want to
restrict access to the budget, skip to step 7.

7. Enter a password and choose OK.

8. Choose Next to open the Budget Calculation Method window.

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9. Highlight a budget calculation method to view its description. When you have
selected the method you want to use, choose Next to open the Open Year
Percent window.

The following steps assume you selected the Open Year Percent budget
calculation method. All of the steps are essentially the same for each method,
except Blank Budget. Differences are noted in the following steps.

If you selected a budget method other than Open Year Percent, the name of the
window will be different. If you’re using the Other Budget Percent method, the
Other Budget Percent window opens. If you’re using the Historical Budget
Percent method, the Historical Year Percent window opens. Information in the
windows will be the same, except you will select a specific budget or a historical
year instead of an open year. You won’t see this window if you chose Blank
Budget, but will instead go to the next window, Actual Amounts Selection.

10. Select the open year you want to use as the basis for your new budget. If you’re
using another calculation method, choose an actual budget or historical year for
the other calculation methods.

11. Select the type of change to be made and enter a percentage of increase or
decrease. Press TAB to exit this field and enable the Next button. Choose Next to
open the Actual Amounts Selection window.

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12. Select the years with the amount information to use. A separate Microsoft Excel
worksheet will be created for each year you select

Worksheets will be in the same order you select them in the Actual Amounts Selection
window, so if you want them to appear in the workbook in a specific order, be sure to
select them in order.

When you have made your selections, choose Next to open the Account Types
window.

13. Select the account types to include in your budget. Choose Next to open the
Accounts window.

14. Select the accounts for the budget. You can add all accounts of the account type
you selected, or you can restrict the range of accounts.

Select a segment for sorting the accounts. Enter or select the starting and ending
segment numbers in the range, then choose Insert to add them to the scrolling
window.

GENERAL LEDGER 73
PA RT 2 B U D G E T S

Choose Next to open the Account Verification window.

15. Mark the accounts to include in the budget. All accounts will be marked, but
you can clear the option for any account to exclude it from the budget.

To add an account that isn’t displayed, choose Add Account. The Accounts
Lookup window will open. Select the account to add.

Choose Next to open the Workbook Selection window.

16. Select the workbook for your new budget worksheet. You can create a new
workbook or add to an existing one. Choose Next to open the Completing the
Budget Wizard for Excel window.

17. Review your selections, then choose Finish to complete the budget. The wizard
will build a new budget worksheet and fill the columns with budget amounts
from the accounts you selected, adjusted by the percentage you specified.

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Format requirements for budgets in Microsoft Excel

When a worksheet is created using the budget wizard or when an existing budget is
exported to Microsoft Excel, the worksheet must have the following standard
layout:

• Column A lists the accounts included in the budget, in view-only format.

• Column B lists the descriptions for the accounts, in view-only format.

• Column C lists the beginning balance budget amounts.

• Columns D and columns beyond list the period budget amounts. The amounts
and formulas in these columns can be changed.

• The first column after all the period amounts will total all of the period budget
amounts, in view-only format.

• The last row will display the totals for each period column in view-only format.

• The maximum number of fiscal periods (columns) you can use is 252, because
the first four columns are required for the account information and balance
amounts. (Excel allows a maximum of 256 columns in a spreadsheet.)

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Chapter 14: Setting up budgets in Microsoft
Dynamics GP
You can maintain an unlimited number of budgets in Microsoft Dynamics GP and
calculate the budgets using one of several different calculation methods. You can
create budgets for ranges of posting and unit accounts, or for single accounts. You
also can change or delete existing budgets and recalculate budget amounts.

This information is divided into the following sections:

• Budget calculation methods

• Calculating budgets that overlap fiscal years
• Creating a budget for a range of accounts
• Deleting a budget
• Creating a single-account budget
• Entering budget transactions
• Combining budgets in Microsoft Dynamics GP

Budget calculation methods

You can use one of seven calculation methods for budgets you create in Microsoft
Dynamics GP, and apply these methods to posting or unit accounts. You also can
choose whether your budget will include beginning balances. Each method’s
description includes information about the entries needed. The same calculation
methods are available whether you’re calculating a budget for a fiscal year or for a
range of dates; however, there are some differences to be aware of. See Calculating
budgets that overlap fiscal years on page 78 for more information.

Open Year Percent This budget method calculates budget amounts based on
the actual balances of any year that hasn’t been closed, increasing or decreasing
them by a specified percentage. Actual account balances won’t be affected.

To use this method, you must select the year to base the calculations on. Enter the
percentage to increase or decrease the amounts, or enter 0% to use the existing
account balances.

Other Budget Percent This budget method calculates budget amounts based
on another budget. You can copy amounts from another budget and then increase
or decrease them by a percentage you specify.

To use this method, you must enter the ID for the source budget and the percentage
to increase or decrease the amounts. You can enter 0% to use the existing budget
amounts.

Percent Change This budget method calculates budget amounts based on

amounts in a current budget. You can increase or decrease the amounts by a
percentage you specify.

For example, suppose your budget for an account includes $100 for the beginning
balance and $200 for each budget period. To decrease the budget by 20 percent, you
can choose Percent Change, enter the percentage and indicate that you want the
amounts decreased. The new budget amounts will include a beginning balance of
$80 and period amounts of $160.

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PA RT 2 B U D G E T S

Amount Change This budget method calculates budget amounts based on

amounts in a current budget. You can increase or decrease the amounts by a dollar
amount (for posting accounts) or quantity (for unit accounts) you specify.

To use this budget calculation method, enter the specified amount and indicate
whether the current budget amounts should be increased or decreased.

Set Amount This budget method calculates budget amounts based on a fixed
amount for each period included in the budget.

Enter the amount and indicate which periods you want to include. To include
beginning balance amounts in the budget calculation, mark the option to include
the beginning balances. If you mark this option, beginning balances for all balance
sheet accounts will be included.

Yearly Budget Amount This budget method calculates budget amounts and
divides them equally among all periods in the budget.

To use this method, enter the amount and specify the periods to be included in the
calculation. To include beginning balance amounts in the budget calculation, mark
the option to include the beginning balances. If you mark this option, beginning
balances for all balance sheet accounts will be included.

Historical Year Percent This budget method calculates budget amounts based
on a historical year’s actual balances, which can be increased or decreased by a
percentage you specify. Actual account balances aren’t affected. You can use this
method only if you are keeping account history.

To use this method, choose a year and enter the percentage increase or decrease.
Enter 0% if you want to use the existing account balances.

Calculating budgets that overlap fiscal years

You can create budgets for a range of dates that don’t match your fiscal year. This
can be useful if your organization receives grants that span multiple years, or that
cover a period of time that’s different from your fiscal year. Budgets based on a
range of dates can be created for either a single account or a range of accounts.

To base a budget on a range of dates, fiscal periods must be set up for the full period
that’s covered by the date range of the budget. For example, if you create a budget
for March 1, 2007 to August 31, 2009, you can’t save the budget if you haven’t
created fiscal periods through August 31, 2009.

After you’ve saved a budget, you can’t change the time period that it’s based on,
nor can you change the starting and ending dates when you’re basing the budget on
a date range.

The calculation methods that are available for budgets based on fiscal years also are
available for budgets based a date range. Some calculation methods involve

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copying budget amounts from one budget to another. The following table describes
how this process works when you’re basing a budget on a range of dates.

Calculation method Notes

Open year percent These calculation methods copy amounts from an existing budget
Other budget percent to the budget you’re setting up, and then calculate a specified
Historical year percent increase or decrease. The first period of the existing budget is
copied to the first period of the budget you’re setting up. The
second period of the existing budget is copied to the second period
of the new budget, and so on. If there are more periods in the
budget you’re setting up than in the existing budget being copied
from, the additional periods in the new budget will have a balance
of $0.
Yearly budget amount This calculation method allocates amounts evenly over all the
budget periods. If you’re basing a budget on a date range, the
number of periods might be more or less than the number of
periods in your fiscal year. The yearly budget amount is allocated
evenly among the periods in the date range regardless of the
number of periods in your fiscal year.

Creating a budget for a range of accounts

Use the Budget Maintenance window to create a budget for a range of posting and
unit accounts. You can view how the calculation has affected the accounts included
in the range, one account at a time. You can display the calculated amounts for each
account if you want to view the budget calculation for a single account.

To create a budget for a range of accounts:

1. Open the Budget Maintenance window.
(Financial >> Cards >> Financial >> Budgets >> New >> using Microsoft
Dynamics GP)

2. Enter or select a budget ID.

Use only alphanumeric characters in the budget ID.

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3. Select whether to base the budget on a fiscal year or a date range. If you base the
budget on a date range, specify a range that crosses one or more fiscal years. See
Calculating budgets that overlap fiscal years on page 78 for more information.

4. Choose the budget type: actual or preliminary.

Choose Actual if you know that the budget will be calculated correctly and that
you will not be making changes to the budget.

Choose Preliminary to experiment with budgets. You can change preliminary

budgets and then revert to the original version of the budget, but when you
change an actual budget, the change is permanent.

If you’re calculating a preliminary budget and you’ve decided that you’d like to save it,
make the changes permanent by choosing Actual and save the budget.

5. To restrict access to the budget, choose the password padlock icon button to
open the User Password Setup window. If you don’t need to restrict access to
the budget, skip to step 6.

6. Enter a password and choose OK.

7. Choose a budget year. If you’ve selected an existing budget and you change
budget years, some periods may not appear in the scrolling window.
Recalculate the budget before continuing.

8. Choose Ranges to open the Account Segment Ranges window.

If you don’t define a range, all your company's accounts will be included in the budget
calculation.

9. Enter or select the segment ID the range will be based on. Enter or select
beginning and ending account segments.

10. Choose Insert to insert the range into the Restrictions box. All accounts that
meet all restrictions you’ve entered will be included in the budget.

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To calculate actual budgets for single accounts, you might find it easier to use the
Single-Account Budget Maintenance window. (Preliminary budgets can’t be calculated
using the Single-Account Budget Maintenance window.) For more information, see
Creating a single-account budget on page 82.

11. Choose OK to return to the Budget Maintenance window.

12. Choose the Methods button to display the Budget Calculation Methods
window.

13. Select a calculation method, enter the necessary information and indicate if the
budget should include the beginning balance amounts. For more information
about calculation methods, see Budget calculation methods on page 77.

14. Choose Calculate to begin the calculation process. If a range hasn’t been
defined, all your company’s accounts will be included in the calculation.

To modify the amounts for an individual account, simply type over the calculated
amounts for each period.

15. If you want to save the budget information, choose Save.

If you’re calculating a preliminary budget and you’ve decided that you’d like to
save it, choose Actual before saving the budget information.

16. If you want to combine this budget with another, open the Combine Budgets
window by choosing the Combine Budgets button. For more information, see
Combining budgets in Microsoft Dynamics GP on page 85.

17. If needed, choose File >> Print or the printer icon button to view a Budget List.

Deleting a budget
You can use the Budget Maintenance window to delete a budget.

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To delete a budget:
1. Open the Budget Maintenance window.
(Financial >> Cards >> Financial >> Budgets >> New >> using Microsoft
Dynamics GP)

2. Enter or select a budget ID.

3. Choose Delete.

Creating a single-account budget

Use the Single-Account Budget Maintenance window to calculate, modify or delete
budgets for individual accounts, one account at a time. You can’t calculate
preliminary budgets using this window.

Only posting and unit accounts can be used when calculating budgets. You can’t create
budgets for variable and fixed allocation accounts.

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To create a single-account budget:

1. Open the Single-Account Budget Maintenance window.
(Financial >> Cards >> Financial >> Account >> Budget button)
(Financial >> Cards >> Financial >> Unit Account >> Budget button)

2. Enter or select the account and budget ID.

3. Select whether to base the budget on a fiscal year or a date range. If you base the
budget on a date range, specify a range that crosses one or more fiscal years. See
Calculating budgets that overlap fiscal years on page 78 for more information.

If you’ve selected an existing budget and you change budget years, some periods might
not appear in the scrolling window. Recalculate the budget before continuing.

4. To restrict access to the budget, choose the password padlock icon button to
open the User Password Setup window. If you don’t need to restrict access to
the budget, skip to step 6.

5. Enter a password and choose OK.

6. Select a calculation method and indicate if the budget should include the
account’s beginning balance. For more information about calculation methods,
see Budget calculation methods on page 77.

7. Choose Calculate to begin the calculation process. When the budget has been
calculated, the amounts will be displayed.

8. To make changes to the budget amounts without recalculating, type over the
existing amounts.

9. To save the budget, choose Save.

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10. To remove the selected account from the budget, choose Delete.

11. Choose File >> Print or the printer icon button to view a Detailed Budget report.

Entering budget transactions

Use the Budget Transaction Entry window to create transactions that, when posted,
increase or decrease the budget for one or more accounts for specific periods.
Amounts are displayed on a period-by-period basis. You can also choose to view
period balance amounts, which displays the cumulative budget and budget
transaction for each period and all previous periods. A single journal entry can
contain adjustments to multiple accounts.

To enter a single budget transaction:

1. Open the Budget Transaction Entry window.
(Financial >> Transactions >> Financial >> Budget Transactions)

2. Enter or select a budget journal entry.

3. Enter or select a batch ID for the journal entry.

4. Enter or select a transaction date for the journal entry.

5. Enter or select a budget ID.

6. Enter a reference for the journal entry. References can be any combination of
alphanumeric symbols to help you identify the journal entry.

7. Enter or select an account for which you want to adjust the budget.

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8. Enter the adjustment amount for each period.

9. Choose File >> Print or the printer icon button to view a Budget Transaction
Edit List report.

To enter multiple budget transactions:

1. Perform the steps in To enter multiple budget transactions:.

2. Choose Ranges to open the Account Segment Ranges window.

If you don’t define a range, only the single account that is displayed will be included in
the budget calculation. For information on the Account Segment Ranges window,
choose the Help button in that window, or see Creating a budget for a range of accounts
on page 79.

3. Select a method for calculating adjustments and indicate if the budget should
include the beginning balance amounts. For more information on calculation
methods, see Budget calculation methods on page 77.

4. Choose Calculate to begin the calculation process.

Combining budgets in Microsoft Dynamics GP

Use the Combine Budgets window to simplify the process of combining General
Ledger budgets. This is useful when multiple departments in your organization
create their own budgets, which are then consolidated into a single budget. You can
combine only two budgets at a time with this window, but you can repeat the
process so that many budgets are combined into one.

To combine multiple budgets, first combine two budgets, and then merge others
into the new, consolidated budget.

Any budget that is added to the new, consolidated budget must have a date range
that matches the consolidated budget.

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To combine two budgets:

1. Open the Combine Budgets window.
(Financial >> Cards >> Financial >> Budgets >> Combine Budgets button)

2. Enter or select a master budget ID. This is the ID for the consolidated budget
that will receive other budgets.

If the budget ID doesn’t exist, you must create it in the Budget Maintenance
window. You cannot create a budget in the Combine Budgets window.

3. Enter or select a budget ID to combine with the master budget.

4. If you want to delete the budget you are merging into the master budget, mark
the Delete Budget after it is combined check box.

5. To combine the two budgets, choose Process.

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Chapter 15: Exporting and importing budgets
If you already have created a budget in Microsoft Dynamics GP, you can export it to
Microsoft Excel to take advantage of the calculations and formulas available in that
application. You can then import the budget into Microsoft Dynamics GP when
you’ve finished making changes. With Microsoft Dynamics GP, you can import a
budget you’ve created from scratch in Microsoft Excel, provided the budget’s
columns are formatted correctly. Refer to Format requirements for budgets in Microsoft
Excel on page 75 for more information.

This information is divided into the following sections:

• Exporting a budget to Microsoft Excel

• Preparing a budget for import from Microsoft Excel
• Importing a budget from Microsoft Excel

Exporting a budget to Microsoft Excel

Exporting budgets to Microsoft Excel transfers data from the following Microsoft
Dynamics GP budget fields to an Excel worksheet:

• Budget ID
• Budget description
• Account numbers
• Account descriptions
• Periods
• Budget amount for each period for each account

The information will be arranged in a worksheet. The name of the worksheet will be
the budget description.

When you export the budget to an existing workbook, the name of the worksheet
tab will be budget ID. When you export to a new workbook, the default file name
will be the budget ID. The column headers will be automatically created, and based
on the number of periods created during Fiscal Period Setup. All of the period
amounts will be filled into the columns, as well.

Once the budget is exported, you can adjust the layout of the worksheet, as well as
the budget amounts.

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To export a budget to Microsoft Excel:

1. Open the Budget Selection window.
(Financial >> Cards >> Financial >> Budgets)

2. Highlight a budget. Choose Excel and select Export to Excel to open the Export
Budget to Excel window.

3. Select a destination for the budget. The destination can be a new workbook or
an existing one. If you select an existing workbook, the budget will be added on
a new worksheet in the workbook.

If your worksheet has the same name—the same Budget ID—as an existing worksheet
in the workbook you’re exporting to, the existing worksheet will be overwritten. You
won’t be able to cancel the export process.

4. Choose OK to complete the export process.

If you export the budget to a new workbook, you’ll be prompted to enter a

name and location for the workbook. When the process is complete, the budget
will be displayed in Microsoft Excel.

Preparing a budget for import from Microsoft Excel

Before you can import a Microsoft Excel budget into Microsoft Dynamics GP, it
must be properly formatted. Refer to Format requirements for budgets in Microsoft
Excel on page 75 for more information.

To create a Microsoft Excel worksheet with the correct format, you can use the budget wizard
to create a blank worksheet with the accounts you specify.

The import process creates a budget with periods corresponding to the period
columns in the Microsoft Excel budget. If the number of periods in the Microsoft
Dynamics GP budget doesn’t match the number of periods in the Microsoft Excel

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budget, you’ll be prompted to add periods to the Microsoft Excel budget before
completing the import. The amount from each period cell in Microsoft Excel will be
transferred to Microsoft Dynamics GP. Once the budget is imported, you can adjust
the amounts as needed.

Importing a budget from Microsoft Excel

You can import Microsoft Excel budget information into an existing Microsoft
Dynamics GP budget, or into a newly created Microsoft Dynamics GP budget.

If you choose to import the Microsoft Excel budget worksheet into an existing Microsoft
Dynamics GP budget, all of the amounts in the Microsoft Dynamics GP budget will be
overwritten with the amounts from the worksheet.

When you start the budget import process, a series of windows will open in which
you can specify information about the budget before it is created. The windows are
basically the same whether you choose to import into a new or existing budget.

However, if you choose to import into a new budget, you’ll see one additional
window, the New Budget Information window. Use that window to enter the
budget ID, description, and fiscal year information.

The following procedure assumes you’re importing to create a new budget. The
steps will remain the same when you choose to import to an existing budget, except
that you will skip step 5.

To import a budget from Microsoft Excel:

1. Open the Budget Selection window.
(Financial >> Cards >> Financial >> Budgets)

2. Choose Excel and select Import from Excel to open the Welcome to the Budget
Wizard for Excel window.

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3. Choose Next to open the Import Budget window.

4. Decide if the imported budget should be a new budget or if it should overwrite

an existing budget.

• To import the Microsoft Excel budget worksheet to a new budget, select A

new Microsoft Dynamics GP budget and choose Next.

• To overwrite an existing budget, mark An existing Microsoft Dynamics GP

budget and enter or select the budget. Choose Next and continue with step
8.

5. If you’re creating a new budget, the New Budget Information window opens.
Enter basic identifying information about the budget you’re creating.

6. To restrict access to the budget with a password, choose the padlock icon button
to open the User Password Setup window. If you don’t want to restrict access to
the budget, skip to step 8.

7. Enter a password and choose OK.

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8. Choose Next to open the Excel File Selection window.

9. Enter or select the name of the Excel file to import, then select the specific
worksheet to import. Choose Next to open the Completing the Budget Wizard
for Excel window.

10. Choose Finish to complete the import process.

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PART 3: TRANSACTIONS
 Part 3: Transactions
Transaction procedures provide step-by-step instructions for completing General
Ledger accounting tasks with Microsoft Dynamics GP.

The following information is discussed:

• Chapter 16, “Multicurrency transactions,” explains how to choose the currency

for entering transactions.

• Chapter 17, “Batches,” explains how to group transactions into batches.

• Chapter 18, “Standard and reversing transactions,” explains standard and

reversing transactions, the most common transactions in your system.

• Chapter 19, “Clearing transactions,” defines and explains how to use clearing
transactions.

• Chapter 20, “Quick journal transactions,” explains quick journals, a time-saving

journal entry that doesn’t require batches.

• Chapter 21, “Transaction deferrals,” describes the methods available for

deferring revenues or distributing expenses over a specified period.

• Chapter 22, “Posting,” describes posting, the process of transferring your

temporary transactions to the company’s permanent records.

• Chapter 23, “Correcting transactions,” explains how to correct transactions,

whether or not the transaction has been posted.

• Chapter 24, “Matching transactions,” describes the process of linking related

transaction distributions from different journal entries.

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Chapter 16: Multicurrency transactions
If you’re using Multicurrency Management with General Ledger, you can choose
the currency you want to use when entering transactions.

For information about setting up your financial system to use multiple currencies,
including the euro, refer to the Multicurrency Management documentation.

This information is divided into the following sections:

• Viewing multiple currencies

• Exchange rate and document date
• Multicurrency account distributions

Viewing multiple currencies

You can choose to view multicurrency transactions in the originating or the
functional currency. Choose View >> Currency >> Functional or Originating while
entering a transaction. The option will be saved on a per user, per window basis.

You also can use the Currency list button in the windows that support changing the
currency view.

The View menu and currency list button are available in the following windows:

• Transaction Entry
• Summary Inquiry
• Detail Inquiry
• Journal Entry Inquiry
• History Summary Inquiry
• History Detail Summary

The first time you open these windows after registering Multicurrency
Management, all the transactions will be displayed in the originating currency. If
you change the currency view, that option will be the default view the next time you
open that window.

Exchange rate and document date

If a transaction’s currency ID is not in the functional currency, a rate type and
associated exchange rate table are assigned to the transaction. The rate type is the
default rate type for the Financial series specified in the Multicurrency Setup
window. You also can choose the currency expansion button to open the Exchange
Rate Entry window to view or modify the default exchange rate.

The document date assigned to a transaction determines which exchange rate is

used, based on the currency ID and associated rate type that’s entered for the
transaction. Each time you change the document date on a multicurrency
transaction, the system searches for a valid exchange rate. If a valid rate doesn’t
exist, you can enter an exchange rate using the Exchange Rate Entry window. If
you’ve entered a General Ledger posting date that’s different from the document
date, the exchange rate expiration date must be after the posting date.

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Multicurrency account distributions

For multicurrency transactions, distribution amounts are displayed in both the
functional and originating currencies. However, you can change only the
originating amounts.

When you’re entering a multicurrency transaction, the originating debit and credit
amounts must balance. If the functional equivalents don’t balance, the difference is
posted automatically to a Rounding Difference account and a distribution type of
Round identifies the distribution amount.

For example, assume you’ve entered a transaction in the euro currency, with a
purchase amount of 28,755.42 EUR, a trade discount of 586.84 EUR, a discount
available of 1544.33 EUR and the exchange rate is 1.0922. The distributions would
be calculated as follows:

Account Euro debit Euro credit US Dollars US Dollars

debit credit
Accounts Payable 28,755.42 EUR $31,406.67
Trade Discount 586.84 EUR $640.95
Discount 1544.33 EUR $1686.72
Available
Accrued 30,886.59 EUR $33,734.33
Purchases
Totals 30,886.59 EUR 30,886.59 EUR $33,734.34 $33,734.33
Rounding $0.01
Difference
Totals 30,886.59 EUR 30,886.59 EUR $33,734.34 $33,734.34

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Chapter 17: Batches
General Ledger transactions can be entered individually or in batches. A batch is a
group of transactions identified by a unique name or number. By entering and
posting transactions in batches, you can group similar transactions during data
entry and review them before posting. More than one person can enter transactions
in the same batch, but not at the same time. Also, a batch can’t be posted if anyone is
making changes to it.

This information is divided into the following sections:

• Creating a batch
• General Ledger batch approval workflow
• Modifying or deleting a batch

Creating a batch
Use the Batch Entry window to create batches. A batch is a group of transactions
identified by a unique name or number. If you’ve decided to enter transactions in
batches, they can be posted using the batch, series, or master posting procedures.

For more information about batch posting, see Chapter 22, “Posting.”

To create a batch:
1. Open the Batch Entry window.
(Financial >> Transactions >> Financial >> Batches)

2. Enter or select a batch ID to identify the batch. Batches entered in different

transaction entry windows might have the same ID. If you aren’t sure which
batch to select, you can use the Batch ID lookup window to view the origins of
transactions within each batch.

3. Select a batch origin. You can select General Entry, Clearing Entry, or Budget
Transactions. Once you’ve saved the batch, you can’t change the origin.

4. Enter a batch comment, such as a brief description of the transactions that will
be entered in the batch.

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5. Select a frequency. If you chose a frequency other than Single Use, enter the
number of recurring postings. If you want the batch to remain in the system
indefinitely, enter zero in the Remaining Posting field.

If you choose a frequency of miscellaneous, enter the number of recurring

postings and the days to increment.

6. To print the breakdown allocation accounts on the edit lists, mark the Break
Down Allocation option.

7. To clear the distribution amounts for recurring batches after posting, mark the
Clear Recurring Amounts After Posting option.

8. You can define batch entry requirements. Refer to the System User’s Guide for
information about batch requirements and approvals.

If the Allow Negative Debits and Credits in General Ledger option is marked in the
Company Setup Options window, you can enter negative amounts in the batch control
total field.

9. Choose Save to save the batch or choose Transactions to open the Transaction
Entry window, where you can enter transactions in the batch.

10. You can choose File >> Print or the printer icon button to verify the accuracy of
the transactions you’ve entered before posting.

11. If you’re using Workflow, submit the batch for approval if needed. See General
Ledger batch approval workflow for more information.

General Ledger batch approval workflow

If your company uses the Workflow feature among its business controls, batches
might have to be approved before posting. The rules for approving batches can
defined to fit your organization’s needs. Multiple approvers might be required, or
approval might not be required for batches with few transactions or small currency
amounts. When a batch is ready to be approved, approvers can be notified and the
batches can be approved, using Outlook®, Microsoft Dynamics GP, or Internet
Explorer®. After a batch is approved, it can be posted. For more information about
Workflow, see the System Setup Guide (Help >> Printable Manuals >> select
System >> select System Setup Guide) or the Workflow Administrator’s Guide
(Help >> Printable Manuals >> select System >> select Workflow Administrator’s
Guide).

Before you can use the batch approval workflow for General Ledger, you must turn
off the Require Batch Approval feature in Microsoft Dynamics GP. To do so, open
the Posting Setup window (Administration >> Setup >> Posting >> Posting) and
select the Financial series. Unmark the Require Batch Approval option for the
General Ledger and Clearing Entry origins.

Modifying or deleting a batch

Use the Batch Entry window to modify or delete a batch. You can change or delete
unposted batches at any time. Recurring batches are deleted after the batch has been
posted the number of times you specify in the Recurring Posting field.

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If you are using Workflow you must resubmit the batch if you modify or delete any
transactions in an approved batch.

See Correcting an unposted transaction on page 129 for information about changing
the transactions in a batch.

To modify or delete a batch:

1. Open the Batch Entry window.
(Financial >> Transactions >> Financial >> Batches)

2. To modify the batch, replace the incorrect information with correct information.
Choose Save to save the changes or resubmit the batch for approval, if you are
using Workflow. .

3. To delete the batch, choose Delete and close the window.

To modify a batch using the action pane:

1. In the navigation pane, choose the Financial button, then choose the General
Ledger Batches list.

2. Mark a batch to modify.

3. In the new group, choose Edit to open the Batch Entry window.

4. To delete a batch, choose Delete.

5. To correct the batch, replace the incorrect information with the correct
information. Choose save to save the changes or resubmit the batch for
approval, if you are using Workflow.

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Chapter 18: Standard and reversing transactions
Standard transactions are entered and posted once. If they are assigned to a
recurring batch, standard transactions can be posted periodically, such as weekly or
monthly, or on a specific date, and then automatically or manually deleted from
Microsoft Dynamics GP.

A reversing transaction reverses the distributions—debit and credit entries—of a

previous transaction. Generally speaking, entries that involve the accrual of assets
(such as unbilled revenues) or the accrual of liabilities (such as salaries) might be
reversed because they result in a future cash receipt or payment. Examples of such
accruals include salaries that haven’t been paid or revenues that haven’t been billed.

When entering transactions, transaction information is collectively referred to as

audit trail information. For example, the journal entry number, transaction date,
source document code, and reference appear on cross-reference reports. This
information helps to trace the history of a specific transaction and might be used by
external auditors to verify the accuracy of your records and record-keeping
processes.

This information is divided into the following sections:

• Entering a standard or reversing transaction

• Voiding or deleting a saved standard or reversing transaction
• Understanding Value-Added Taxes
• Calculating and distributing tax

Entering a standard or reversing transaction

Use the Transaction Entry window to enter standard and reversing transactions. For
more information about posting, see Chapter 22, “Posting.”

To enter a standard or reversing transaction:

1. Open the Transaction Entry window.
(Financial >> Transactions >> Financial >> General)

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2. Enter a journal entry number or accept the default number.

3. If you’re using batches, enter or select a batch. If you are using Workflow and
are not allowed to approve batches, don't assign the cash receipt to a batch that
is pending approval. If you do, you won't be able to enter cash receipt
information.

4. Enter a transaction type: standard or reversing.

5. Enter the transaction date, source document code, reference, and currency ID. If
the transaction is reversing, also enter a reversing date.

6. Select the reporting ledger type to which the transaction should apply: Base,
IFRS, or Local. Note that the reporting ledger type is available only when you
choose to allow reporting ledgers in the General Ledger Setup window.

7. Enter accounts and transaction amounts.

Transactions can contain either posting or unit accounts. If you enter a unit
account—which tracks nonfinancial amounts such as head count or square
footage—on a transaction, a debit entry will increase the balance of the selected
unit account and a credit entry will decrease the balance. Amounts posted to
unit accounts won’t have any effect on the transaction total.

If the Allow Negative Debits and Credits in General Ledger option is marked in the
Company Setup Options window, you can enter negative transaction amounts.

If your transactions include tax, refer to Understanding Value-Added Taxes on

page 103 and Calculating and distributing tax on page 103 for more information.

8. If you’re entering transactions individually—without a batch—choose Post.

We recommend that you back up company data before posting. If power fluctuates or
some other problem occurs, you can restore your data and begin the posting process
again. For more information about making backups, refer to the System Administrator’s
Guide (Help >> Contents >> select System Administration).

When you close the Transaction Entry window, the General Posting Journal
might be printed for all transactions posted using the transaction-level method,
depending on how you set up your system.

9. If you’re entering transactions in a batch, choose Save.

Voiding or deleting a saved standard or reversing

transaction
You can use the Transaction Entry window to void or delete transactions that have
been saved, but not posted.

By default, you can delete saved transactions. However, you can change default
settings so that you must void saved transactions instead of deleting them. See
Setting up default entries and preferences on page 9 for more information.

You can void transactions originating in other modules if you marked the Voiding/
Correcting of Subsidiary Transactions option in the General Ledger Setup window.
See Setting up default entries and preferences on page 9 for more information.

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To void or delete a saved standard or reversing

transaction:
1. Open the Transaction Entry window.
(Financial >> Transactions >> Financial >> General)

2. Enter or select the journal entry number for the transaction you’re voiding or
deleting.

3. Choose Void to void the transaction, or Delete to delete the transaction.

4. Close the window.

Understanding Value-Added Taxes

General Ledger accommodates the different tax rates on goods and services sold in
different cities, states, provinces, and countries/regions. These taxation methods
include Value-added Taxes (VAT). VAT is a system of input taxes due on purchases
and output taxes due on sales.

Each country/region that uses VAT has its own rate of taxation and often has
different rates for different goods or zones. VAT is collected on sales. Any credit for
tax paid on purchases also is tracked. The difference is remitted to the taxation
authority.

VAT entries in General Ledger transactions are used to compile the Detail Tax
Report, which displays the total sale or purchase amount, the total tax amount, the
total EU sale or purchase amount, and the total EU tax.

The goods value is the same as the net purchase amount, which includes freight and
miscellaneous charges, if taxable, and any trade discount. If several different tax
details are used for a transaction, you must distribute the total goods value amount
to all appropriate tax details and enter the tax in the Tax Amount field. This
requirement applies even if no tax will be paid on the entire transaction or on
individual items included on the transaction.

For example, you’re entering a purchase amount of £500. However, £250 of this
purchase is exempt from tax. To distribute the exempt portion of the transaction,
enter or select the appropriate tax-exempt detail. Then, enter a goods value of £250
for the tax-exempt detail and the remaining taxable goods value of £250 for the
input tax detail. The tax amount automatically will be adjusted to reflect the
reduction in the taxable goods value.

For information about setting up your system to calculate VAT, see the System
Setup instructions (Help >> Contents >> select Setting Up the System).

Calculating and distributing tax

Use the Tax Entry window to enter tax information for a standard General Ledger
transaction if you’ve marked the Calculate Taxes in General Ledger option in the
Company Setup Options window.

Use General Ledger to enter taxable transactions that can’t be entered in the
Payables Management, Receivables Management, Purchase Order Processing,
Invoicing, or Sales Order Processing modules.

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For example, a taxable expense reimbursement to an employee should be entered in

General Ledger. You could enter this transaction in Payables Management, but it
would require that the employee be set up as a vendor. General Ledger also can be
used to make corrections to tax transactions from other modules.

If you’ve registered Multicurrency Management, use the View menu or Currency

list button in the Transaction Entry window to choose to view transactions in the
originating or the functional currency.

To calculate and distribute tax:

1. Open the Transaction Entry window.
(Financial >> Transactions >> Financial >> General)

2. Enter the transaction.

Be sure to select a transaction type of Standard. You cannot enter tax information for
Intercompany, Reversing, Clearing, or Quick Journal entries.

A journal entry that contains tax records can be saved in a single-use or

recurring batch.

When a journal entry that contains tax records is deleted, all tax information
associated with the transaction is removed.

3. Choose Tax Entry to open the Tax Entry window.

4. Decide if the transaction is a debit or a credit.

5. Enter or select the account number of the account.

6. Enter an amount for the transaction. This is the sales or purchase amount that
tax calculations are based on. Each time the amount is changed, the taxable
sales/purchases amount and tax amount are recalculated.

7. Enter or select a tax detail. A taxable sales/purchases amount and tax amount
are automatically calculated when the tax detail is selected, based on the
amount entered, the tax type, and tax percent for the tax detail. Each time the
tax detail is changed, the taxable sales/purchases amount and tax amount are
recalculated.

Any of the six types of tax details can be selected, but only percent of sale/
purchase, percent of sale/purchase with taxable tax, and tax included with item
price tax details calculate a tax amount. Tax details that use the percent of cost,

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flat amount, or percent of another tax detail can be selected, but will calculate a
tax of $0.00. The taxable sales/purchases amount is set to the amount if one of
these tax details is selected.

8. In the Distribution Reference field, you can enter a description for the new
General Ledger distributions. The Reference entry from the Transaction Entry
window is the default Distribution Reference.

9. Choose Create to create tax distributions. The Tax Entry window closes and the
Transaction Entry window is updated.

Two distributions are created in Transaction Entry. The first distribution is the
taxable sales/purchases amount portion of the tax record, and the second is the
tax amount portion. Only the account numbers and distribution references can
be edited for the distributions; you can't edit the debit or credit amounts.

The debit or credit amounts for the taxable sales/purchases amount and tax amount
distributions can be negative. If negative amounts are entered in the Tax Entry window,
the taxable sales/purchases amount and tax amount distributions also will be negative.

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Chapter 19: Clearing transactions
Clearing transactions are useful when accounts are obsolete, but can’t be deleted
because they have activity for open periods.

This information is divided into the following sections:

• Understanding clearing transactions

• Entering a clearing transaction
• Voiding or deleting a saved clearing transaction

Understanding clearing transactions

When you’re no longer using an account and want to transfer its balance to another
account, you need to make a clearing transaction. With a clearing entry, the account
balance will be transferred, the transaction activity will remain with the original
account and the account remains active.

If you’re using Multicurrency Management, you cannot use clearing transactions.

You also can use clearing transactions for accounts with balances that periodically
are cleared to other accounts, such as departmental sales accounts, which are
cleared to controlling sales accounts at the end of each accounting period. You’ll still
have a record of the account’s activity, and you can reuse the account later for the
next period.

When entering clearing transactions, if you select the year-to-date balance, the
system transfers the year-to-date balance through the period in which the
transaction date occurs. For example, if the transaction date is January 15, 2004, all
of the January transactions are cleared, even if there are transactions after January
15, 2004, in that period. If you select the period balance, the system transfers the
entire balance for the period in which the transaction date falls. You can post
clearing transactions only to open years. You can’t post clearing transactions that
fall within a historical year.

If the account you enter is a posting account, the offsetting account also must be a
posting account or a posting allocation account. The same principle applies to unit
accounts: if the account to be cleared is a unit account, the offsetting account must
be a unit account or unit allocation account.

Entering a clearing transaction

Use the Clearing Entry window to enter clearing transactions. You can post clearing
transactions only to open years. You can’t enter clearing transactions for a historical
year.

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To enter a clearing transaction:

1. Open the Clearing Entry window.
(Financial >> Transactions >> Financial >> Clearing)

2. Enter a journal entry number or accept the default number.

3. If you’re using batches, enter or select a batch.

4. Enter the transaction date, source document code, and reference.

5. Mark Year-to-Date or Trx Period to indicate which periods’ account balances

will be cleared during posting.

6. Enter or select an account to clear and an offset account that will receive the
cleared account’s balance.

7. If you’re entering transactions individually, choose Post.

We recommend that you back up company data before posting. If power fluctuates or
some other problem occurs, you can restore your data and begin the posting process
again. For more information about making backups, refer to the System Administrator’s
Guide (Help >> Contents >> select System Administration).

When you close the Clearing Entry window, the Clearing Posting Journal will
be printed for all transactions posted using the transaction-level method.

See Chapter 22, “Posting,” for information about posting transactions in a

batch.

8. If you’re entering transactions in a batch, choose Save.

Voiding or deleting a saved clearing transaction

You can use the Clearing Entry window to void or delete transactions that have
been saved, but not posted.

By default, you can delete saved transactions. However, you can change default
settings so that you must void saved transactions instead of deleting them. See
Setting up default entries and preferences on page 9 for more information.

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To void or delete a saved clearing transaction:

1. Open the Clearing Entry window.
(Financial >> Transactions >> Financial >> Clearing)

2. Enter or select the journal entry number for the transaction you’re voiding or
deleting.

3. Choose Void to void the transaction, or Delete to delete the transaction.

4. Close the window.

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Chapter 20: Quick journal transactions
Quick journals provide a method of time-saving journal entry that doesn’t require
batches.

This information is divided into the following sections:

• Understanding quick journal transactions

• Entering a quick journal transaction
• Voiding or deleting a saved quick journal transaction

Understanding quick journal transactions

Transactions that require many different entries can be simplified using the quick
journal method. For example, payroll transactions often require many entries, such
as debits to employer’s tax expense and wages expense, broken down by
department. Instead of entering nearly a dozen accounts, you can set up a quick
journal and enter only the transaction amounts. The total of the amounts you enter
will be offset to the Cash account. For transactions that recur and affect many
accounts but are offset to a single account, Quick Journal Entry can save data entry
time.

Quick journals are set up in the Quick Journal Setup window. See Chapter 10,
“Quick journal transactions setup,” for more information.

If you’re using Multicurrency Management, you can enter quick journals only in
your company’s functional currency.

The amounts entered in a quick journal can be both debits and credits. The
difference between total debits and credits is the amount applied to the offset
account. Unlike standard transactions entered individually without a batch, quick
journal transactions can be saved and posted at a later date.

You also can enter a control balance at any point during the data entry process to
double-check totals. The control balance you enter will be compared with the total
of all debit and credit amounts entered for the distribution accounts. If the two
balances don’t match, you won’t be able to post the quick journal transaction.

Quick journal entries can be posted individually, or by using the Series Posting or
Master Posting window. If you select series or master posting, the quick journal ID
will be used as an identifier, similar to batch ID; all journal entries for a single quick
journal are posted when you select the quick journal and choose Post.

Entering a quick journal transaction

Use the Quick Journal Entry window to enter transactions you've identified as good
candidates for quick journal entry. Quick journal transactions always are assigned
to the Base reporting ledger. For more information on reporting ledgers, see Setting
up default entries and preferences on page 9.

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To enter a quick journal transaction:

1. Open the Quick Journal Entry window.
(Financial >> Transactions >> Financial >> Quick Journal)

2. Enter a journal entry number or accept the default.

3. Enter or select a quick journal ID.

Once you’ve chosen a quick journal, the description, reference, offset account,
source document code, breakdown allocations, and accounts you entered
during the setup process appear as defaults.

If you enter only unit accounts in the scrolling window, the offset account’s balance
isn't updated when you post the transaction.

You can add or delete accounts that appear as default accounts, but to
permanently change the quick journal setup, you must use the Quick Journal
Setup window.

A default offset account is displayed, but you can select another offset account if
you marked the Allow Override option during the setup process. Refer to
Setting up a quick journal on page 53 for more information.

4. Enter or accept the default transaction date, source document code, reference,
and offset account.

5. If you want to confirm your entries, enter a control balance. The control balance
will be compared with the total of all debit and credit amounts entered for the
distribution accounts. If the two balances don’t match, you won’t be able to
post.

6. Enter debits and credits and double-check the balance.

You don’t have to enter amounts for all accounts listed in the Quick Journal Entry
window. Accounts can have zero balances and the transaction will still be posted.
However, the actual amounts must equal the control total you’ve entered before you can
post the transaction.

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7. Choose File >> Print or the printer icon button to verify your entries with a
Quick Entry Edit List, before posting.

We recommend that you back up company data before posting. If power fluctuates or
another problem occurs, you can restore your data and begin the posting process again.
For more information about making backups, refer to the System Administrator’s Guide
(Help >> Contents >> select System Administration).

8. Save or post the entry.

9. Depending on the way your system has been set up, the Quick Journal Posting
Journal might be printed automatically when you post.

See Chapter 22, “Posting,” for information about posting transactions.

Voiding or deleting a saved quick journal transaction

You can use the Quick Journal Entry window to void or delete transactions that
have been saved, but not posted.

By default, you can delete saved transactions. However, you can change default
settings so that you must void saved transactions instead of deleting them. See
Setting up default entries and preferences on page 9 for more information.

To void or delete a saved quick journal transaction:

1. Open the Quick Journal Entry window.
(Financial >> Transactions >> Financial >> Quick Journal)

2. Enter or select the journal entry number for the transaction you’re voiding or
deleting.

3. Choose Void to void the transaction, or Delete to delete the transaction.

4. Close the window.

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 Chapter 21: Transaction deferrals
You can defer transaction distributions for transactions originating from General
Ledger, Receivables Management, Sales Order Processing, Payables Management,
or Purchase Order Processing. You can enter the information for each deferral
transaction individually, or you can use deferral profiles to speed data entry by
applying the same default settings to similar deferral transactions.

This information includes the following sections:

• Deferring a transaction distribution

• Deferring a transaction distribution using a profile
• Entering a General Ledger deferral transaction
• Entering a General Ledger deferral transaction using a profile
• Creating a retroactive deferral transaction
• Posting deferral transactions
• Voiding a deferral transaction

Deferring a transaction distribution

Use the Deferral Entry window to defer a transaction distribution for transactions
originating from Receivables Management, Payables Management, Sales Order
Processing, Invoicing, or Purchase Order Processing. For information about
deferring General Ledger transactions, see Entering a General Ledger deferral
transaction on page 119 and Entering a General Ledger deferral transaction using a profile
on page 120.

When you use the Deferral Entry window, you will specify the deferral and
recognition accounts to use, the beginning and end dates for the deferral, and the
method for calculating the deferred amounts. If you want to ensure that similar
transactions are entered with consistent information, you can use a deferral profile.
For more information, see Deferring a transaction distribution using a profile on
page 117.

You can open the Deferral Entry window from the following distribution entry
windows.

Module Distribution entry window Navigation

Receivables Management Sales Transaction Distribution Entry Sales >> Transactions >> Transaction Entry >> Enter or select
a customer ID >> Distribution button
Sales Order Processing Sales Distribution Entry Sales >> Transactions >> Sales Transaction Entry >> Enter or
select a document number for an invoice or return >>
Distributions button
Invoicing Invoice Distribution Entry window Sales >>Transactions >> Invoice Entry >> Enter or select a
document number >> Distributions button
Payables Management Payables Transaction Entry Distribution Purchasing >> Transactions >> Transaction Entry >> Enter or
select a voucher number >> Distributions button
Purchase Order Processing Purchasing Distribution Entry Purchasing >> Transactions >> Receivings Transaction
Entry >> Enter or select a receipt number >> Distributions
button

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To defer a transaction distribution:

1. Enter or select a transaction, and open the appropriate distribution window. For
example, if you wanted to defer the revenue from a transaction entered in the
Receivables Transaction Entry window, you would enter the transaction
amounts, and choose Distribution to open the Sales Transaction Distribution
Entry window.

2. In the distribution entry window, select the distribution you want to defer.

Depending on how your default posting accounts are set up, you may need to
change the account to a deferral account. For example, if you’re deferring the
revenue for a prepaid maintenance contract, you could change the SALES
posting account to the account you use for deferred revenue.

3. From the Additional menu, choose Deferral to open the Deferral Entry window.

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Enter the beginning and end of the period, and select the method to use for
apportioning the deferred amounts over that period.

• The Days In Period method apportions the amount based on the number of
days in a fiscal period.

• The Equal Per Period method allocates an equal amount per fiscal period.

• The Miscellaneous method allows you to specify the length of the periods,
and allocates an equal amount per period.

4. If you’re using the Balance Sheet deferral posting method, enter or select the
recognition account for the deferral. If you’re using the Profit and Loss deferral
posting method, enter or select the additional deferral and recognition
accounts.

5. When you’ve entered this information, the individual deferral transactions will
be calculated and appear in the lower scrolling window. If necessary, you can
edit the date, description, and amount for each deferral transaction.

6. Choose Save Account when the information is correct, then choose OK to close
the window.

7. If you need to defer another distribution for this transaction, repeat steps 2
through 6.

8. Close the distribution entry window, and save or post the transaction. If you
print an edit list for a batch that includes deferred transactions, the Deferral Edit
List will also be printed, showing how the deferrals will be posted.

Deferring a transaction distribution using a profile

Use the Deferral Profile Selection window to defer a transaction distribution using a
deferral profile. A deferral profile provides default entries to help ensure that
similar transactions are entered with consistent information. For example, if you
routinely enter transactions for service contracts your company offers, and the
revenue is recognized over a 12-month period, you could use a deferral profile for
these service contract transactions.

The profile specifies the accounts to be used, and the method for calculating how
the deferred revenue is recognized. For information on setting up profiles, see
Setting up a deferral profile on page 61.

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You can open the Deferral Profile Selection window from the following distribution
entry windows.

Module Distribution entry window Navigation

Receivables Management Sales Transaction Distribution Entry Sales >> Transactions >> Transaction Entry >> Enter or select a
customer ID >> Distribution button
Sales Order Processing Sales Distribution Entry Sales >> Transactions >> Sales Transaction Entry >> Enter or
select a document number for an invoice or return >>
Distributions button
Invoicing Invoice Distribution Entry window Sales >> Transactions >> Invoice Entry >> Enter or select a
document number >> Distributions button
Payables Management Payables Transaction Entry Distribution Purchasing >> Transactions >> Transaction Entry >> Enter or
select a voucher number >> Distributions button
Purchase Order Processing Purchasing Distribution Entry Purchasing >> Transactions >> Receivings Transaction Entry
>> Enter or select a receipt number >> Distributions button

To defer a transaction distribution using a profile:

1. Enter or select a transaction, and open the appropriate distribution window. For
example, if you wanted to defer the revenue from a transaction entered in the
Receivables Transaction Entry window, you would enter the transaction
amounts, and choose Distribution to open the Sales Transaction Distribution
Entry window.

2. In the distribution entry window, select the distribution you want to defer.

Depending on how your default posting accounts are set up, you may need to
change the account to a deferral account. For example, if you’re deferring the
revenue for a prepaid maintenance contract, you could change the SALES
posting account to the account you use for deferred revenue.

3. From the Additional menu, choose Deferral Profile to open the Deferral Profile
Selection window.

Enter or select the profile you want to use to defer this distribution.

4. Depending on how you have set up the deferrals feature and the options for
access to this profile, you may be able to change the deferral and recognition
accounts, the calculation method and period information, and each period’s
transaction information.

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5. Choose Allocate to save this distribution deferral and close the window.

6. If you need to defer another distribution for this transaction, repeat steps 2
through 5.

7. Close the distribution entry window, and save or post the transaction. If you
print an edit list for a batch that includes deferred transactions, the Deferral Edit
List will also be printed, showing how the deferrals will be posted.

Entering a General Ledger deferral transaction

Use the Deferral Document Entry window to enter a deferral transaction directly in
General Ledger. For example, you can use this window to create the deferral
transactions for an amount that has been posted to a deferral account.

When you use the Deferral Document Entry window, you will specify the deferral
and recognition accounts to use, the beginning and end dates for the deferral, and
the method for calculating the deferred amounts. If you want to ensure that similar
transactions are entered with consistent information, you can use a deferral profile.
For more information, see Entering a General Ledger deferral transaction using a profile
on page 120.

To enter a General Ledger deferral transaction:

1. Open the Deferral Document Entry window.
(Financial >> Transactions >> Financial >> Financial Deferral >> Deferral
Document Entry)

2. Enter the beginning and end of the period, and select the method to use for
apportioning the deferred amounts over that period.

3. Enter a GL Reference, and enter or select a batch.

4. Enter the amount to be deferred, and the recognition and deferral accounts. If
necessary, you can change which account will be debited or credited by clicking
the Dr/Cr buttons next to the account field.

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5. The individual deferral transactions will be calculated and appear in the lower
scrolling window. If necessary, you can edit the date, description, and amount
for each deferral transaction.

6. Choose Save to save the transaction.

Entering a General Ledger deferral transaction using a

profile
Use the Deferral Profile Document Entry window to enter a deferral transaction
directly in General Ledger using a profile. A deferral profile provides default entries
that can help ensure that similar transactions are entered with consistent
information. For example, if you routinely enter transactions for asset depreciation,
you could use a deferral profile for these depreciation transactions. The profile
specifies the accounts to be used, and the method for calculating how the deferred
revenue is recognized. For information on setting up profiles, see Setting up a deferral
profile on page 61.

To enter a General Ledger deferral transaction using a

profile:
1. Open the Deferral Profile Document Entry window.
(Financial >> Transactions >> Financial >> Financial Deferral >> Deferral
Profiles)

2. Enter or select the profile you want to use for this deferral transaction.

3. Enter the amount to be deferred, the batch for this transaction, and a reference.

4. Depending on how you have set up the deferrals feature and the options for
access to this profile, you may be able to change the deferral and recognition
accounts, the calculation method and period information, and each period’s
transaction information for this distribution deferral.

5. Choose Save to save the transaction.

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Creating a retroactive deferral transaction

Use the Retroactive Deferral Transaction Entry window to create distribution
deferrals to apply to previously posted transactions originating from the Sales or
Purchasing series.

Retroactive deferral transactions should use the Profit and Loss deferral posting method.
This allows the posted amount to be reversed from the Profit and Loss account it was
originally posted to, and transferred to a deferrals account. If you need to change the deferral
posting method for a series, you must first post all unposted deferral transactions. For more
information on changing the deferral posting method, see Setting up revenue/expense
deferrals on page 59.

To create a retroactive deferral transaction:

1. Open the Retroactive Deferral Transaction Entry window.
(For sales transactions: Financial >> Transactions >> Financial >> Sales
Retroactive >> Retroactive Deferral)
(For purchase transactions: Financial >> Transactions >> Financial >>
Purchasing Retroactive >> Retroactive Deferral)

2. Enter or select the customer ID or vendor ID for the transaction you want to
defer.

3. Enter or select a batch for the deferral transactions.

4. If necessary, you can restrict the number of transactions that appear in the
scrolling window by entering a range restriction or by displaying only open or
historical transactions. Choose Redisplay to update the list of transactions.

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5. Select the transaction you want to enter deferrals against, and click the
Document Number link to open the Distribution Deferral Information window.

6. Select the distribution you want to defer and choose Extras >> Additional >>
Deferral to open the Deferral Entry window, or choose Extras >> Additional >>
Deferral Profile to open the Deferral Profile Selection window.

7. Enter and save the necessary deferral information. For more information, see
Deferring a transaction distribution on page 115 and Deferring a transaction
distribution using a profile on page 117.

8. If you need to defer another distribution for this transaction, repeat steps 6
through 7. Otherwise, choose OK to close the Distribution Deferral Information
window.

9. If you need to defer another transaction for this customer or vendor, repeat
steps 5 through 8. Otherwise, choose Save to save the deferral transactions.

10. Post the batch. For more information, see Posting deferral transactions on
page 122.

Posting deferral transactions

You can post deferral transaction batches individually, or several at a time. You’ll
use different windows to post deferral transactions, depending on whether they are
General Ledger deferral transactions, or retroactive deferral transactions for the
Sales or Purchasing series.

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To post individual deferral transaction batches:

1. Open the Deferral Batch Entry window.
(For General Ledger deferrals: Financial >> Transactions >> Financial >>
Financial Deferral >> Deferral Batches)
(For retroactive Sales deferrals: Financial >> Transactions >> Financial >> Sales
Retroactive >> Retroactive Batches)
(For retroactive Purchasing deferrals: Financial >> Transactions >> Financial >>
Purchasing Retroactive >> Retroactive Batches)

2. Enter or select the batch you want to post.

3. Choose Post.

To post multiple deferral transaction batches:

1. Open the Deferral Posting window.
(For General Ledger deferrals: Financial >> Transactions >> Financial >>
Financial Deferral >> Deferral Posting)
(For retroactive Sales deferrals: Financial >> Transactions >> Financial >> Sales
Retroactive >> Deferral Posting)
(For retroactive Purchasing deferrals: Financial >> Transactions >> Financial >>
Purchasing Retroactive >> Deferral Posting)

2. Mark the available batches that you want to post.

3. Choose Post.

Voiding a deferral transaction

Use the Void Deferral Transactions window to void a posted deferral transaction.
Voiding a deferral transaction will post journal entries reversing the original
deferral journal entries. Depending on how you set up the option for voiding

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deferrals, the original transaction associated with the deferrals may also be voided.
For more information, see Setting up revenue/expense deferrals on page 59.

To void a deferral transaction:

1. Open the Void Deferral Transactions window.
(Financial >> Transactions >> Financial >> Financial Deferral >> Void Deferral
Transactions)

2. Select the series of the transaction you want to void.

3. Enter or select the customer or vendor for the transaction, and if necessary,
restrict the number of transactions that appear in the scrolling window by
entering a range restriction. Choose Redisplay to update the list of transactions.

4. Select the document you want to void and choose Void.

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Chapter 22: Posting

Posting is the process of transferring transactions to the company’s permanent
records.

This information is divided into the following sections:

• Posting overview
• Transaction-level posting
• Posting an individual batch
• Posting batches using the action pane
• Posting to a historical year

Posting overview
Posting makes transactions part of your company’s permanent records. Until
they’re posted, transactions can be modified, voided, or deleted. Once they’ve been
posted, they can’t be altered, though you can enter correcting transactions.

You’ll notice the effects of posting on most reports, which display updated amounts
every time transactions related to the reports are posted.

You can post to the most recent historical year or to any open year in General
Ledger. Historical years include years that have been closed using the fiscal year-
end closing routine, and also years for which the Historical Year option has been
marked in the Fiscal Periods Setup window. See the System Setup instructions
(Help >> Contents >> select Setting Up the System) for more information about
using the Fiscal Periods Setup window.

Posting to history is valuable if, for example, an audit shows discrepancies in the
previous year’s account balance and you must make an adjusting entry. When you
post to a historical year, the system updates the account balances in history and
adds a record for each line item in each transaction. The beginning balance of the
retained earnings account or the beginning balance brought forward account also is
adjusted, depending on the type of accounts (profit and loss, or balance sheet)
affected. See Posting to a historical year on page 127 for more information.

Posting journals are printed when you post a transaction or a batch and provide a
record and an audit trail for the transactions. When you close the transaction entry
window after posting transactions individually, the posting journal is printed for all
transactions that have been posted. Depending on the setup, the posting journal
might be printed automatically when you post batches. For more information about
posting setup, see the System Setup instructions (Help >> Contents >> select Setting
Up the System).

You can use two types of posting: transaction-level posting and batch posting.

Transaction-level posting
If you use transaction-level posting, you must post each transaction as it is entered.
You also can use transaction-level posting for a transaction that is part of a batch in
the Transaction Entry window (Transaction >> Financial >> General) by clearing the
Batch ID and choosing Post.

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Transactions can be posted individually in the Transaction Entry or Clearing Entry

windows. Quick journal entries can be posted directly from the Quick Journal Entry
window. In either case, the posting date is the same as the transaction date. All
transactions posted individually in a single data entry session have the same audit
trail code.

The individual transaction posting method is useful if a transaction won’t be

repeated. For example, you might need to enter an adjusting entry at month’s end to
assign revenues or expenses to the period in which they were either earned or
incurred. Also, individual transaction entry would be useful if you need to make an
adjusting entry to correct a previous error made in recording a transaction.

Posting an individual batch

Use batch posting to post one batch at a time from the Batch Entry window. With
batch posting, you can post batches individually or in groups. You can use these
methods in any combination to update your records in a timely and efficient
manner. If you are using Workflow, the batch must be approved before you can post
the batch. You also can post batches that don’t need approval.

We recommend that you back up company data before posting. If power fluctuates or another
problem occurs, you can restore your data and begin the posting process again. For more
information about making backups, refer to the System Administrator’s Guide (Help >>
Contents >> select System Administration).

To post an individual batch:

1. Open the Batch Entry window.
(Financial >> Transactions >> Financial >> Batches)

2. Enter or select a batch to be posted.

3. Choose File >> Print or the printer icon button to verify the transactions
included in the batch with an edit list.

If the Allow Negative Debits and Credits in General Ledger option is marked in the
Company Setup Options window, negative transaction amounts or batch totals might
be included.

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4. Check your selections in the Batch Entry window for accuracy, including batch
requirements and approval options.

5. Choose Post to post the batch.

Posting batches using the action pane

You can view, print an edit list, mark, and post one or more batches using the
General Ledger Batches list view and the buttons in the action pane. If you are using
Workflow, the batch must be approved before you can post the batch. You also can
post batches that don’t need approval.

To post batches using the action pane:

1. Open the General Ledger Batches list view. From the navigation pane, choose
the Financial button >> General Ledger Batches.

2. Print an edit list for each batch to post and review the transactions in that batch.
To print the edit list, in the Reports group, choose >> Print Edit List.

3. Review the transactions, make any changes that are necessary and print the edit
list again to verify them. For more information, see Chapter 23, “Correcting
transactions.”

4. Save your changes and close the Transaction Entry and Batch Entry windows.

5. Make a backup of your company’s data. See the System Administrator’s Guide
(Help >> Contents >> select System Administration) for information about
making backups.

6. In the General Ledger Batches list, mark the batches to post.

7. Choose to post the selected batches.

8. Print posting journals and distribution breakdown registers. Using the Posting
Setup window, you can select posting journals to print according to your
preferences.

Posting to a historical year

You can post transactions to the most recent historical year. Historical years include
years that have been closed using the fiscal year-end closing routine, and also years
for which the Historical Year option has been marked in the Fiscal Periods Setup
window. See the System Setup instructions (Help >> Contents >> select Setting Up
the System) for more information about using the Fiscal Periods Setup window.

Posting to an historical year is useful if you have to enter audit adjustments after
you have closed the year. When you post an adjustment to a closed year, the
beginning balances of the affected accounts for the next year are adjusted
automatically and you will see both entries on the posting journal.

You must have Allow Posting to History marked in the General Ledger Setup
window if you want to post to a history year. Also, the period can’t be marked as
closed in the Fiscal Period Setup window.

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For example, assume you have closed fiscal year 2003. In fiscal year 2004, you
determine that an adjustment needs to be made to fiscal year 2003. When you post
the adjustment with a posting date that falls in fiscal year 2003, you will see two
transactions on the posting journal, one to adjust the account activity for the
historical year and the other to adjust the beginning balances for the open year. For
example, if the transaction affected two balance sheet accounts, the posting journal
would look like this:

Account Date Debit Credit

Accounts Payable 12/15/03 100
Cash 12/15/03 100
Accounts Payable 12/31/03 100
Cash 12/31/03 100

If the adjustment affected a balance sheet account and an income statement account,
the posting journal would look like this:

Account Date Debit Credit

Travel Expense 12/15/03 100
Accounts Payable 12/15/03 100
Retained Earnings 12/31/03 100
Accounts Payable 12/31/03 100

The first transaction adjusts the account balances for the fiscal year 2003. The second
transaction adjusts the beginning balance that was set up for fiscal year 2004 when
fiscal year 2003 was closed. Thus, you don’t need to close fiscal year 2003 again to
roll forward the changes; the beginning balances are updated automatically.

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Chapter 23: Correcting transactions
Transaction errors can and should be corrected to keep your accounting data
accurate. The way you correct the error depends on whether or not the transaction
has been posted.

This information is divided into the following sections:

• Correcting an unposted transaction

• Backing out a posted transaction
• Backing out and correcting a posted transaction
• Copying a posted transaction

Correcting an unposted transaction

If you’ve entered but haven’t posted an incorrect transaction, the error should
appear on the transaction edit list. If the error involves an unbalanced transaction,
you’ll receive an alert message that the transaction can’t be posted because it
contains unequal debit and credit entries.

To correct an unposted transaction:

1. Open the window in which the transaction was originally entered.
(Transaction Entry, Clearing Entry, or Quick Journal Entry)

2. Enter or select the journal entry number assigned to the erroneous transaction.
This number should be listed on the transaction edit list, next to or above
(depending on the report layout) the erroneous transaction.

3. Edit the incorrect information.

4. To insert a new distribution row, choose Edit >> Insert Row. To delete a row,
select the row to delete and choose Edit >> Delete Row.

5. Choose File >> Print or the printer icon button to print a transaction edit list to
check your work.

6. Save and post the corrected transaction.

Backing out a posted transaction

You can use the Transaction Entry window to back out a posted transaction. When
you back out a transaction, a new transaction is created and the debits and credits of
the original transaction are reversed when you post the new transaction. Any tax
distributions and multidimensional analysis information also will be reversed. The
source document code, currency ID, and transaction date are copied from the
original transaction.

You can back out the following types of posted transactions.

• Standard
• Reversing
• Clearing
• Quick journal

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You can back out transactions that were posted during an open year or the most
recent historical year.

You can’t back out the following types of transactions.

• Voided transactions
• Consolidated transactions
• Transactions that were created during the year-end closing process
• Transactions that were posted to a historical year
• Clearing entries that use multiple currencies
• Clearing entries that use a single currency other than the functional currency
• Transactions that already have been backed out
• Transactions that were entered to back out a previous transaction

When you back out a transaction, you also have the option to create a new,
correcting transaction using the debits and credits of the original transaction. See
Backing out and correcting a posted transaction on page 131 for more information.

You can back out transactions originating in other modules if you marked the
Voiding/Correcting of Subsidiary Transactions option in the General Ledger Setup
window. You also can back out intercompany transactions if you marked the Back
Out of Intercompany Transactions option in the window. See Setting up default
entries and preferences on page 9 for more information.

To back out a posted transaction:

1. Open the Transaction Entry window.
(Financial >> Transactions >> Financial >> General)

2. Choose Correct. The Correct Journal Entry window will open.

3. In the Correct Journal Entry window, select the Back Out a Journal Entry option.

4. Select the year that the transaction you’re backing out was posted. Select the
journal entry number for the transaction.

5. Choose OK. The Correct Journal Entry window will close and the new
transaction will appear in the Transaction Entry window. The debits and credits
from the original transaction will be reversed when you post the new
transaction.

6. Choose Post to post the transaction, or enter or select a batch ID number and
choose Save to save the transaction in a batch.

7. Close the window.

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Backing out and correcting a posted transaction

You can use the Transaction Entry window to back out and correct a posted
transaction. When you back out and correct a transaction, a new transaction is
created and the debits and credits of the original transaction are reversed when you
post the new transaction. Any tax distributions and multidimensional analysis
information also will be reversed. The source document code, currency ID, and
transaction date are copied from the original transaction.

You also create a new, correcting transaction using the debits and credits of the
original transaction. The source document code, tax information, currency ID,
transaction date, and multidimensional analysis information also are copied from
the original transaction.

You can back out the following types of posted transactions.

• Standard
• Reversing
• Clearing
• Quick journal

You can back out transactions that were posted during an open year or the most
recent historical year.

You can’t back out the following types of transactions.

• Voided transactions
• Consolidated transactions
• Transactions that were created during the year-end closing process
• Transactions that were posted to a historical year
• Clearing entries that use multiple currencies
• Clearing entries that use a single currency other than the functional currency
• Transactions that already have been backed out
• Transactions that were entered to back out a previous transaction

You can back out a transaction without creating a new, correcting transaction. See
Backing out a posted transaction on page 129 for more information.

You can back out and correct transactions originating in other modules if you
marked the Voiding/Correcting of Subsidiary Transactions option in the General
Ledger Setup window. You also can back out intercompany transactions if you
marked the Back Out of Intercompany Transactions option in the window. See
Setting up default entries and preferences on page 9 for more information.

To back out and correct a posted transaction:

1. Open the Transaction Entry window.
(Financial >> Transactions >> Financial >> General)

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2. Choose Correct. The Correct Journal Entry window will open.

3. In the Correct Journal Entry window, select the Back Out a Journal Entry and
Create a Correcting Entry option.

4. Select the year that the transaction you’re backing out and correcting was
posted. Select the journal entry number for the transaction.

5. Choose OK. The Correct Journal Entry window will close and the new
transaction will appear in the Transaction Entry window. The debits and credits
from the original transaction will be reversed when you post the new
transaction.

6. Choose Post to post the transaction, or enter or select a batch ID number and
choose Save to save the transaction in a batch.

7. The correcting transaction will appear in the Transaction Entry window. The
transaction will include the debits and credits of the original transaction.
Modify the transaction, as necessary.

8. Choose Post to post the correcting transaction, or enter or select a batch ID

number and choose Save to save the transaction in a batch.

9. Close the window.

Copying a posted transaction

You can use the Transaction Entry window to copy a posted transaction. When you
copy a transaction, you use the debits and credits of the original transaction to
create a new transaction. The source document code, tax information, currency ID,
transaction date, and multidimensional analysis information also are copied from
the original transaction.

You can copy the following types of posted transactions.

• Standard
• Reversing
• Clearing
• Quick journal

You can copy transactions that were posted during an open year or the most recent
historical year.

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You can’t copy the following types of transactions.

• Voided transactions
• Consolidated transactions
• Transactions that were created during the year-end closing process
• Transactions that were posted to a historical year
• Clearing entries that use multiple currencies
• Clearing entries that use a single currency other than the functional currency

To copy a posted transaction:

1. Open the Transaction Entry window.
(Financial >> Transactions >> Financial >> General)

2. Choose Copy. The Copy Journal Entry window will open.

3. In the Copy Journal Entry window, select the year that the transaction you’re
copying was posted.

4. Select the journal entry number for the transaction that you’re copying.

5. Choose OK. The Copy Journal Entry window will close. The new transaction
will appear in the Transaction Entry window. The transaction will include the
debits and credits of the original transaction. Modify the transaction, as
necessary.

6. Choose Post to post the transaction, or enter or select a batch ID number and
choose Save to save the transaction in a batch.

7. Close the window.

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Chapter 24: Matching transactions
Transaction matching is the process of linking related transaction distributions from
different journal entries. For example, you can link period-end adjusting entries to
the original transactions, or link a set of transactions associated with a project.

After you have created links, you can also create groups of linked transaction
distributions. For example, you could create a group of the links for period-end
adjustments to aid in the audit process.

This information includes the following sections:

• Linking transaction distributions

• Modifying transaction distribution links
• Creating a matched transaction group

Linking transaction distributions

Use the General Ledger Transaction Link Maintenance window to link distributions
from multiple posted transactions. Depending on how you set up transaction
matching, you can link distributions to a single account or multiple accounts. Also,
linked distributions may be required to balance (that is, total debits must equal total
credits) before the link can be saved. For more information about transaction
matching setup options, see Setting up transaction matching on page 13.

To link transaction distributions:

1. Open the General Ledger Transaction Link Maintenance window.
(Financial >> Transactions >> Financial >> Transaction Matching)

2. Enter a description for the distributions you want to link. For example, if you’re
linking some month-end adjusting entries to the original transactions, you
could enter “January adjusting entries.”

3. Accept the default link date, or enter the date you want to use for this link. The
date you enter will be used to determine whether to archive a link. For more
information, see Archiving matched transactions on page 190.

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4. Enter or select an account that has distributions you want to include in this link,
then select the year for the transactions you want to include. All transactions
posted to this account and year will appear in the scrolling window.

5. If necessary, enter range restrictions to reduce the number of transactions

displayed and choose Redisplay.

You can also choose whether to display debit or credit distributions or both, and
whether to display only those distributions that have not previously been
included in other links.

6. Mark the link option for each distribution you want to include. As you mark
distributions, the difference (that is, the debit or credit balance) and the number
of distributions included will be updated.

If you want to include distributions to a different account, enter that account

and any range restrictions. The transactions posted to that account will appear,
and you can mark the distributions.

7. Choose Save to save the link.

Modifying transaction distribution links

Use the General Ledger Transaction Link Maintenance window to modify
transaction distribution links. You can link additional distributions or remove
distribution links. Depending on how you set up transaction matching you can add
links to distributions to additional accounts.

To modify transaction distribution links:

1. Open the General Ledger Transaction Link Maintenance window.
(Financial >> Transactions >> Financial >> Transaction Matching)

2. Enter or select the link number you want to modify.

3. Make the necessary changes and choose Save.

Creating a matched transaction group

Use the Transaction Matching Group Maintenance window to create and modify
groups of transaction distribution links. For example, you could create a group of
the links of month-end adjusting entries.

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 C H A PT E R 2 4 M A T C HI N G T R A N S A C T IO N S

To create a matched transaction group:

1. Open the Transaction Matching Group Maintenance window.
(Financial >> Transactions >> Financial >> Transaction Matching Groups)

2. Enter a name for the group. A message will appear asking if you want to create
this group. Choose Yes.

3. Mark the links you want to include in this group. You can include links that
have been included in other groups, as well as archived links.

4. Choose Save.

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PART 4: INQUIRIES
 Part 4: Inquiries
You can use inquiries to display and analyze account and transaction information.

In General Ledger, you can use inquiries to quickly view both current and historical
account, budget, and transaction information. You can review information in
summary or detailed form, with the option of printing the information in the
window by choosing File >> Print.

The following information is discussed:

• Chapter 25, “Account inquiries,” describes how to view account activity for
open or historical years.

• Chapter 26, “Transaction inquiries,” describes how to view posted transactions

for open periods or historical years.

• Chapter 27, “Transaction matching inquiries,” describes how to view

information about linked transaction distributions.

• Chapter 28, “Budget inquiries,” describes how to view budget summary

information so you can compare budget amounts to actual amounts for a
selected account and budget.

• Chapter 29, “Account rollup inquiries,” describes how to use account rollup
inquiries to create segment-based inquiries for any range of account segments.

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Chapter 25: Account inquiries
You can view account activity for open or historical years. In addition, you can
analyze net changes to accounts for open periods.

This information is divided into the following sections:

• Viewing multiple currencies

• About reporting currency
• Viewing a summarized account balance for an open fiscal year
• Viewing a summarized account balance for a historical year
• Viewing changes to an account balance

Viewing multiple currencies

If you are using Multicurrency Management, you can choose whether to view
multicurrency amounts in the originating, functional, or reporting currency. Choose
View >> Currency >> Functional, Originating, or Reporting in an inquiry window.
The option will be saved on a per user, per window basis.

You also can use the currency list button in windows that support changing the
currency view. The View menu and currency list button are available in the
following inquiry windows:

• Summary Inquiry
• Detail Inquiry
• Journal Entry Inquiry
• History Summary Inquiry
• History Detail Inquiry

The originating currency view isn’t available in the Summary Inquiry window or History
Summary Inquiry window because the amounts might be for multiple currencies.

The first time you open each of these windows after registering Multicurrency
Management, all the transactions will be displayed in the originating currency. If
you change the currency view, it will be the default view the next time you open
that window.

About reporting currency

A reporting currency is used to convert functional or originating currency amounts
to another currency on inquiries and reports. For example, if the U.S. dollar is the
functional currency for a company, you can set up the euro as your reporting
currency to view an inquiry window with currency amounts displayed in the euro
currency.

When you set up the reporting currency in Multicurrency Management, you enter a
default exchange rate and rate calculation method. Depending on how your system
is set up, you might be able to override the default reporting currency exchange rate
or rate calculation method on inquiries and reports. To change the default reporting
currency exchange rate, choose View >> Currency >> Modify Reporting Rate to
open the Modify Reporting Rate window.

For more information about the reporting currency, see the Multicurrency
Management documentation.

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Viewing a summarized account balance for an open

fiscal year
Use the Summary Inquiry window to view account balances in a net change and
period balance format. The window also displays the account total (the sum of the
beginning balance and all period balances).

The Summary Inquiry window can be helpful if you want to verify the amounts for
an open year. To do so, print a detailed trial balance and compare the detail on the
report with the summary amount displayed in this window. If the amounts differ,
you should reconcile the year. During the reconcile process, the summary balance
will be adjusted to match the transaction detail. For more information about
reconciling, see Reconciling financial data on page 187.

To view a summarized account balance for an open fiscal

year:
1. Open the Summary Inquiry window.
(Financial >> Inquiry >> Financial >> Summary)

2. Enter or select an account.

3. Enter or select a year.

You can click the Account field link to open the Account Maintenance window, where
you can view account details. You can click the Debit, Credit, Net Change, or Period
Balance field links to open the Detail Inquiry window to view transactions posted to
specific accounts in open fiscal years.

4. You can choose Currency to open the Multicurrency Summary Inquiry window,
where you can view summarized account balances and multicurrency
information.

5. You can print a Summary Inquiry Report by choosing File >> Print or the
printer icon button while the information you'd like to print is displayed.

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Viewing a summarized account balance for a

historical year
Use the History Summary Inquiry window to view summarized account balances
in a net change and period-by-period format for a historical fiscal year. This
window is similar to the Summary Inquiry window, except that it shows historical
amounts.

To verify the amounts for a historical year, print a detailed historical trial balance
and compare the detail on the report with the summary amount displayed in this
window. If the amounts differ, you should reconcile the year. During the reconcile
process, the summary balance will be adjusted to match the transaction detail. For
more information about reconciling, see Reconciling financial data on page 187.

To view a summarized account balance for a historical

year:
1. Open the History Summary Inquiry window.
(Financial >> Inquiry >> Financial >> History Summary)

2. Enter or select an account, then select a year.

Period-by-period balances for the specified year will be displayed, along with
the beginning balance of the account, debits, credits, net change, and the totals
of each category for each period.

You can click the Account link to open the Account Maintenance window, where you
can view account details. You can highlight a period and click the Debit, Credit, Net
Change, or Period Balance link to open the History Detail Inquiry window, where you
can view transactions posted to specific accounts in historical years. You also can choose
the Currency button to open the Multicurrency Summary Inquiry window, where you
can view summarized account balances and multicurrency information.

3. You can print a Summary Inquiry Report from this window by choosing File >>
Print or the printer icon button while the information you'd like to print is
displayed.

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Viewing changes to an account balance

Use the Net Change Inquiry window to view changes for a selected year—the debit
and credit amounts and overall net change—to the balance of a selected account.
This window displays the description, beginning balance, total debits and credits,
net change, and ending balance for the selected account.

To view changes to an account balance:

1. Open the Net Change Inquiry window.
(Financial >> Inquiry >> Financial >> Net Change)

2. Enter or select an account.

3. Enter or select a year.

4. When you’ve finished viewing information, close the window.

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Chapter 26: Transaction inquiries
You can view posted transactions for open periods or historical years using
transaction inquiries. You can also view information about deferral transactions.

This information is divided into the following sections:

• Viewing budget transaction and history summary information

• Viewing transactions posted to an open year
• Viewing transactions posted to a specific account in a historical year
• Viewing posted transactions during an open fiscal year
• Viewing deferral transactions

Viewing budget transaction and history summary

information
Use the Budget Transaction Inquiry window to view balances and budget amounts
or net change for open or historical periods. This information can be used to
compare actual account activity with budgeted amounts.

The Budget Transaction Inquiry window is useful if you’re interested in viewing

budget figures, but don’t want to change any calculations.

Use the Budget Summary History window to view period balances, net change, and
total amounts for an account and budget ID. This information can be used to view
the history of budget transactions for a particular account over multiple periods.

To view budget transaction summary information:

1. Open the Budget Transaction Inquiry window.
(Financial >> Inquiry >> Financial >> Budget Journal Entry Inquiry)

2. Select budget journal entry.

3. Enter or select an account.

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4. Choose how you want to display the budget information: Net Change or Period
Balances.

5. When you’ve finished viewing information, click OK to close the window.

To view budget history summary information:

1. Open the Budget Summary Inquiry window.
(Financial >> Inquiry >> Financial >> Budget Summary)

2. Enter or select an account.

3. Enter or select a budget ID.

4. Choose how you want to display the budget history information: Net Change
or Period Balances.

5. Choose how you want to sort the results: by alias, description, account type,
category, account, or main segment.

6. To return all fields to their default values and remain working in the window,
click Clear.

Viewing transactions posted to an open year

Use the Journal Entry Inquiry window to view transaction detail for General Ledger
posted journal entries in an open fiscal year.

Multiple journal entries with the same number might exist if a recurring transaction
is posted or a reversing transaction is posted. If you enter a journal entry for which
multiple entries exist, the journal entry with the oldest posting date in the open year
is displayed. If you use the Journal Entry lookup button, all unique journal entries
are displayed, and you can select the journal entry you’d like to view.

The Intercompany button is enabled only if the currently displayed journal entry originated
from an intercompany transaction.

The Journal Entry Inquiry window displays posted journal entries in any open year
in General Ledger, so you don’t need to keep transaction history to be able to view
journal entries in this window.

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To view transactions posted to an open year:

1. Open the Journal Entry Inquiry window.
(Financial >> Inquiry >> Financial >> Journal Entry Inquiry)

2. Enter or select the journal entry number. You can view any posted journal entry
number, as long as the journal entry has not been moved to history. Audit trail
code, transaction date, source document, batch ID, reference, currency ID,
account, debit, credit, distribution reference, and difference information are
displayed.

You also can click the Source Document link to open a window containing
detailed information about the journal entry if it originated in a module other
than General Ledger.

3. You can print a Journal Inquiry Report by choosing File >> Print or the printer
icon button while the information you’d like to print is displayed.

4. When you’ve finished viewing the information, close the window.

Viewing transactions posted to a specific account in a

historical year
Use the History Detail Inquiry window to view the transactions posted to specific
accounts in historical years. You also can limit the detail that is displayed, by setting
a range of dates, source documents, or currency IDs. Each transaction’s date, journal
entry number, audit trail code, source document, reference, currency ID, and debit
or credit is displayed.

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To view transactions posted to a specific account in a

historical year:
1. Open the History Detail Inquiry window.
(Financial >> Inquiry >> Financial >> History Detail)

2. Enter or select an account.

3. Select a year.

4. Enter ranges of dates, source documents, and currency IDs that will appear in
the window, and choose Redisplay.

You can highlight a journal entry and click the Journal Entry link to open the
Transaction Entry Zoom window, where you can view information about a posted or
historical transaction. You also can click the Currency ID link for a journal entry not
entered in the functional currency, to open the Financial Exchange Rate Entry Zoom
window, where you can view currencies, exchange rates, and originating and functional
currency amounts for posted multicurrency transactions.

5. You can print a History Detail Inquiry Report by choosing File >> Print or the
printer icon button while the information you’d like to print is displayed.

6. When you’ve finished viewing information, close the window.

Viewing posted transactions during an open fiscal

year
Use the Detail Inquiry window to display detailed information about transactions
posted during an open fiscal year. When you select an account, transactions for the
account are displayed. You also can limit the detail by setting a range of dates,
source documents, or currency IDs. Each transaction’s date, journal entry number,
audit trail code, source document, reference, and debit or credit is displayed.

For example, you might use the Detail Inquiry window if you suspect an error on
the summary trial balance. If the account in question, the Cash account, shows a
$5,000 balance, display the Cash account in this window. The amounts displayed
here for an open period should match the total on the summary trial balance.

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 C H A P T E R 2 6 TR A N S A C T I O N I N Q U I R I E S

To view posted transactions during an open fiscal year:

1. Open the Detail Inquiry window.
(Financial >> Inquiry >> Financial >> Detail)

2. Enter or select an account.

3. Select a year.

4. Enter ranges of dates, source documents, and currency IDs that will appear in
the window, and choose Redisplay.

You can select a journal entry and click the Journal Entry link to open the Transaction
Entry Zoom window, where you can view information about a posted or historical
transaction. You also can click the Currency ID link for a journal entry not entered in
the functional currency to open the Financial Exchange Rate Entry Zoom window,
where you can view currencies, exchange rates, and originating and functional
currency amounts for posted multicurrency transactions.

5. You can print a Detail Inquiry Report by choosing File >> Print or the printer
icon button while the information you’d like to print is displayed.

6. When you’ve finished viewing information, close the window.

Viewing deferral transactions

Use the Deferral Inquiry window to view the deferral transactions for a selected
module.

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To view deferral transactions:

1. Open the Deferral Inquiry window.
(Financial >> Inquiry >> Financial >> Deferral)

2. Using the list at the bottom of the window, select the module you want to view
deferral transactions for.

3. If necessary, enter a range to restrict the number of transactions that appear in

the window, then choose Redisplay.

4. To view more information about a specific deferral, select the transaction and
click on the Document Number link to open the Deferral Inquiry Zoom
window.

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Chapter 27: Transaction matching inquiries
You can view and print information about linked transactions, including specific
links, all the links for a specific account, or the links in a transaction matching
group.

This information includes the following sections:

• Viewing transaction distribution links by number

• Viewing transaction distribution links by account
• Viewing matched transactions by group

Viewing transaction distribution links by number

Use the Transaction Matching by Link Number Inquiry window to view detailed
information about an individual transaction distribution link record.

To view transaction distribution links by number:

1. Open the Transaction Matching by Link Number Inquiry window.
(Financial >> Inquiry >> Financial >> Transaction Match by Link Number)

2. Enter or select the link number you want to view.

3. To view more information about a specific distribution, highlight the record and
click on the Jrnl No. link to open the Transaction Entry Zoom window.

If the link is a member of one or more matched transaction groups, you can
view more information about the group by selecting the group and clicking on
the Group link to open the Transaction Matching Group Inquiry window.

4. You can choose the Print button to print the Transaction Matching by Link
Number report for the information displayed in the inquiry window.

Viewing transaction distribution links by account

Use the Transaction Matching by Account Inquiry window to view the transaction
distributions for an account that have been linked with other distributions.

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To view transaction distribution links by account:

1. Open the Transaction Matching by Account Inquiry window.
(Financial >> Inquiry >> Financial >> Transaction Match by Account)

2. Enter or select the account you want to view link information for, then choose
the year for the transaction distributions you want to view.

3. Indicate whether you want to view only linked or unlinked distributions, or all
distributions.

4. Indicate whether you want to view saved links or archived links.

5. Indicate whether you want to view all links, or links in a particular transaction
matching group.

6. To view more information about the journal entry, link, or currency for a
distribution, highlight the record and click the link for the information you
want to view.

You can use the following windows to view additional information:

Link Window that opens

Journal No. Transaction Entry Zoom
Link Distribution Links Inquiry Zoom
Currency ID Financial Exchange Rate Entry Zoom

7. You can choose the Print button to print the Transaction Matching by Account
Number report for the information displayed in the inquiry window.

Viewing matched transactions by group

Use the Transaction Matching Group Inquiry window to view the transaction
distribution links that have been assigned to a group.

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To view matched transactions by group:

1. Open the Transaction Matching Group Inquiry window.
(Financial >> Inquiry >> Financial >> Transaction Matching Groups)

2. Enter or select the group you want to view.

3. To view more information about a particular link, highlight the link in the
scrolling window and click the Link Number link to open the Transaction
Matching by Link Number Inquiry window.

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154 G E N ER AL LE D G ER
Chapter 28: Budget inquiries
You can use budget inquiries to view budget summary information and to compare
budget amounts to actual amounts for a selected account and budget.

This information is divided into the following sections:

• Viewing budget summary information

• Viewing budgeted versus actual expenditures

Viewing budget summary information

Use the Budget Summary Inquiry window to view balances and budget amounts or
net change for open or historical periods. This information can be used to compare
actual account activity with budgeted amounts.

The Budget Summary Inquiry window is useful if you’re interested in viewing

budget figures, but don’t want to change any calculations.

To view budget summary information:

1. Open the Budget Summary Inquiry window.
(Financial >> Inquiry >> Financial >> Budget Summary)

2. Enter or select an account.

3. Enter or select a budget ID.

4. Choose how you want to display the budget information: Net Change or Period
Balances.

You can select a period and click the Account link to open the Account Maintenance
window, where you can view detailed account information.

5. When you’ve finished viewing information, close the window.

Viewing budgeted versus actual expenditures

Use the Budget vs Actual Inquiry window to view budget and actual amounts or
net change for a particular account and budget ID by period. You can also view the

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variance and variance percentage, so you can analyze how closely your actual
amounts match the budgeted amounts for the selected account.

To view budgeted versus actual expenditures:

1. Open the Budget vs Actual Inquiry window.
(Financial >> Inquiry >> Financial >> Budget vs. Actual)

2. Enter or select an account.

3. Enter or select a budget ID.

4. Choose how to display the budget information: Net Change or Period Balances.

You can highlight a period and click the Actual link to open the Detail Inquiry window,
where you can see all transactions in the period.

5. You can print a Budget vs Actual Inquiry Report by choosing File >> Print or
the printer icon button while the information you'd like to print is displayed.

6. When you’ve finished viewing information, close the window.

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Chapter 29: Account rollup inquiries
You can create segment-based inquiries for any range of account segments within
General Ledger.

This information includes the following sections:

• Account rollup inquiry overview

• Creating an account rollup inquiry option
• Setting up a calculated column
• Modifying an account rollup inquiry option
• Viewing an account rollup inquiry

Account rollup inquiry overview

The Account Rollup Inquiry window displays summarized period balances for
ranges of accounts. You create account rollup inquiry options to define these
account ranges by selecting segment ranges that include the information you want
to summarize. For example, assume your chart of accounts is set up with four
segments: Division, Department, Account, and Sub-Account. You could create an
account rollup inquiry option to summarize travel expenses for a group of
departments across several divisions. Or you could summarize the cost of goods
sold accounts for the sales department of a single division, or of all divisions.

You can set up an account rollup inquiry option that includes multiple ranges for
each segment. For example, you could create an option that included information
for departments 100, 200, 400, and 700, and accounts 1000 through 1400, and 2700
through 2900.

The Account Rollup Inquiry window can display up to four columns of

information. You can set up an option to display actual amounts (in the reporting
currency), previous year balances, other currency balances, and budget amounts.
You can also display columns that show the results of simple calculations; for
example, the difference between actual amounts and budgeted amounts.

For information about setting up inquiry options, see Creating an account rollup
inquiry option on page 157. For information about calculated columns, see Setting up
a calculated column on page 159.

Creating an account rollup inquiry option

Use the Account Rollup Inquiry Options window to define the segment ranges and
types of information you want to view in the Account Rollup Inquiry window.

To create an account rollup inquiry option:

1. Open the Account Rollup Inquiry window.
(Financial >> Inquiry >> Financial >> Account Rollup)

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2. Choose Modify to open the Account Rollup Inquiry Options window.

3. Enter a name for the option you are creating.

4. Select the segment you want to use to sort the information. The selection you
make here will control how the information is sorted in the Account Rollup
Detail Inquiry Zoom window.

5. Select the number of columns of information you want to display.

6. For each column of information, enter the column heading you want to use, and
the type of information you want to display. If you selected Budget or Other
Currency for the type, enter or select the budget or currency you want to
display. If you selected the type Calculated, choose the Selection lookup button
to open the Account Rollup Inquiry Calculated Column window. For more
information, see Setting up a calculated column on page 159.

A calculated column must follow the columns it is performing its operations on. For
example, assume you set up an inquiry option with column 1 as Actual, column 2 as
Budget, column 3 as Calculated, and column 4 as Previous Year. In this case, the
calculated column could not include the previous year amounts in its calculations
because it is listed after the calculated column.

7. Enter restrictions to define the segment ranges you want to create this inquiry
option for. You can set up multiple ranges for a single segment.

8. Choose Save to save the account rollup inquiry option.

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 C H A P T E R 2 9 A C C O U N T R O L L U P I N Q U I R I E S

Setting up a calculated column

Use the Account Rollup Inquiry Calculated Column window to create a
mathematical formula for an account rollup inquiry option that displays the results
of simple calculations. For example, if you create an inquiry option that displays the
actual expenses of a department and the budgeted expenses, you can create a
formula to calculate the difference between the actual amounts and the budget.

A calculated column must follow the columns it is performing its operations on. For
example, assume you set up an inquiry option with column 1 as Actual, column 2 as
Budget, column 3 as Calculated, and column 4 as Previous Year. In this case, the calculated
column could not include the previous year amounts in its calculations because it is listed
after the calculated column.

To set up a calculated column:

1. In the Account Rollup Inquiry Options window, select the type Calculated for
one of the columns, and click the Selection lookup button. The Account Rollup
Inquiry Calculated Column window appears.

2. Enter the columns, constants, and operators for the calculation you want to
create.

For example, to calculate the difference between column 1, Actuals, and column
2, Previous Year, select the Actuals column from the list and click the Column
button. Then click the - operator button. Then choose Previous from the list and
click the Column button again. As you create the calculation, the expression is
displayed in the window: in this case, C1 - C2.

You can create more complex expressions, such as the difference between two
columns as a percentage. This would be ((C1 - C2)/C1)*100.

3. Choose OK to save the expression and close the window.

Modifying an account rollup inquiry option

Use the Account Rollup Inquiry Options window to modify a saved account rollup
inquiry option. You can change the sorting order, add or remove columns of
information, change the formula for a calculated column, and add or remove
segment restrictions.

To modify an account rollup inquiry option:

1. Open the Account Rollup Inquiry window.
(Financial >> Inquiry >> Financial >> Account Rollup)

2. Choose Modify to open the Account Rollup Inquiry Options window.

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3. Enter or select the option you want to change.

4. Make the necessary changes to the option.

To change the formula for a calculated column, click in the row for that column
and click the Selection lookup button.

5. Choose Save to save the account rollup inquiry option.

Viewing an account rollup inquiry

Use the Account Rollup Inquiry window to view segment-based inquiries using
options you created in the Account Rollup Inquiry Options window. You can view
for open or historical years.

To view an account rollup inquiry:

1. Open the Account Rollup Inquiry window.
(Financial >> Inquiry >> Financial >> Account Rollup)

2. Enter or select an option. (For information on creating options, see Creating an

account rollup inquiry option on page 157.)

3. Select the year you want to view, and indicate whether you want to view the net
change for each period, or period balances.

4. Choose Redisplay to display the information. To print a report of the

information displayed in the Account Rollup Inquiry window, choose File >>
Print.

5. To view detailed information about the amounts shown for each period, select a
period and click on one of the column heading links to open the Account Rollup
Detail Inquiry Zoom window.

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PART 5: REPORTS
 Part 5: Reports
You can analyze transaction and account information, and display the information
on the computer screen or on a printed report. You also can save it to a file.

The following information is discussed:

• Chapter 30, “Financial statement reports,” describes financial statements, the

summarized outcome of all the steps in the accounting cycle.

• Chapter 31, “General Ledger reports,” shows how to use reports to analyze
account activity and identify errors in transaction entry.

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Chapter 30: Financial statement reports
General Ledger financial statements help you analyze your business activity.
Financial statements are the summarized outcome of all the steps in the accounting
cycle. You can use financial statements to gain a better understanding of your
company's financial position.

This information is divided into the following sections:

• Understanding financial statements

• Types of financial statements
• Setting up a quick financial statement
• Printing financial statements

Understanding financial statements

In any business, the accounting cycle consists of processes for recording,
summarizing, reporting, and analyzing financial information. However, the
ultimate purpose of all these activities is to generate the financial statements. You
can think of the financial statements printed in General Ledger as the summarized
outcome of all the steps in the accounting cycle, and use the information to gain a
better understanding of your company’s financial position.

There are several ways to print financial statements:

• You can set up financial statements in the Quick Financial Setup window. In this
window, you can quickly set up a basic financial statement and choose which
columns to include in the financial statement. After you save the statement, you
can print it using the Financial Statement Report Options window.

• You can create an unlimited number of financial statement layouts using

Advanced Financial Analysis. For information on creating and modifying
financial statements using Advanced Financial Analysis, refer to the Advanced
Financial Analysis documentation.

• You can use Management Reporter for Microsoft Dynamics ERP to print
financial statements. For more information about printing financial statements
using Management Reporter, refer to the Management Reporter
documentation.

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If you’re keeping history, you can use Microsoft Dynamics GP reporting capabilities
to compare open- and historical-year figures. You also can print financial statements
for any open-year period or historical-year period.

Until the year-end close is completed for General Ledger, you won’t get accurate financial
statements for the new year. Beginning balances for the new year are not created until the
year-end close process is completed. Therefore, the financial statements for the new year will
reflect only current year activity until the year-end closing process is completed. This applies
to both Advanced Financial Analysis and Management Reporter.

Types of financial statements

You can define and print four types of financial statements:

Balance Sheet The Balance Sheet reflects the solvency and financial position of
your company at a specific point in time, listing the assets, and liabilities of your
company. This statement shows your company’s ability to pay its debts as they
become due.

Profit and Loss Statement A Profit and Loss Statement includes your
company’s revenues and expenses, reflecting the profitability of your company for a
specific time period, such as a month or a year.

Statement of Cash Flows The Statement of Cash Flows provides information

about your company’s cash receipts and cash payments over a specified period of
time. You also can determine the amount of cash your company has available at any
given time.

The indirect method is used for calculating and printing the Statement of Cash Flows. This
method calculates the amount of net cash flow from operating activities by reconciling net
income to net cash flow.

Statement of Retained Earnings The Statement of Retained Earnings shows

the items causing changes to your retained earnings, including net income and
declared dividends, for a stated period of time.

Each financial statement includes a number of required columns, which will appear
in the Selected Columns list. In addition to these required columns, you can insert
optional columns for each financial statement. On the Profit and Loss Statement,
Statement of Retained Earnings, and Statement of Cash Flows, you can use a total of
six required and optional columns. On the Balance Sheet, you can use a total of five
columns.

The rows in the financial statement are defined automatically, using General
Ledger’s account categories to group the accounts on the statements. Understanding
account categories on page 15 shows the account categories provided with General
Ledger, their account type, and which financial statements will contain each of the
account categories.

Setting up a quick financial statement

Use the Quick Financial Setup window to define the layout for financial statements.
Unlike other Microsoft Dynamics GP reports, financial statements must be set up
before you can print them.

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Each financial statement includes a number of required columns, which will appear
in the Selected Columns list. In addition to these required columns, you can insert
optional columns for each financial statement. On the Profit and Loss Statement,
Statement of Retained Earnings, and Statement of Cash Flows, you can use a total of
six required and optional columns. On the Balance Sheet, you can use a total of five
columns.

The rows in the financial statement are defined automatically, using General
Ledger’s account categories to group the accounts on the statements. Understanding
account categories on page 15 shows the account categories provided with General
Ledger, their account type, and which financial statements will contain each of the
account categories.

If you create a new financial statement using Advanced Financial Analysis, you can’t use
the new financial statement with Quick Financials.

You can use the Advanced Financial Report Layout window to customize the
financial statements provided with Microsoft Dynamics GP. For example, you can
add report columns, rows, and headers to these statements for reporting detailed
financial information specific to your business.

If you modify an existing quick financial statement and close the window, an alert message
will appear and ask if you want to save your changes. If you choose Delete, the entire
financial statement will be deleted.

To set up a quick financial statement:

1. Open the Quick Financial Setup window.
(Financial >> Reports >> Financial >> Quick Financial)

2. Enter or select a financial statement name and select a statement type.

If you’re defining the layout for a Balance Sheet, Statement of Cash Flows, or
Statement of Retained Earnings, identify the Profit and Loss account that will
provide the net income or net loss source amount for the statement.

3. You can select additional columns from the Optional Columns list to include on
the financial statement. Select an additional column and choose Insert to add it
to the Selected Columns list. You can have up to six columns for a profit and
loss statement, and up to five columns for a balance sheet.

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4. Choose Insert to insert the additional columns into the Selected Columns list.

You can add optional columns only below a required column; you can’t insert an
optional column between two other optional columns or at the top of the list. However, if
you’re using Advanced Financial Analysis, you can add report columns later or move
columns to new locations.

To remove a column from the layout, highlight it and choose Remove. You can
remove only optional columns from the layout.

5. Enter a budget ID if you've included either a year-to-date budget column or

current budget column on the financial statement.

6. Enter or select an open year and a historical year if you’ve included a column
for History YTD or History Currency on the financial statement.

To use more than one budget on a report or more than one year on a history column, use
the Advanced Financial Report Layout window to add more information for reporting
detailed financial information specific to your business.

7. Choose Save.

Printing financial statements

Use the Financial Statement Report window to print financial statements. Before
printing a financial statement, you must create a report option.

If you’re printing a Statement of Retained Earnings and want to enter a prior period
adjustment, enter a description and amount for the adjustment using the Prior Period
Adjustments window (Financial >> Reports >> Financial >> Prior Period Adjustments).
The description and amount of the adjustment that you enter will appear as an adjustment
to the beginning balance of the Retained Earnings account when you print the statement.

To print a financial statement:

1. Open the Financial Statement Report window.
(Financial >> Reports >> Financial >> Financial Statements)

2. Choose the report you want to print and choose New to open the Financial
Statement Report Options window and to create a new report option.

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3. Enter a name for the report option.

4. Choose the level of detail to print for the amounts. If you choose Detail with
Rollups, Summary, or Summary with Rollups, select whether you want the first
account description or the account category description to print for the rows.

5. Mark to include unit accounts and accounts with zero balances.

If you are updating the accelerator file and want to use this updated
information when printing this financial statement, mark the Use Accelerator
option.

6. Select or enter a segment ID to print a financial statement for a range of account

segments. For example, you can print a financial statement for departments 100
to 400 by entering a restriction on the segment that represents the department.

If you select a segment ID, you can choose to print an individual report for each
segment within the range you define. If this box is not marked, a single report
will be printed that includes all accounts in the selected range.

If you have columns in the financial statement that contain user-defined

calculations, you can choose to base the calculation on all accounts in the
defined range or on the amounts on the individual reports. For more
information, see the Advanced Financial Analysis documentation.

7. If you want to modify a column on the financial statement, choose Adjust to

open the Temporary Financial Column Adjustment window. Changes made in
this window will be removed when you close the Financial Statement Report
window. If you want to make a permanent change to the financial statement,
use the Advanced Financial Report Layout window. For more information, see
the Advanced Financial Analysis documentation.

Choose Revert if you made a temporary column adjustment and want to

remove it before printing.

8. Choose Destination to select a printing destination. Reports can be printed to

the screen, to the printer, to a file, or to any combination of these options. If you
select Ask Each Time, you can select printing options each time you print this
report option.

9. To print the report option from the report options window, choose Print before
saving it. If you don’t want to print the option now, choose Save and close the
window. The report window will be redisplayed.

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Chapter 31: General Ledger reports
You can use General Ledger reports to analyze account activity and identify errors
in transaction entry. Use this information to guide you through printing reports and
working with report options. For more information about creating and printing
reports, and the various reporting tools that you can use with Microsoft Dynamics
GP, refer to your System User's Guide (Help >> Contents >> select Using The
System).

This information is divided into the following sections:

• General Ledger report summary

• Specifying a General Ledger report option
• General Ledger Microsoft SQL Server® Reporting Services reports

General Ledger report summary

You can print several types of reports using General Ledger. Some reports
automatically are printed when you complete certain procedures; for example,
posting journals can automatically be printed when you post transactions,
depending on how your posting options are set up. You can choose to print some
reports during procedures; for example, you can print an edit list when entering
transactions by choosing the Print button in the batch entry window.

In order to print some reports, such as analysis or history reports, you must set up
report options to specify sorting options and ranges of information to include on the
report. For more information, refer to Specifying a General Ledger report option on
page 171.

The following table lists the report types available in General Ledger and the
reports that fall into those categories. (Reports printed using Bank Reconciliation
are printed using many of the same windows. Refer to the Bank Reconciliation
documentation for information about reports printed in that module.)

Report type Report Printing method

Setup reports Setup List* Choose File >> Print in the setup
Account Category List windows or create report
Account Segment List options in the Setup Reports or
Quick Journal Setup List Deferral Reports window.
Deferral Setup List
Deferral Profile Setup
Chart of Account lists Accounts List Create report options in the
Posting Accounts List Chart of Accounts Report
Unit Account List window.
Fixed Allocation Accounts List
Variable Allocation Accounts List
Category List
Posting reports General Posting Journal*† Choose File >> Print in the
Clearing Entry Posting Journal† window you use to complete the
Quick Journal Posting Journal† procedure or some will be
printed automatically when you
complete the procedure.
* Indicates reports that can be printed with multicurrency information displayed.
† Indicates reports that can be assigned to named printers. See the System Administrator’s
Guide (Help >> Contents >> select System Administration) for more information.

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Report type Report Printing method

Edit lists General Transaction Edit List* Choose File >> Print in the
Clearing Entry Edit List window you used to complete
Quick Journal Edit List the procedure.
Deferral General Ledger Edit List*
Deferral Edit List*
Revenue/Expense Deferral Profile Report Create report options in the
Deferrals reports Deferral Report Deferral Reports window.
Transaction matching Transaction Matching by Account Create report options in the
reports Number* Transaction Matching Report
Transaction Matching by Link Date* Options window.
Transaction Matching by Link
Number*
Transaction Matching by User ID*
History reports Transaction History Choose Financial >>Utilities >>
Account History Financial >> Remove History and
mark the print option before
removing history.
Utility report Reconcile Report This report will be printed when
you complete the corresponding
procedure.
Cross-Reference reports Cross-Reference Report by Journal Create report options in the
Entry† Cross-Reference Report window.
Cross-Reference Report by Source
Document†
Cross-Reference Report by Audit
Trail Code†
Budget reports Budget List Create report options in the
Budget Report window.
Inquiry reports Summary Inquiry Report Choose File >> Print in the
Detail Inquiry Report corresponding Inquiry window.
Journal Inquiry Report
History Detail Inquiry Report
Budget vs Actual Inquiry Report
Transaction Matching by Account
Inquiry
Transaction Matching by Link
Number Inquiry
Trial Balance reports Detailed Trial Balance*† Create report options in the Trial
Trial Balance Summary*† Balance Report window.
Trial Balance Worksheet*†
Quick Detailed Trial Balance*†
Quick Trial Balance Summary*†
* Indicates reports that can be printed with multicurrency information displayed.
† Indicates reports that can be assigned to named printers. See the System Administrator’s
Guide (Help >> Contents >> select System Administration) for more information.

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 C H A P T E R 3 1 G E N ER AL LE D G E R R E P O R T S

Report type Report Printing method

Period and Year-end Period Consolidation Report These reports will be printed
reports Year-End Closing Report when you complete the
corresponding procedure.
Financial Statements Balance Sheet† Create a layout for the report in
Profit and Loss Statement† the Quick Financial Setup
Statement of Retained Earnings† window. For more information
Statement of Cash Flows† about printing financial
statements, see Chapter 30,
“Financial statement reports.”
* Indicates reports that can be printed with multicurrency information displayed.
† Indicates reports that can be assigned to named printers. See the System Administrator’s
Guide (Help >> Contents >> select System Administration) for more information.

Specifying a General Ledger report option

Report options include specifications for sorting options and range restrictions for a
particular report. In order to print several General Ledger reports, you must first
create a report option. Each report can have several different options so that you can
easily print the information you need. For example, you can create report options
for the Trial Balance Report that show either detailed or summary information.

A single report option can’t be used by multiple reports. If you want identical options for
several reports, you must create them separately.

Use the Financial report options windows to create sorting, restriction,and printing
options for the reports that have been included with General Ledger.

To specify a General Ledger report option:

1. Open a Financial reports window. There are separate windows for each report
type.
(Financial >> Reports >> Financial >> Account)
(Financial >> Reports >> Financial >> Setup)
(Financial >> Reports >> Financial >> Financial Statements)
(Financial >> Reports >> Financial >> Budget)
(Financial >> Reports >> Financial >> Cross-Reference)
(Financial >> Reports >> Financial >> Trial Balance)
(Financial >> Reports >> Financial >> Deferral)

2. Select a report from the Reports list.

3. Choose New to open the report options window. Your selection in step 2
determines which report options window appears.

4. Name the option and enter information to define the option. The name you
choose for the option won’t appear on the report. The selections available for
defining report options vary, depending on the report type you’ve selected.

5. Enter range restrictions. The Ranges list shows the available options for each
report. The available ranges vary, depending on the type of report.

You can enter only one restriction for each restriction type. For instance, you can insert
one account segment ID restriction (1100 to 1104) and one account description
restriction (Cash - Operating Account to Cash in Bank - South Africa).

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6. Choose Insert to insert the range in the Restrictions List. To remove an existing
range from the list, select the range and choose Remove.

7. Choose Destination to select a printing destination. Reports can be printed to

the screen, to the printer, to a file, or to any combination of these options. If you
select Ask Each Time, you can select printing options each time you print this
report option.

8. To print the report option from the report options window, choose Print before
saving it. If you don’t want to print the option now, choose Save and close the
window. The report window will be redisplayed.

General Ledger Microsoft SQL Server® Reporting

Services reports
You can view General Ledger Reporting Services reports from the Reporting
Services Reports list. If you are using Reporting Services 2008, financial metrics for
your home page also appear in the Reporting Services Reports list. You can access
the Reporting Services Reports list from the navigation pane or from an area page in
the Microsoft Dynamics GP application window. This report list appears if you
specified the location of your Reporting Services reports using the Reporting Tools
Setup window. See your System Setup Guide (Help >> Contents >> select Setting
up the System) for more information.

The following Reporting Services reports are available for General Ledger.

Journal Entry Report Source Cross Reference

Trial Balance Detail Trial Balance Summary

To print a General Ledger Reporting Services report:

1. In the navigation pane, choose the Financial button, and then choose the
Reporting Services Reports list.

2. Mark the General Ledger report that you want to print.

3. In the Actions group, choose View to open the Report Viewer.

4. In the Report Viewer, select the specifications for the report and choose View
Report.

5. After viewing the report, select a format and print the report.

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PART 6: UTILITIES AND ROUTINES
 Part 6: Utilities and routines
Utilities are the procedures you need to maintain your data in General Ledger.

Routines are the sets of procedures you need to complete periodically. You can use
the checklists provided with General Ledger, you can customize those checklists to
suit your needs, or you can create your own checklists.

The following information is discussed:

• Chapter 32, “Checklists,” describes how you can create customized checklists of
General Ledger routines or modify existing checklists.

• Chapter 33, “Period and year-end routines,” provides procedures to consolidate

and close a period, as well as close a year.

• Chapter 34, “Account utilities,” shows how to maintain your data in General
Ledger.

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Chapter 32: Checklists
You can create customized checklists of General Ledger routines or modify existing
checklists. For example, you can set up a checklist to ensure that your month-end
reports are printed consistently each month.

Checklist information is contained in the following sections:

• Using a General Ledger checklist

• Adding or modifying a checklist item

Using a General Ledger checklist

Use the Financial Checklists window to complete a General Ledger checklist. As
you select each step in the routine list, the appropriate window used to complete
that procedure appears. You can enter the necessary information in the window,
referring to the procedures in the printed manual or to the online documentation
whenever necessary.

To use a General Ledger checklist:

1. Open the Financial Checklists window.
(Financial >> Routines >> Financial >> Checklists)

2. Select a frequency from the Frequency list. The list of tasks appears.

3. Select a task in the checklist.

4. Choose Open. The appropriate window opens for the selected task.

5. Perform the required task, then close the window.

6. In the Financial Checklists window, select the next task.

When you save the information, the window closes, and the Financial
Checklists window becomes active, displaying the date the procedure was
completed and the ID of the user who completed it.

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Adding or modifying a checklist item

Use the Financial Checklists window to add or modify checklists of financial
routines. You can select the frequency with which each set of routines should be
completed. The following frequencies are available:

• Daily
• On payday
• At the end of a period, month, quarter, fiscal year, or calendar year
• During setup
• User defined

To add or modify a checklist item:

1. Open the Financial Checklists window.
(Financial >> Routines >> Financial >> Checklists)

2. Select a frequency.

3. Choose Add to add an item or select an item and choose Modify to modify an
item. The Add-Modify Financial Routines window will open.

4. Enter the item information.

5. Choose OK to save the information. The Financial Checklists window is

redisplayed, where you can adjust the position of the item in the checklist.

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Chapter 33: Period and year-end routines
This part of the documentation describes routines you may complete at the end of a
period and at the end of a year. This chapter describes a spreadsheet that you can
generate to help you match transactions in General Ledger with the corresponding
transactions in the original module. You can also find information to help you
prepare and close a period and to prepare and close a year. A procedure for
printing a VAT return is also included.

This information is divided into the following sections:

• Reconciling to General Ledger

• Understanding the reconciliation spreadsheet
• Consolidating a period
• Closing a period
• Understanding closing a year
• Preparing to close a year
• Closing a fiscal year
• Printing a VAT Return

Reconciling to General Ledger

During normal business operations, thousands of transactions can be processed.
When working with this volume of transactions, standard processes might be
inadvertently changed or unintended entries made and posted. As a result, the
balances on a General Ledger trial balance report might not match the
corresponding balance on trial balance reports printed in the original module. Some
specific examples might include the following.

• A transaction is posted to—but not through—General Ledger and is deleted

before it’s posted in General Ledger.
• A transaction is posted to General Ledger, but the amounts are changed before
it’s posted in General Ledger.

Use the Reconcile to GL window to set the restrictions for generating a Microsoft
Excel spreadsheet that can help you match transactions in General Ledger with the
original transaction. This spreadsheet provides information that helps you enter
adjusting transactions that reconcile any discrepancies. For information about how
transactions are matched, refer to Understanding the reconciliation spreadsheet.

Transactions are displayed on the spreadsheet using the functional currency. To be

included in the spreadsheet, transactions must be posted and exist in either an Open
or History table.

The reconcile routine can help you analyze transactions in General Ledger, but it doesn’t
change data automatically, even if unmatched transactions are identified. Adjustments are
not automatically created or posted, nor are transactions marked or identified as being
reconciled within General Ledger. For information about entering reversing or correcting
transactions in General Ledger, refer to Chapter 23, “Correcting transactions.”

Use the following procedures to help you reconcile the following modules:

• To reconcile Payables Management to General Ledger on page 178

• To reconcile Receivables Management to General Ledger: on page 179
• To reconcile Inventory Control to General Ledger on page 180

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• To reconcile Bank Reconciliation to General Ledger on page 181

To reconcile Payables Management to General Ledger

1. Open the Reconcile to GL window.
(Financial >> Routines >> Financial >> Reconcile to GL)

2. Enter or select the Reconciliation number. This number is used as part of the
default file name for the Excel spreadsheet. You can enter and save the
information for the reconciliation and process later.

3. Enter the date for this reconciliation. The user date is the default date.

4. Enter the date range for the transactions to include in this reconciliation.
Typically, reconciling to General Ledger is processed once a month, but
transactions can be reconciled more or less often depending on the number of
transactions in the module. The Payables Management transactions with a
transaction date that is on or between the date range will be included in the
reconcile.

5. Select Payables Management to reconcile with General Ledger.

6. Select a file location for the Excel spreadsheet that will be created. The output
file and location is module-specific. After the first time you reconcile, the most
recently used location for Payables Management reconciliations will be the
default location.

The default file name is created for the Excel spreadsheet by using the module
abbreviation, reconciliation number, and date. This name can be changed,
however, we recommend that you use a consistent naming convention and
folder for all reconcile to General Ledger spreadsheets.

7. Enter the accounts to use to match Payables Management transactions to

General Ledger distributions. This would most often be the Accounts Payable
or Discount Available accounts. The accounts that were on the previous
reconciliation for Payables Management are displayed, if this is not the first
reconciliation for this module.

8. Choose Process. The matching process begins and the following occurs:

• Transactions from Payables Management are matched with General Ledger

distributions using the transaction source code, voucher number, posting
date, and transaction amount. This process may take some time, depending
on the number of transactions being processed.

• Transactions are potentially matched if some, but not all, of the information
matches. For example, if the source code and date for the transaction
matches the code and date in General Ledger, but the transaction amounts
don’t match, the transactions are considered potentially matched and will
appear in that section of the spreadsheet.

• If the transaction exists in Payables Management but not in General Ledger

or vice versa, the transaction is unmatched and will appear in the
Unmatched section of the spreadsheet.

• The subledger and General Ledger balances are calculated and displayed in
the window.

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• The Excel spreadsheet is created and saved in the output file location that
you specified in step 6. After the processing is complete, the spreadsheet
will open.

You can use the spreadsheet to determine which, if any, next steps you need to
make.

To reconcile Receivables Management to General Ledger:

1. Open the Reconcile to GL window.
(Financial >> Routines >> Financial >> Reconcile to GL)

2. Enter or select the Reconciliation number. The number is used as part of the
default file name for the Excel spreadsheet. You can enter and save the
information for the reconciliation and process later.

3. Enter the date for this reconciliation. The user date is the default date.

4. Enter the date range for the transactions to include in this reconciliation.
Typically, reconciling to General Ledger is processed once a month, but
transactions can be reconciled more or less often depending on the number of
transactions in the module. The Receivables Management transactions with a
transaction date that is on or between the date range will be included in the
reconcile.

5. Select Receivables Management to reconcile with General Ledger.

6. Select a file location for the Excel spreadsheet that will be created. The output
file and location is module-specific. After the first time you reconcile, the most
recently used location for Receivables Management reconciliations will be the
default location.

The default file name is created for the Excel spreadsheet using the module
abbreviation, reconciliation number, and date. This name can be changed,
however, we recommend that you use a consistent naming convention and
folder for all reconcile to General Ledger spreadsheets.

7. Enter the accountsto use to match Receivables Management transactions to

General Ledger distributions. This would most often be the Accounts
Receivable or Discount Available accounts. The accounts that were on the
previous reconciliation for Receivables Management are displayed, if this is not
the first reconciliation for this module.

8. Choose Process. The matching process begins and the following occurs:

• Transactions from Receivables Management are matched with General

Ledger distributions using the transaction source code, document number,
posting date, and transaction amount. This process may take some time,
depending on the number of transactions being processed.

• Transactions are potentially matched if some, but not all, of the information
matches. For example, if the source code and date for the transaction
matches the code and date in General Ledger, but the transaction amounts
don’t match, the transactions are considered potentially matched and will
appear in that section of the spreadsheet.

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• If the transaction exists in Receivables Management but not in General

Ledger or vice versa, the transaction is unmatched and will appear in the
Unmatched section of the spreadsheet.

• The subledger and General Ledger balances are calculated and displayed in
the window.

• The Excel spreadsheet is created and saved in the output file location that
you specified in step 6. After the processing is complete, the spreadsheet
will open.

You can use the spreadsheet to determine which, if any, next steps you need to
make.

To reconcile Inventory Control to General Ledger

The Historical Inventory Trial Balance (HITB) table is used to reconcile Inventory to
General Ledger. Depending on the version of Microsoft Dynamics GP you’re using,
this table may not be included in your system. You must contact Microsoft Dynamics
GP Technical Support to see if the Historical Inventory Trial Balance report and the
HITB Inventory Reset Tool fits your current business process.

1. Open the Reconcile to GL window.

(Financial >> Routines >> Financial >> Reconcile to GL)

2. Enter or select the Reconciliation number. This number is used as part of the
default file name for the Excel spreadsheet. You can enter and save the
information for the reconciliation and process later.

3. Enter the date for this reconciliation. The user date is the default date.

4. Enter the date range for the transactions to include in this reconciliation.
Typically, reconciling to General Ledger is processed once a month, but
transactions can be reconciled more or less often depending on the number of
transactions in the module. The Inventory transactions with a transaction date
that is on or between the date range will be included in the reconcile.

If any dates in the range are prior to the date you installed a version of Microsoft
Dynamics GP that includes HITB or updated your system using the Inventory Reset
Tool, you won’t be able to reconcile Inventory to General Ledger.

5. Select Inventory to reconcile with General Ledger.

6. Select a file location for the Excel spreadsheet that will be created. The output
file and location is module-specific. After the first time you reconcile, the most
recently used location for Inventory reconciliations will be the default location.

The default file name is created for the Excel spreadsheet using the module
abbreviation, reconciliation number and date. This name can be changed,
however, we recommend that you use a consistent naming convention and
folder for all reconcile to General Ledger spreadsheets.

7. Enter the accounts to use to match Inventory transactions to General Ledger

distributions. This would most often be the Inventory accounts. The accounts
that were on the previous reconciliation for Inventory Control are displayed, if
this is not the first reconciliation for this module.

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8. Choose Process. The matching process begins and the following occurs:

• Transactions from Inventory are matched with General Ledger

distributions using the journal entry, transaction source code, document
number, posting date, and extended cost amount. This process may take
some time, depending on the number of transactions being processed.

• Transactions are potentially matched if some, but not all, of the information
matches. For example, if the source code and date for the transaction
matches the code and date in General Ledger, but the transaction amounts
don’t match, the transactions are considered potentially matched and will
appear in that section of the spreadsheet.

• If the transaction exists in Inventory but not in General Ledger or vice

versa, the transaction is unmatched and will appear in the Unmatched
section of the spreadsheet.

• The subledger and General Ledger balances are calculated and displayed in
the window.

• The Excel spreadsheet is created and saved in the output file location that
you specified in step 6. After the processing is complete, the spreadsheet
will open.

You can use the spreadsheet to determine which, if any, next steps you need to
make.

To reconcile Bank Reconciliation to General Ledger

1. Open the Reconcile to GL window.
(Financial >> Routines >> Financial >> Reconcile to GL)

2. Enter or select the Reconciliation number. This number is used as part of the
default file name for the Excel spreadsheet. You can enter and save the
information for the reconciliation and process later.

3. Enter the date for this reconciliation. The user date is the default date.

4. Enter the date range for the transactions to include in this reconciliation.
Typically, reconciling to General Ledger is processed once a month, but
transactions can be reconciled more or less often depending on the number of
transactions in the module. The Bank Reconciliation transactions with a
transaction date that is on or between the date range will be included in the
reconcile.

5. Select Bank Reconciliation to reconcile with General Ledger

6. Select the checkbook that contains the transactions to reconcile. Reconciliation

information for Bank Reconciliation is saved and processed on a checkbook-by-
checkbook basis.

7. Select a file location for the Excel spreadsheet that will be created. The output
file and location is module specific. After the first time you reconcile, the most
recently used location for Bank Reconciliation reconciliations will be the default
location.

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A default file name is created for the Excel spreadsheet using the checkbook,
reconciliation number and date. This name can be changed, however, we
recommend that you use a consistent naming convention and folder for all
reconcile to General Ledger spreadsheets.

8. The cash account for the checkbook that you’re reconciling with General Ledger
appears as a default account in the Account list. In Bank Reconciliation, each
checkbook is assigned only one account, therefore, only one account should be
entered in this window.

9. Choose Process. The matching process begins and the following occurs:

• Transactions from Bank Reconciliation are matched with General Ledger

distributions using the transaction source code, document number,
transaction date, and payment or deposit amount. This process may take
some time, depending on the number of transactions being processed.

• Transactions are potentially matched if some, but not all, of the information
matches. For example, if the source code for the transaction matches the
code in General Ledger, but the transaction amounts don’t match, the
transactions are considered potentially matched and will appear in that
section of the spreadsheet.

• If the transaction exists in Bank Reconciliation but not in General Ledger or

vice versa, the transaction is unmatched and will appear in the Unmatched
section of the spreadsheet.

• The subledger and General Ledger balances are calculated and displayed in
the window.

• The Excel spreadsheet is created and saved in the output file location that
you specified in step 7. After the processing is complete, the spreadsheet
will open.

You can use the spreadsheet to determine which, if any, next steps you need to
make.

Understanding the reconciliation spreadsheet

The Excel spreadsheet that is created through the reconciliation process can be used
to identify the unmatched or potentially matched transactions to help you find the
transactions that you may need to correct. Matched transactions will also be printed
on the spreadsheets as a reference.

There are links from several cells on the spreadsheet to the entry or inquiry
windows in the original module, so you can see details that aren’t available on the
spreadsheet.

The information used to match transactions with General Ledger differs depending
on which module you’re reconciling. In addition, some modules display additional
information on the spreadsheet to help you identify the transaction in the original

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module. The following table shows which fields are used to match the
corresponding General Ledger field in each module.

General Ledger Inventory Receivables Payables Bank Reconciliation

Management Management
Transaction Date GL Post Date Posted Date Posting Date Date
Journal Entry Journal Entry
Orig. Transaction Transaction Source Transaction Source Transaction Source Transaction Source
Source
Orig. Control Document Number Document Number Voucher Number Document Number
Number
DR/CR Extended Cost On Account Amount On Account Amount Payment/Deposit
Customer Number Vendor ID Transaction Number
Document Number Type

After the information is processed, you will see three sections on the Excel
spreadsheet that opens.

Unmatched
This section of the spreadsheet lists the transactions in which no fields in the
subledger and General Ledger match. This may occur, for example, if transactions
are not posted in General Ledger, or if subledger history has been removed.

Potentially Matched
• If some subledger fields, but not all, match the corresponding fields in General
Ledger, the transactions are considered Potentially Matched and are listed in
that section of the spreadsheet.

• Potentially matched transactions may occur if, for example, a Receivables

Management transaction is entered and posted but the corresponding General
Ledger transaction is deleted. If the General Ledger transaction is re-entered
and posted because the correction has been made, the transaction amounts and
posting dates are the same, but the audit trail and document number entries
will be different.

Matched
• When all fields in the subledger match the corresponding fields in General
Ledger, the transactions are considered Matched and are listed in that section of
the spreadsheet.

• If there are transactions that are matched that do not have an entry in the
General Ledger Originating Control Number column on the spreadsheet, verify
whether they were posted in summary to General Ledger. Control number
information is not used when posting in summary.

• You may have multiple subledger transactions matched to one General Ledger
transaction and vice versa. For example, two receipts are entered in Purchase
Order Processing and are posted in summary to General Ledger. One
distribution line is used to record the extended cost of the two receipts in the
Inventory account in General Ledger. Or, if one receipt is entered in Purchase
Order Processing containing two items, each using a different Inventory
account. Two entries would be posted in General Ledger and you’ll see two

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entries if both accounts were selected to reconcile in the Reconcile to GL

window.

Additional information
Voided transactions When the original transaction and the voided transaction
are both within the date range you selected, both the original and voided
transaction will appear on the spreadsheet. The voided transaction will be indicated
as such with an asterisk. However, if the reversing entry occurs outside of the date
range, the original transaction will appear as it did originally and it will not be
indicated as a voided transaction.

Bank Reconciliation deposit group matching A deposit group is made up

of the receipts associated with a deposit record. All receipts found in the group are
displayed together on the spreadsheet, whether matched, potentially matched or
unmatched. For example, if the General Ledger date of one of the receipts in the
deposit group doesn’t match the receipt date in Bank Reconciliation, all receipts in
the group are potentially matched. Addionally, if the sum of the receipts in the
deposit group does not match the deposit amount (and all other fields are matched)
the group is considered potentially matched and appears in that section of the
spreadsheet.

Links to inquiry windows from Excel Click any field data indicated with
colored text to open the entry or inquiry window displaying the information as it
was originally entered.

Use the procedures in the subledger module documentation to help you make corrections to
existing transactions.

Consolidating a period
Consolidating a period combines the transaction detail into a single summary
transaction balance for each account carried forward to the next period.
Consolidating is optional, and can be used if you no longer need detailed
information for the period in question.

Once the consolidation is complete, the detailed transactions will no longer be available for
reporting or inquiry purposes. You can no longer post transactions to the period and a single
total will appear on the Detailed Trial Balance for each consolidated account.

If you are using multiple ledgers, when you consolidate a period, information is
consolidated by reporting ledger. This means that a period transaction is created for
each reporting ledger for each account that has one or more transactions assigned to
a reporting ledger. Note that a transaction can have only one reporting ledger, but
an account can have multiple transactions, each with a different reporting ledger.

For example, in June, Account 1100 has six transactions in the base reporting ledger
and four in the local reporting ledger. When the June period is consolidated,
Account 1100 will have one transaction for base and one for local.

When a period has been consolidated, you can mark it as closed to prevent
transactions from being posted to it. You also can close fiscal periods without
consolidating them first. For more information about closing fiscal periods, see
Closing a period on page 185.

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Before consolidating a period, enter and post all adjusting entries to correct
transaction detail for the period you want to consolidate. Adjusting entries include
all entries that correct errors made in recording transactions, and journal entries
that assign revenues or expenses to the period in which they were earned or
incurred. After you’ve entered adjusting entries, print an edit list to verify the
accuracy of the data you’ve entered and post the transactions.

You also should print financial statements and a trial balance before and
immediately after consolidating a period. Then, you can compare the detailed
information printed before the consolidation with the summary information
printed immediately after consolidating a period. You can set up a group of period-
end reports in the Financial Groups window that can be used to print all the
financial statements and the Trial Balance each time you consolidate a period.

Before consolidating the period, make a complete backup of your company’s accounting data.
If you have a current backup, information can be restored, if necessary.

To consolidate a period:
1. Open the Period Consolidation window.
(Financial >> Routines >> Financial >> Period Consolidation)

2. Choose whether you want to consolidate a period from an open year or a

historical year.

3. Enter or select the year that contains the period you want to consolidate. You
can only select a year that contains transactions.

4. Enter or select a period.

5. Choose Ranges to display the Account Segment Ranges window. You can
restrict—by account segment—the accounts that will be consolidated. When
you’ve finished, close the Account Segment Ranges window.

If you restrict the consolidation process by account segments, your reports might not
balance. For example, if you post a credit of $100 to the Cash account and a debit of
$100 to the Accounts Payable account in Period 1 and then consolidate the Cash
account for Period 1 only, the Cross-Reference Report by Journal Entry will be out of
balance by $100.

6. Choose OK to consolidate the selected period.

Closing a period
Use the Fiscal Periods Setup window to mark the period as being closed for the
Financial series. When you close a period, you can’t post transactions to the period.
This is useful if you want to prevent a user from accidently posting a transaction to
a period. The period may be reopened at any time and the transaction details will
print on the Detailed Trial Balance.

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Before closing a period, enter and post all adjusting entries to correct transaction
details for the period you want to close. Adjusting entries include all entries that
correct errors made in recording transactions, and journal entries that assign
revenues or expenses to the period in which they were earned or incurred. After
you’ve entered adjusting entries, print an edit list to verify the accuracy of the data
you’ve entered.

To close a period:
1. Open the Fiscal Periods Setup window.
(Administration >> Setup >> Company >> Fiscal Periods)

2. Enter or select a year.

3. Mark the period you want to close.

Within the open and historical years, you can close periods for a Microsoft Dynamics
GP series. For example, if you close the Sales series for the first period of an open fiscal
year, you won’t be able to post from any transaction entry window in Receivables
Management, Invoicing, or Sales Order Processing to that closed period.

4. If you want to close individual transaction origins within each Microsoft

Dynamics GP series, choose Mass Close to open the Mass Close Fiscal Periods
window. For example, if you’ve decided you no longer want to post
transactions for the sale of merchandise to the period you’ve consolidated, you
can close the Receivables Transaction Entry window.

5. Choose OK to close the window and save your entries.

Understanding closing a year

Closing the year transfers all current-year information for each account in the chart
of accounts to account and transaction history (if you’re keeping history records),
and prepares the accounting system for a new fiscal year.

You can enter General Ledger transactions for the next fiscal year without closing
the current year, leaving fiscal years open until all adjusting entries have been
entered and posted to the correct periods. You can set up and post to unlimited
open years.

In addition to transferring open-year amounts to transaction and account history,

the year-end closing process:

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• Reconciles and summarizes the General Ledger balances that have accumulated
throughout the year.

• Transfers open-year profit and loss amounts to the Retained Earnings account.

• Zeros all profit and loss account balances after they’ve been closed to the
Retained Earnings account.

If you find you need to enter adjustments to a profit and loss account after you’ve closed
the year, the system will automatically update the corresponding retained earnings
account. You won't need to do anything following the adjustments.

• Summarizes balance sheet accounts, bringing the balances forward as the

accounts’ beginning balances in the new fiscal year.

Until the year-end close is completed for General Ledger, you won’t get
accurate financial statements for the new year. Beginning balances for the new
year are not created until the year-end close process is completed. Therefore,
the financial statements for the new year will reflect only current year activity
until the year-end closing process is completed. This happens whether the
financial statements are printed from Advanced Financial Analysis or
Management Reporter.

• Consolidates information by reporting ledger. This means that a transaction is

created as of the last day of the previous fiscal year for each account that has
one or more transactions assigned to a reporting ledger. A retained earnings
transaction is created for each reporting ledger based on the consolidation of the
profit and loss accounts. Note that a transaction can have only one reporting
ledger, but an account can have multiple transactions, each with a different
reporting ledger.

• Prints the Year-End Closing Report.

Preparing to close a year

Before you close a year, you must complete the following tasks:

• Complete month-end and period-end procedures for all modules, except

General Ledger.

• Use normal posting procedures to post final transactions in all modules, except
General Ledger.

• After all transactions have been posted successfully, complete year-end

procedures for all modules, in the following order: Inventory, Receivables
Management, and Payables Management.

Payroll year-end procedures are independent of those in other modules, and

are always performed at the calendar year-end.

• Post final adjusting entries in General Ledger.

If you need to make any adjusting entries to allocate revenue, expenses, or

depreciation to the year you’re going to close, use the Transaction Entry
window or the Quick Journal Entry window to enter adjusting entries in
General Ledger.

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Many of these adjusting entries were made automatically if you marked them
as reversing in the Transaction Entry window. Entries that increased assets or
liabilities could be entered as automatically reversing since they would result in
a future cash receipt or payment.

• You can close the last period of the current fiscal year.

Use the Fiscal Periods Setup window to close any fiscal periods that are still
open for the current fiscal year. This keeps transactions from accidentally being
posted to the wrong period or year.

Be sure you've posted all transactions for the period and year for all modules before
closing fiscal periods. If you later need to post transactions to a fiscal period you've
already closed, you'll need to return to the Fiscal Periods Setup window to reopen the
period before you can post the transaction.

• You can print an Account List to verify the posting type for the posting
accounts. To print an Account List, choose Financial >> Reports >> Financial >>
Accounts to open the Chart of Accounts Report window and select All
Accounts in the Reports list. Use this report to verify that all balance sheet and
profit and loss accounts have the correct posting type. The posting type is used
to determine which posting accounts should be closed to retained earnings and
which accounts should have the balance brought forward to the next year.

If the posting type is incorrect for an account, you can change it in the Account
Maintenance window (Financial >> Cards >> Financial >> Account) before
closing the year.

• If you want to keep historical records, verify that Maintain History for Accounts
and for Transactions are marked in the General Ledger Setup window
(Financial >> Setup >> Financial >> General Ledger). If you maintain account
history, you can print financial statements and calculate budgets from historical
years. If you maintain transaction history, you can drill down to transaction
detail and print historical detail trial balances.

If these boxes aren’t marked, the transaction or account information for the year
will be deleted once the year end close process is completed.

• Check links for all Financial tables.

• Back up your company data.

• Use the Trial Balance Report window to print a year-end detailed trial balance.

Be sure you've posted all transactions for the period and year for all modules before
printing the Detailed Trial Balance. If you later need to post transactions, you should
print a new Detailed Trial Balance.

• Print any year-end financial statements required.

• Set up a new fiscal year.

Before you can perform a year-end closing, a new fiscal year must be set up
using the Fiscal Periods Setup window. For example, if you’re closing 2004, be
sure that 2005 has been created.

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Closing a fiscal year

Use the Year-End Closing window to close a year and prepare the accounting
system for a new fiscal year.

After you close a year, you can continue to post transactions within the year as long
as the year remains the most recent historical year and as long as the period you’re
posting transactions within hasn’t been marked closed in the Fiscal Periods Setup
window (Administration >> Setup >> Company >> Fiscal Periods). Historical years
include years that have been closed using the fiscal year-end closing routine, and
also years for which the Historical Year option has been marked in the Fiscal
Periods Setup window. See the System Setup instructions (Help >> Contents >>
select Setting Up the System) for more information about using the Fiscal Periods
Setup window.

Posting to an historical year is useful if you have to enter audit adjustments after
you have closed the year. See Posting to a historical year on page 127 for more
information.

To close a fiscal year:

1. Open the Year-End Closing window.
(Financial >> Routines >> Financial >> Year End Closing)

2. Enter or select a retained earnings account to which the year’s profit or loss will
be closed. If you are closing to divisional retained earnings, enter or select one
of the divisional retained earnings accounts.

3. Enter a starting journal entry that will be used as the first journal entry number
in the next fiscal year.

4. Mark the Remove Unused Segment Numbers option to automatically remove

account segment numbers that are not used in any account.

5. Specify how to handle inactive accounts with zero balances during the year-end
close.

• To keep inactive accounts with zero balances that have budget amounts,
mark Maintain Inactive Accounts, and then select With Budget Amounts.
Inactive accounts with zero balances and no budget amounts will be
deleted during the year-end close.

• To keep all inactive accounts with zero balances, mark Maintain Inactive
Accounts, and then select All Inactive Accounts.

• To delete all inactive accounts with zero balances, unmark Maintain

Inactive Accounts.

6. Choose Close Year to begin the closing process.

A status bar in the Year-End Closing window appears, displaying the steps that
are completed.

Step Description
Step 1 Transactions and the retained earnings account are verified.
Step 2 Account balances are verified.

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Step Description
Step 3 Fiscal year information is verified. Posting numbers and transactions
are reconciled.
Step 4 Beginning balances brought forward and retaining earnings are
created and distributions are moved to history.
Step 5 Divisional retained earnings account is closed.
Step 6 Posting numbers used during the year-end close are updated.
Step 7 The previous year is removed from the account summary.

Step 3 and step 4 may take a long time to complete. Don’t try to close Microsoft
Dynamics GP or restart the computer. Let the process continue.

When closing is complete, the Year-End Closing Report is printed. This report
lists the accounts that have been closed and the transactions created to close
them. The Year-End Closing Report is part of the audit trail and should be
saved with your company’s permanent records.

You should not complete step 6 until you're sure that adjusting transactions won’t be
needed for the year.

7. You can close all fiscal periods for all series using the Fiscal Periods Setup
window.

This step will prevent transactions from being posted from any module to any
period in the year you closed. Once a period has been marked as closed, you
can’t post transactions to it, unless it is reopened in the Fiscal Periods Setup
window.

8. Adjust budget figures for the new year using the Budget Maintenance or Single-
Account Budget Maintenance windows and print financial statements.

After closing the year, update all Trial Balance and Cross-Reference report
options if you want to print them for another open year.

After you finish closing a year, make a complete backup of your company’s accounting
data.

Printing a VAT Return

Use the VAT Return window to print VAT reports you must submit to the
government. You can print summary and detailed VAT information for a specified
period. You can save VAT report IDs and reprint reports at a later time.

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To print a VAT Return:

1. Open the VAT Return window.
(Administration >> Routines >> Company >> VAT Return)

2. Enter or select a VAT report ID and description.

3. Enter starting and ending dates for the report.

Each VAT Report ID you create must have a unique starting date. You can’t use
the same starting date on more than one report ID.

4. Choose Calculate. VAT Return information is displayed in the VAT Return

window.

5. To save the report, choose Save. You must calculate VAT information before
you can save the report ID.

6. To print the report, choose Print. The VAT Return Print Options window will
open. Mark the reports you want to print. You can print summary, detail, tax
detail, or exception reports.

Choose Print. A Report Destination window will appear, where you can select
to print to a file, to the screen, or to a printer.

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Chapter 34: Account utilities
The following procedures remove historical data from your system, so be sure to
back up your accounting data before performing any of these procedures.

This information is divided into the following sections:

• Reconciling financial data

• Removing or printing history
• Archiving matched transactions
• Checking links for deferral records

Reconciling financial data

Use the Reconcile Financial Information window to reset account totals in the chart
of accounts so they match the posted transaction amounts. Reconciling an open year
ensures that amounts on the financial statements are the same as the totals printed
on the Detailed Trial Balance. Reconciling recalculates account summary amounts
for the open periods.

You also can reconcile account balances for a historical year, if you’re keeping both
account and transaction history. This can be useful for comparing historical-year
amounts to open-year totals and budget amounts. For example, reconciling a
historical year is valuable if your accounting periods for a historical year and an
open year are set up differently. By reconciling accounts, you can redistribute
historical-year transactions to periods that parallel the open year; transactions are
distributed according to their posting dates. Then, you could compare historical-
year and open-year amounts.

Before reconciling accounts, back up all your company’s accounting data. For more
information about making backups, refer to the System Administrator’s Guide (Help >>
Contents >> select System Administration).

To reconcile financial data:

1. Open the Reconcile Financial Information window.
(Financial >> Utilities >> Financial >> Reconcile)

2. You can indicate if all allocation accounts should be reconciled.

If you reconcile allocation accounts, the system verifies the validity of all
allocation accounts, distribution and breakdown accounts, and account types. If
the allocation accounts contain errors, the Reconcile Report is printed. The
reconciliation process doesn't correct allocation account errors, you must enter
those corrections manually.

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3. Select a year to reconcile.

You can reconcile either an open year or a historical year that contains
transactions. You must be maintaining both account history and transaction
history to reconcile records for a historical year.

4. Indicate whether you want to reconcile batches.

If you reconcile batches, the system verifies that all the identifying information
for the unposted batches is correct. If you reconcile batches and identifying
records are added, the Reconcile Report is printed.

5. Choose Posting Numbers to open the Reconcile Posting Numbers window,

where you can reconcile posting numbers so that no gaps in the posting number
sequence exist.

The Posting Numbers buttons appears only if you have marked the Enable
Posting Numbers in General Ledger option in the Company Setup Options
window. Sequential posting numbers are a legal requirement in some European
countries.

6. Choose Reconcile to reconcile account totals, batch information, or both.

Removing or printing history

Use the Remove History window to remove ranges of account or transaction history
that are no longer useful. If you’re keeping account and transaction history, those
records can be maintained for historical years. When you close the year, the system
transfers the records for the year being closed, then creates new history records.

Transaction history is a record of all General Ledger transactions transferred from

an open year to history during the year-end closing process. Account history is a
record of the beginning and period balances for the historical year for all accounts in
the chart of accounts.

After removing history, you won’t be able to print the Transaction and Account
History reports or reprint source document reports for the dates or account ranges
that you’ve removed.

Before removing history, back up your company’s accounting data. For more information
about making backups in Microsoft Dynamics GP, see the System Administrator’s Guide
(Help >> Contents >> select System Administration).

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To remove or print history:

1. Open the Remove History window.
(Financial >> Utilities >> Financial >> Remove History)

2. Indicate whether to remove or print transaction and account histories.

If you’ve decided to remove transaction history, mark the Remove option. If

you mark Print, the Transaction History Report is printed for the range of
accounts you’ll specify later in this procedure.

To remove account history, mark the appropriate option and choose to print this
information on the Account History Report. The reports you’ve selected will be
printed when the procedure is completed.

You can print the Account History Report or Transaction History Report without
removing history. To do so, mark only the Print options and choose Process.

3. Select a year for which you want to remove history and select a range of
information to remove. You will be able to select only a year that contains
transactions.

You can remove all transactions and account balances from the selected year by
marking All. If you don’t want to remove all records, you can remove a range of
transactions by period or date. If you’re removing account history, select period
range since account history is kept period-by-period.

If you select to remove both account and transaction history and enter a period
or date range, account history for the entire year will be removed. However,
transaction history will be removed only for the date range you’ve entered. To
remove both account and transaction history for a range of dates, we
recommend you complete the procedure for each type of history separately.

4. Enter a beginning and an ending period, or a beginning and an ending date, if

you’ve selected to remove history for a period or date range.

5. Choose Ranges to open the Account Segment Ranges window to enter the
account segments for which history will be removed. When you’ve entered the
appropriate restrictions in the Restrictions list, choose OK to close the Account
Segment Ranges window.

6. Choose Process in the Remove History window to remove history.

GENERAL LEDGER 189

PA RT 6 U T I L I T I E S A N D R O U T I N E S

Archiving matched transactions

Use the Archive Matched Transactions window to move transaction distribution
links to history. You can still view the historical links in inquiries and reports, but
you won’t be able to modify them.

To archive matched transactions:

1. Open the Archive Matched Transactions window.
(Financial >> Utilities >> Financial >> Archive Matched Transactions)

2. Mark the option to archive links and enter the archive date. Transaction
distribution links with a date prior to this date will be moved to history.

3. Indicate whether you want to move links with a zero balance to history.

4. Choose OK.

Checking links for deferral records

Use the Deferral Check Links window to verify that your transaction distribution
deferral data is accurate. Checking links examines a set of records and compares
them to related information.

To check links for deferral records:

1. Open the Deferral Check Links window.
(Microsoft Dynamics GP menu >> Maintenance >> Deferral Check Links)

2. Select each table you want to check links for and choose Insert.

3. Choose OK.

190 G E N ER AL LE D G ER
Glossary Adjusting entries
End-of-period journal entries that assign
Batch posting
A posting method that allows transactions to
revenues and expenses to the period in be saved in batches and post the batch
Account categories which they were earned and incurred. whenever convenient. There are three types
General Ledger provides account categories Adjusting entries also can be used to correct of batch-level posting: batch posting, series
that are used for grouping accounts on errors in recording transactions. posting, and master posting.
financial statements. Account categories also
can be used as a sorting method for viewing Alert message Breakdown accounts
the chart of accounts. Examples of account A message that appears when inappropriate, Accounts whose balances are used to
categories include Cash, Short Term inadequate, or unclear data or instructions determine the percentages that will be
Investments, and Notes Receivable. are issued, when data is not accessible, or posted to the distribution accounts assigned
when a confirmation is sought. Additional to a variable allocation account.
Account history information about some alert messages and
A record of summarized account balances their causes can be viewed by choosing the Chart of accounts
for historical years. Help button in the alert message dialog box. A list of all accounts that a business
maintains in its general ledger.
Account segment Allocation account
A portion of the account format that can be An account that is used to distribute Chart of accounts reports
used to represent a specific aspect of a percentages of a single transaction to several A General Ledger report type from which
business. For example, accounts can be other accounts. For example, an allocation report options can be created for an
divided into segments that represent account can be used to distribute rent Accounts List, Posting Accounts List, Unit
business locations, divisions, or profit expense to each of the sites affected by the Accounts List, Fixed Allocation Accounts
centers. expense. List, Variable Allocation Accounts List, and
Category List.
Account segment number Audit trail
A number that represents a particular area of A series of permanent records used to track a Clearing transaction
a business or an account category. Using transaction to the point where it was Transaction used to transfer the balance of an
account 01-200-1100, for example, account originally entered in the accounting system. account to another account without deleting
segment number 01 might represent a The audit trail can be used to verify the the account. Clearing transactions are also
particular site, 200 might represent a accuracy of financial statements by outside useful when accounts are obsolete, but can’t
department located at that site, and 1100 accountants or auditors. be deleted because they have current-year
might represent the Cash account for that activity that should appear on the financial
site and that department. Descriptions can Audit trail code statements.
be entered for each account segment number A series of alphanumeric characters
providing a precise record of each Closing entries
and appear on General Ledger reports.
transaction and where it has been posted Entries made to close and clear temporary
Accrual basis accounting within Microsoft Dynamics GP. accounts, such as an Income Summary
The reporting of all accounting activity in the account. The effect of a closing entry is a net
period in which it occurs, regardless of Background processing increase or a net decrease to the Retained
whether cash has been paid or received. A processing system that allows users to Earnings account.
continue working while transactions are
Accrued expense posting or reports are printing. Comma-delimited fields
An expense that increases from day to day, A standard ASCII, or character, file format
but is recorded only when cash is paid. Batch used when exporting a report so that it can
A group of transactions identified by a be read by programs that use this format.
Salary Expense is an example of an accrued unique name or number. Batches are used in
expense, because the amount a company computerized accounting to conveniently Cross-reference reports
owes increases daily but cash payments group transactions, both for identification A General Ledger report type from which
commonly are made on a biweekly or purposes and to speed up the posting report options can be created for cross-
monthly basis. See also Accrued liability. process. reference reports by source document, audit
trail code, or journal entry number. The
Accrued liability Batch controls cross-reference reports are used to trace the
An accrued expense that remains unpaid at Values for both the number of transactions in audit trail of a company's transaction
the end of an accounting period. See also a batch and the total currency amount of the activity.
Accrued expense. batch. As transactions are entered, the actual
totals are displayed. These totals can be Currency symbol
Accrued revenue verified periodically as transactions are The symbol that has been selected to
Revenue received during an accounting designate currency amounts on reports.
entered to ensure the required number and
period that hasn't been recorded at the end amount of transactions match the actual Most information about how currency
of an accounting period. In such cases, the amounts are displayed can be specified in
number and amount that was entered.
revenue should be recorded by debiting an the operating system documentation.
asset account and crediting a revenue Batch frequency
account. A selection in the Batch Entry window that Default value
determines how often a recurring batch will A value that is displayed in a window
Accumulated depreciation be posted, such as weekly, monthly, or automatically, and that will be used unless a
account quarterly. See also Recurring batch. different value is entered.
An asset account used to record an asset's
total depreciation to date.

GENERAL LEDGER 191

GLOS SA RY

Deferral Financing section Macro

Delaying the recognition of revenue or The section of a Statement of Cash Flows that A series of actions performed within an
expense. Usually, deferred revenue or includes transaction amounts for obtaining application that have been recorded for
expense is recognized at specific intervals resources for owners and providing them playback at another time. Macros can be
over a period of time. For example, a with a return on their investments, along used to automate repeated tasks, such as
customer may make a single payment for a with obtaining resources from creditors and month-end procedures or printing reports.
yearly service contract, and a portion of the repaying the amounts borrowed.
revenue is recognized each month. Main segment
Fiscal period The segment of posting accounts that has
Department Division of the fiscal year, usually monthly, been designated as the sorting option for
A business division that incurs costs and/or quarterly, or semiannually, when transaction accounts on financial statements. Typically,
generates revenue. In General Ledger, an information is summarized and financial the main segment is used to indicate whether
account segment can be used to identify a statements are prepared. the account is an asset, liability, owners’
department or division of a business. equity, revenue, or expense account.
Fiscal year
Detailed report An accounting cycle composed of up to 54 Mass modify
A report that displays detailed transaction consecutive periods, spanning the number of A process in which ranges of accounts are
information for each account. days in a year. The fiscal year may also be copied, moved, deleted, or inactivated.
referred to as a financial year.
Distribution accounting Master posting
The practice of allocating transactions to Fixed allocation account A posting process in which marked batches
their departments of origin. Accounts used to distribute specified from different series can be posted
percentages of a single transaction among simultaneously.
Distribution accounts several distribution accounts.
Accounts assigned to a fixed or variable Module
allocation account that will receive a Fixed allocation retained A group of Microsoft Dynamics GP
percentage of transaction amounts when the earnings account applications that can be used to perform a
journal entry is posted. Accounts used to distribute specified specific set of tasks. Modules are combined
percentages of retained earnings among to form a series. For example, the General
Divisional retained earnings several distribution accounts. Ledger with Advanced Financial Analysis is
accounts a member of the Financial series. See also
Two or more accounts among which the net Group printing Series.
income or net loss amount has been divided. Creating and printing report options in
groups. For example, a report group could Net income/loss source
Double-entry accounting be used to print all the financial statements The Profit and Loss Statement used to
An accounting process whereby equal credit and the Trial Balance before closing a month, calculate the net income/loss on another
and debit amounts are entered for each quarter, or fiscal year. financial statement.
transaction.
HTML file Offset account
Edit list A file format that allows you to place In double-entry accounting, the second
A list of transactions in an unposted batch financial information on your company’s account used to balance a transaction,
that can be printed to verify the accuracy of intranet or web site. making debits equal credits.
transactions before posting. Edit lists can be
printed from the Batch Entry window or any Inquiry Operating section
transaction entry window as long as a batch A feature that allows users to view The section of a Statement of Cash Flows that
ID has been entered. information for open and historical years. includes transaction amounts for acquiring,
selling, and delivering goods for sale, along
Error message Investing section with providing services.
See Alert message. The section of a Statement of Cash Flows that
includes amounts for transactions involving Origin
Financial series lending money and collecting on the loans, A transaction window within a specific
A group of Microsoft Dynamics GP modules acquiring and selling investments, and Microsoft Dynamics GP module. Certain
including General Ledger with Advanced acquiring and selling property and options, such as verifying batch controls and
Financial Analysis and other modules in equipment. closing fiscal periods, can be selected for
which transaction information from other each transaction origin. Also, the transaction
modules is collected and maintained. Journal entry origin will appear as part of the audit trail
A transaction recorded in a formalized code on all posting reports in Microsoft
Financial statements manner by entering an account and debit Dynamics GP.
In General Ledger, a term that refers and credit amounts.
collectively to the Balance Sheet, Profit and Password
Loss Statement, Statement of Cash Flows, Lookup window A combination of distinct,
and Statement of Retained Earnings. A window that displays a list of accounts, user-defined characters used to gain access
customers, jobs, or other items in the to the Microsoft Dynamics GP system or to a
Financial year Microsoft Dynamics GP system. Lookup selected application within Microsoft
See Fiscal year. windows for a specific field are displayed by Dynamics GP.
choosing the lookup button next to the field.

192 G E N ER AL LE D G ER
 G L O S S A R Y

Period consolidation Ratio Sample data

A procedure that will total transaction detail The quotient when one amount is divided by Data that can be used to practice Microsoft
into a single summary amount to be carried another, such as when the balance in a Dynamics GP procedures by entering the
forward to the next period. This procedure is column is divided by the balance of a unit information listed in the online lessons.
optional, and can be used if detailed account. Sample data can be accessed using the lesson
information is no longer needed for a company.
specific period. Real-time posting
See Transaction-level posting. Segment number
Posting See Account segment number.
A procedure to make temporary transactions Reconciling
a part of a business’s permanent records; to A procedure used to recalculate account Series
update accounts by transaction amounts. In totals in the Chart of Accounts so they'll A group of Microsoft Dynamics GP modules
manual accounting, posting transfers journal match transaction amounts that have been that form an interrelated set of applications.
entries to the proper accounts in a general posted. The Financial series, for example, contains
ledger. General Ledger, Advanced Financial
Record Analysis, and other modules that collect and
Posting account A collection of related fields within a table. analyze transaction information from other
A financial account that tracks assets, Records typically comprise most or all of the modules.
liabilities, revenue, or expenses. These data entered in the fields in a given window.
accounts will appear on the financial For instance, all the information entered Series posting
statements and other reports created in the about a specific account in the Account A posting process in which marked batches
financial series. Maintenance window makes up a single from the same series can be posted
record. A single transaction entered in the simultaneously.
Posting journal Transaction Entry window also constitutes a
A report printed following the posting record. Setup reports
process that shows the detail for each A General Ledger report type that can be
transaction that has been posted. Posting Recurring batch used to create report options for an Account
journals also include the audit trail code, A batch that will be posted repeatedly, Category List, Account Segment List, Setup
which is a precise record of where each according to the selected frequency. An List, and Quick Journal Setup List. The
transaction has been posted within Microsoft example of a recurring batch would be one information on these reports is entered when
Dynamics GP. to record monthly rent expense. the General Ledger module is set up initially.

Prior period adjustment In Australia and New Zealand, transactions Setup routine
entered in a recurring batch are referred to as A series of procedures that can be used to
An adjustment for an error that was not
discovered during the fiscal period in which standing transactions. open the windows where options and
it occurred. defaults for a specific module are modified
Removing history or set up.
Prior period adjustments should be reported A procedure used to erase ranges of account
as an adjustment to the retained earnings or transaction history. Removing history will Single-use batch
balance at the beginning of the period in remove ranges of history that are no longer A batch that is created, posted once and then
which the correction was made. useful, making additional hard disk space deleted from the system automatically.
available.
Profit and loss account Sorting
Revenue or expense accounts whose Report option A method of arranging data based on the
balances – which determine the net income A collection of entries that specify the order of specified information. For example,
or net loss for the year – will be transferred amount of information or the type of records sorted by class would list all records
to a retained earnings account at the end of a information that will appear on a report. within a class before moving to records in
fiscal year. Multiple report options can be created. the next class.

Profit and Loss Statement Retained earnings Sorting segment

A financial statement showing revenue The balance of the owners’ equity that is Segments of posting accounts that can be
earned by a business, the expenses incurred being retained in the business or used for Microsoft Dynamics GP reports.
in earning that revenue, and the resulting net corporation. Sixteen sorting segments can be used: seven
income or net loss. are predefined and the remaining nine can
Retained earnings account(s) be selected by the user.
Quick financial setup Account(s) to which the balances of current-
A method of creating financial statement year profit and loss accounts will be Source document code
layouts. Once the layouts have been created, transferred during the year-end closing. A code that identifies the type of journal or
they can be used to create report options. entry that can be examined for more
Reversing entry information about a specific transaction. For
Quick journal A transaction that reverses the debit and
example, the source document code, GJ,
A General Ledger journal that can be used to credit entries of a previously posted could be used for general journal entries,
speed data entry for routinely recorded adjusting entry. Reversing entries also can be
while BBAL could be used for beginning
transactions. All the accounts typically used used to correct an erroneous transaction that
balance entries.
in a particular quick journal are selected already has been posted.
when the quick journal is set up; as a result, Standing transactions
only amounts must be entered when See Recurring batch.
transactions are recorded.

GENERAL LEDGER 193

GLOS SA RY

Statement of Cash Flows Trial balance reports

A financial statement that provides A General Ledger report type from which
information about the cash receipts and cash report options for a detailed trial balance,
payments of a business over a specified summary trial balance, or trial balance
period of time. The system uses the indirect worksheet can be created. Trial balances are
method for calculating and printing the used to illustrate that debits equal credits for
Statement of Cash Flows. This method a range of accounts.
indirectly reports the amount of net cash
flow from operating activities by reconciling Typical balance
net income to net cash flow. The type of balance, either debit or credit,
that an account has under ordinary
Statement of Retained Earnings circumstances. Asset and expense accounts
A financial statement that provides an normally have debit balances, while liability,
analysis of retained earnings, including net revenue, and equity accounts normally have
income, declared dividends, and the ending credit balances.
balance of the retained earnings account for
the period being reported. Unit account
An account that tracks statistical or
Subsidiary ledger nonfinancial quantities, such as the number
A group of accounts other than General of customers with past-due balances or the
Ledger accounts that show the details number of invoices generated over a specific
underlying the balance of a controlling time period.
account in the General Ledger. Examples of
subsidiary ledgers are customer accounts Variable allocation account
and vendor accounts. An account used to distribute fluctuating
percentages of a single transaction to several
Summarized report different accounts.
A report where the amounts from an account
range or category are printed in a single line. Variance
See also Detailed report. The difference between two amounts, such
as balances in two columns, when one is
Tab-delimited fields subtracted from the other. A common
A tab-separated ASCII character file format variance compares budgeted amounts to
used when exporting a report so that it can actual balances.
be read by programs that use this format.
Year-end closing
Text-only format A process used to calculate retained earnings
A file format that saves reports as text for the year, transfer all current-year
without formatting. This format is used information for each account in the chart of
when exporting reports to applications that accounts to account and transaction history
are unable to read other formats available in and to prepare the accounting system for a
Microsoft Dynamics GP. new fiscal year.

Transaction
An event or condition that is recorded in
asset, liability, expense, revenue, and/or
equity accounts. Sales to customers or
purchases from vendors are examples of
transactions.

Transaction history
A record of transactions for a historical year.

Transaction matching
The process of linking related transaction
distributions from different journal entries.
For example, you can link period-end
adjusting entries to the original transactions,
or link a set of transactions associated with a
project.

Transaction-level posting
A posting method in which transactions can
be entered and posted without having to
create a batch. Also known as real-time
posting. See also Batch posting.

194 G E N ER AL LE D G ER
Index allocation accounts
described 15
Budget vs Actual Inquiry report, printing
156
reconciling 187 Budget vs Actual Inquiry window,
A approval displaying 156
account aliases for batches in General Ledger, budgets
described 18 correcting 98 account types 69
using 19 Archive Matched Transactions window, actual 80
account balances, viewing changes 144 displaying 190 budget versus actual inquiries 155
account categories archiving, linked transactions 190 calculation methods in Microsoft
adding 18 audit trail codes Dynamics GP 77
described 15 beginning balances for mid-year 50 calculation methods in Microsoft
maintaining 17 beginning balances for new year 47 Excel 69
Account Category List, printing 18 transaction-level posting 126 combining 85
Account Category Setup window, creating 67
displaying 18 B creating for a single account 82
Account Entry window, displaying 19 Balance Sheet creating for ranges of accounts 79
account history in General Ledger account budgets 69 creating in Excel 70
described 45 accounts 15 deleting 68
entering 50 deferral posting method 57 deleting in Budget Maintenance 81
keeping 10 described 164 entering a budget transaction 84
Account History report, printing 189 setting up 164 entering amounts 22
Account History window, displaying 51 Batch Entry window exporting 87
Account Maintenance window correcting or deleting batches 99 for a range of dates 78
displaying 21 displaying 97 Microsoft Excel formatting rules 75
divisional retained earnings accounts batch posting in General Ledger opening 68
39 described 126 overview 67
account rollup inquiries individual batches 126 passwords 71
calculated columns 159 using the action pane 127 preliminary 80
described 157 batches in General Ledger preparing for import 88
modifying options 159 correcting 98 reports 81
options 157 creating 97 summary inquiries 155
viewing 160 deleting 98 that overlap fiscal years 78
Account Segment List, printing 41 described 97 transaction inquiries 145
Account Segment Setup window, editing transactions 127 viewing 67
displaying 41 frequency 98
account segments modifying with the action pane 99 C
removing history 189 origins 97 calculated columns, account rollup
setup 41 posting using the action pane 127 inquiries 159
account status, display method 12 batches workflow changes since last release, information
account types in General Ledger, correcting 98 about 5
account categories 15 beginning balances chart of accounts
budgets 69 audit trail codes 47 described 41
accounts in General Ledger described 45 modifying 41
copying 42 entering 45 checklists
deleting 42 entering mid-year 48 adding Financial routines 176
inactivating 42 breakdown accounts 33 modifying 176
modifying ranges 43 budget journal entry numbers, setup 10 using 175
moving 42 Budget List, printing 81 Clearing Entry window, displaying 108
printing history 188 Budget Maintenance window, displaying Clearing Posting Journal, printing 108
removing history 188 79 clearing transactions
summarized historical year balances Budget Selection window, displaying 67 described 107
143 Budget Summary History window, entering 107
summarized open year balances 142 displaying 146 reports 108
types 15 Budget Summary Inquiry window, uses 107
viewing balance changes 144 displaying 155 columns
action pane, correcting batches in General Budget Transaction Entry window, account rollup inquiries 159
Ledger 99 displaying 84 formats for Microsoft Excel budgets
action pane in General Ledger, posting budget transaction history in General 75
batches 127 Ledger, keeping 10 Combine Budgets window, displaying 86
actual budgets, described 80 Budget Transaction Inquiry window, consolidating periods
actual expenditures, described 155 displaying 145 described 178

GENERAL LEDGER 195

IN DEX

consolidating periods (continued) expense deferrals General Posting Journal, printing 102
procedure 179 checking links 190 General Transaction Edit List, printing 47
correcting transactions, unposted creating profiles 61
transactions 129 entering in General Ledger 119 H
currencies in General Ledger, reporting entering in other modules 115 help, displaying 4
141 posting 122 Help menu, described 4
current installation instructions, accessing posting methods historical years, posting 125
on the Web 5 described 57 History Detail Inquiry window,
current upgrade information, accessing on examples 58 displaying 148
the Web 5 profiles described 57 history in General Ledger
retroactive 121 keeping 10
D setting up 59 posting 11
default entries, setting up General Ledger voiding 123 printing 188
9 warning options 61 removing 188
Deferral Check Links window, displaying History Summary Inquiry window,
190 F displaying 143
Deferral Document Entry window, Financial Checklists window, displaying
displaying 119 175 I
Deferral Edit List, printing 117 Financial Statement Report window, icons, used in manual 3
Deferral Entry window, displaying 116 displaying 166 importing, budgets from Microsoft Excel
Deferral Profile Document Entry window, financial statements 89
displaying 120 Balance Sheet 164 inactive accounts 23
Deferral Profile Selection window, described 163 fixed allocation 30
displaying 118 printing 166 unit 26
deferral profiles printing options 166 variable allocation 35
access 63 Profit and Loss Statement 164 inquiries
described 57 setup 164 account balances 144
for transactions 120 Statement of Cash Flows 164 historical years 143
setting up 61 Statement of Retained Earnings 164 open fiscal years 142
using 117 types 164 account rollup 157
deferrals fiscal periods, closing 180 account rollup inquiries 160
checking links 190 Fiscal Periods Setup window, displaying account rollup inquiry calculated
creating profiles 61 180 columns 159
entering in General Ledger 119 fiscal years in General Ledger budget summaries 155
entering in other modules 115 closing 183 budget transaction summaries 145
posting 122 summarized historical account budget versus actual 155
posting methods balances 143 creating account rollup inquiry
described 57 summarized open year account options 157
examples 58 balances 142 journal entries
retroactive 121 fixed allocation accounts historical years 147
setting up 59 deleting 30 open fiscal years 146
voiding 123 described 29 modifying account rollup inquiry
warning options 61 distribution accounts 30 options 159
Detail Inquiry report, printing 149 inactivating 30 multicurrency 141
Detail Inquiry window, displaying 149 modifying ranges 43 posted transactions
distribution accounts, fixed allocation setup 29 historical years 147
accounts 30 Fixed Allocation Accounts List, printing open fiscal years 148
distributions, linking 135 30 reports 142
divisional retained earnings accounts Fixed Allocation Maintenance window, installation instructions, accessing on the
described 38 displaying 29 Web 5
setup 39 formats, rules for Microsoft Excel budgets
documentation 75 J
accessing on the Web 5 Journal Entry Inquiry window, displaying
symbols and conventions 3 G 147
General Ledger Setup window journal entry numbers, setup 10
E displaying 10 Journal Inquiry report, printing 147
exchange rates divisional retained earnings accounts journals, viewing transactions posted to
document dates 95 39 open years 146
rate types 95 single retained earnings account 38
expenditures, budgeted versus actual 155 General Ledger Transaction Link L
Maintenance window, displaying 135 linked transactions, archiving 190
lookup window, displaying 4

196 G E N ER AL LE D G ER
 I N D E X

M posting numbers, reconciling financial reports in General Ledger (continued)

Mass Modify Chart of Accounts window, data 188 Balance Sheet 164
displaying 43 preliminary budgets, described 80 Balance Sheet setup 164
maximum number of columns, formats product documentation, accessing on the Budget List 81
for Microsoft Excel budgets 75 Web 5 Budget vs Actual Inquiry Report 156
Microsoft Excel Profit and Loss, deferral posting method Clearing Posting Journal 108
account types for budgets 69 57 creating report options 171
calculation methods for budgets 69 Profit and Loss accounts, budgets 70 Deferral Edit List 117
creating budgets 70 Profit and Loss Statement Detail Inquiry report 149
exporting budgets to 87 account budgets 70 financial statements 164
formatting rules for budgets 75 accounts 15 financial statements setup 164
importing budgets from 89 described 164 Fixed Allocation Accounts List 30
preparing budgets for import 88 setting up 164 General Posting Journal 102
multicurrency General Transaction Edit List 47
exchange rates 95
Q Historical Summary Inquiry report
Quick Entry Edit List, printing 113 143
in General Ledger 95
Quick Financial Setup window, Journal Inquiry report 147
Multicurrency Account History window,
displaying 165 Posting Accounts List 23
displaying 51
Quick Journal Entry window, displaying posting journals 102
Multicurrency Management
112 printing financial statements 166
inquiries 141
Quick Journal Posting Journal, printing Profit and Loss Statement 164
quick journals 111
113 Profit and Loss Statement setup 164
reporting currency 141
Quick Journal Setup List, printing 54 Quick Entry Edit List 113
N Quick Journal Setup window, displaying Quick Journal Posting Journal 113
navigation, symbols used for 3 54 Quick Journal Setup List 54
net change display method, described 12 quick journal transactions Reconcile report 188
Net Change Inquiry window, displaying default information 112 restricting 171
144 described 111 Setup List 12
new features, information about 5 entering 111 sorting 171
offset accounts 54 Statement of Cash Flows 164
O overview 53 Statement of Cash Flows setup 164
obsolete accounts, clearing 107 posting 111 Statement of Retained Earnings 164
reports 113 Statement of Retained Earnings setup
P setup 53 164
payables transactions, identifying in uses 111 Summary Inquiry report 142
General Ledger. 177 Transaction History report 189
percentages R Unit Accounts List 26
fixed allocation accounts 30 range of accounts, modifying, deleting 43 Value-Added Taxes (VAT) 185
variable allocation accounts 34 rate types, exchange rates 95 Variable Allocation Accounts List 35
period balance display method, described receivables transactions, identifying in VAT Return 185
12 General Ledger 177 Year-End Closing report 184
Period Consolidation window, displaying Reconcile Financial Information window, required fields, described 4
179 displaying 187 resources, documentation 4
posting accounts in General Ledger Reconcile report, printing 188 retained earnings accounts
deleting 23 Reconcile to GL window, displaying 178 described 37
described 15 reconciling in General Ledger setting up divisional 39
inactivating 23 allocation accounts 187 setting up single 37
modifying ranges 43 financial data 187 Retroactive Deferral Transaction Entry
Posting Accounts List, printing 23 Remove History window, displaying 189 window, displaying 121
posting in General Ledger report options in General Ledger, creating retroactive deferrals
dates 126 171 entering 121
deferral transactions 122 reporting currency, described 141 posting 122
described 125 Reporting Services reports revenue deferrals
quick journals 111 General Ledger reports 172 checking links 190
setup options 22 printing General Ledger reports 172 creating profiles 61
unit accounts 26 reports, Reporting Services General entering in General Ledger 119
variable allocation accounts 33 Ledger reports 172 entering in other modules 115
posting journals, printing 102 reports in General Ledger posting 122
posting methods, revenue/expense Account Category List 18 posting methods
deferral 57 Account History report 189 described 57
Account Segment List 41 examples 58

GENERAL LEDGER 197

IN DEX

revenue deferrals (continued) Summary Inquiry history report, printing transactions in General Ledger (continued)
profiles described 57 143 allowing deletion 11
retroactive 121 Summary Inquiry report, printing 142 allowing intercompany correction 11
setting up 59 Summary Inquiry window, displaying 142 allowing voiding 11
voiding 123 symbols, used in manual 3 backing out and correcting posted
warning options 61 system requirements, accessing on the 131
revenue/expense deferrals Web 5 backing out posted 129
checking links 190 clearing 107
setting up 59 T copying posted 132
reversing transactions Tax Entry window, displaying 104 correcting unposted 129
described 101 taxes in General Ledger deferring 119
entering 101 calculating 103 deleting clearing transactions 108
routines in General Ledger distributing 103 deleting quick journals 113
closing periods 180 Value-Added Taxes (VAT) 103 deleting saved reversing transactions
consolidating periods 178 transaction deferrals 102
period tasks 177 checking links 190 deleting saved standard transactions
using checklists 175 creating profiles 61 102
year-end tasks 177 entering in General Ledger 119 inquiries 148
entering in other modules 115 multicurrency 95
S posting 122 posted to open fiscal years 146
setup in General Ledger posting methods posting to historical years 127
account history 50 described 57 printing history 188
account segments 41 examples 58 quick journals 53, 111
beginning balances for mid-year 48 profiles described 57 reconciling from Payables
beginning balances for new year 45 retroactive 121 Management 177
budget journal entry numbers 10 setting up 59 reconciling from Receivables
budgets 79 voiding 123 Management 177
budgets for single accounts 82 warning options 61 removing history 188
budgets in Excel 70 transaction distributions, linking 135 reports 102
default entries 9 Transaction Entry window reversing 101
deferral profiles 61 displaying 101 single-account inquiries 147
divisional retained earnings accounts entering beginning balances 46 standard 101
39 entering beginning balances mid-year taxes 103
financial statements 164 49 understanding quick journals 53
fixed allocation accounts 29 transaction history in General Ledger voiding clearing transactions 108
journal entry numbers 10 described 45 voiding quick journals 113
preparations 9 keeping 10 voiding saved reversing transactions
quick journals 53 Transaction History report, printing 189 102
revenue/expense deferrals 59 transaction inquiries voiding saved standard transactions
single retained earnings accounts 37 posted transactions 102
transaction matching 13 historical years 147
unit accounts 25 open fiscal years 148 U
user preferences 9 transaction matching Unit Account Maintenance window,
variable allocation accounts 33 archiving links 190 displaying 25
Setup List, printing 12 creating groups 136 unit accounts
single retained earnings accounts, described 13 budgets 70
described 37 linking distributions 135 comparison to posting accounts 25
Single-Account Budget Maintenance modifying links 136 deleting 26
window, displaying 83 setting up 13 described 15
standard transactions Transaction Matching Group Maintenance inactivating 26
described 101 window, displaying 137 modifying ranges 43
entering 101 Transaction Matching Setup window, posting 26
starting and ending dates, for budgets 78 displaying 13 setup 25
Statement of Cash Flows transaction-level posting Unit Accounts List, printing 26
described 164 dates 126 upgrade information, accessing on the
method used 164 described 125 Web 5
setting up 164 transactions user preferences, setup 9
Statement of Changes, accounts 15 adjusting budgets 84 utilities
Statement of Retained Earnings budget summary inquiries 145 reconciling 187
described 164 transactions in General Ledger removing history 188
setting up 164 allowing correction 11

198 G E N ER AL LE D G ER
 I N D E X

V
Value-Added Taxes (VAT)
described 103
reports 185
variable allocation accounts
breakdown accounts 33
deleting 35
described 33
inactivating 35
modifying ranges 43
percentages 34
posting 33
setup 33
Variable Allocation Accounts List,
printing 35
Variable Allocation Maintenance window,
displaying 34
VAT Return, printing 185
VAT Return window, displaying 185
View menu
entering an account alias 19
selecting functional or originating
currency 95
voiding, deferral transactions 123

W
what’s new, accessing 5
workflow, batches approval in General
Ledger 98
worksheets, formats for Microsoft Excel
budgets 75

Y
year-end closing in General Ledger
effects 181
preparations 182
procedure 183
Year-End Closing report
described 182
printing 184
Year-End Closing window, displaying 184
years, posting 125

GENERAL LEDGER 199