General Journal : Some interesting facts about Delete Lines and Lines Limit

Delete Lines after posting : If clicked, then the journal lines are deleted the moment the journal is posted. The journal header still exists in the journal list if the user selects Show : ALL, however if clicked on the Lines button for that journal, then system displays an empty journal without lines.
Such journals will NOT be visible if user selects Show: POSTED, even if the journal is posted.

Lines Limit: This refers to the number of vouchers and NOT physical lines in the journal. For example, if a journal has lines limit of 2 and if the user multiline journal (one debit and several credit lines to balance it). In that case as long as the journal voucher balances, that whole voucher will be considered as one line. Now suppose the user enters two more single line offset vouchers apart from the one multiline discussed above. If the user now tries to post it, AX allows the posting, but because of the lines limit, ONLY 2 lines are posted for that journal and the remaining one line is poste in another journal. The infolog displayed after the posting, gives this message to the user.

Interesting thing to note here is that the next journal that is created for that one line also has a lines limit of 2. So to test this I created one more journal with lines limit of 2 and created 5 lines (vouchers, mix of single line and multiline). This time after posting I got an infolog saying that the 2 lines are posted in the current journal, while the next two lines are posted in the next sequential journal and the remaining one line is posted in yet another sequential journal. This was an interesting yet un-important fact to know...!

Thanks!

AXAPTAMANIAC
 

General Ledger Parameter : Accouting Distributions OR Source Document

General Ledger Parameters has one of the most important parameter called, "Value Used for Summary Account", and the options are:

1. Source Document
2. Accounting Distributions

What happens when either of the one is selected ?? Lets see...

This parameter is set at the beginning of the company setup, before any transactions are posted. This can be changed later, system allows it. But it is advisable that it shouldn't be changed, as it will mess up the entire reporting for the transactions.

This parameter decides whether the amount posted to the summary / control account should be distributed amongst the Financial Dimensions or not. This is very useful decision, as some companies might track the finances as per the financial dimensions (for e.g. Department, Cost Centre etc.) while some may not.

To understand this myself, I first created a purchase order and then added some charges to it by using the "Manage Charges" and "Allocate Charges" feature. Just before invoicing the PO, I changed the dimension of the charges line by using the "View Distributions" and "Distribute Amounts"  feature. And then posted the invoice. I performed the same steps for both the settings, namely "Source Document" and "Accounting Distributions".

Source Document: When the setting was "Source Document", even after me manually distributing the charges amount to different financial dimension (Business Unit, in this case), the entire amount (the invoice amount + the charges) were posted collectively ones to the summary / control account (the Accounts Payables account). This setting followed the dimension of the header of the PO.

Accounting Distributions : When the setting was "Accounting Distributions", after I manually distributed the charges amount to different financial dimension (Business Unit, in this case), the invoice amount was posted separately to the summary / control account (the Accounts Payables account) with the dimension it was supposed to be posted AND the charges amount was posted separately to the summary / control account (the Accounts Payables account) with the other dimension which was manually changed by me . This setting followed the dimensions that were given by the user. In this case the amount was posted to the summary / control account itself, but the only difference was, the amount was bifurcated to different financial dimensions. Hence now if the user wish to find out the charges per dimension, he can easily find out the dimensions consuming the least and the most charges. This can help him make better decisions.

For e.g.: The Invoice Amount = 302.71 USD and the Charges = 50 USD

Source Document

Accounting Distributions

 Please note these distributions to different financial dimensions are to be done manually.

Thanks!

AXAPTAMANIAC
 

Foreign Currency Revaluation in Dynamics AX 2012

I tried to run through this process in Dynamics AX 2012 R2 and following was the process and related findings.

1. First I setup all the accounts namely:
1. Unrealized Profit (Asset)
2. Unrealized Loss (Liability)
3. Realized Profit (Revenue)
4. Realized Loss (Expense)
2. Then I created a foreign currency in the system and also entered the exchange rates for the same for few days.

I basically wanted to see when these accounts are hit when the transactions related to foreign currency are posted. I did post two type of transactions namely:

• One without using the Unrealized Profit/Loss accounts
• One with Unrealized Profit/Loss accounts

Now what does this mean. This means that I tried the foreign currency transactions one with Foreign Currency Revaluation Process and one without Foreign Currency Revaluation Process.

For the transactions where I did NOT ran the foreign currency revaluation process, the Realized Profit / Loss accounts were direct hit. for e.g.:

I posted an AP Invoice journal in foreign currency. Then immediately after that I posted the AP Payment journal for the same, but on a different date with different exchange rate. This time the transaction was posted but directly hitting the Realized Profit and Loss accounts.

Then I tried to change the process a bit, by introducing the Foreign Currency Revaluation process in it. This time I posted an AP Invoice Journal and then I ran the Foreign Currency Revaluation process for a different date with different exchange rate. The posting that happened this time hit the Unrealized Profit / Loss accounts. Accordingly they also hit the control accounts (Trade Creditors in case of Vendor Account and Trade Debtors in case of Customer account). After this I posted the AP payment journal. After the payment journal was posted, it hit the Realized Profit / Loss account and at the same time reversed the entries in the Unrealized Profit/Loss account.

So the conclusion is the entries registered in the Unrealized Profit  / Loss accounts are nothing but a provision to accommodate the fluctuating exchange rate. This also makes the Balance sheet more accurate, as you have made a provision for the potential profit and loss that may or may not occur in future due to change in exchange rate.

It is not mandatory to use the Unrealized Profit / Loss accounts on a monthly basis during the monthly closing. Some companies only use Realized Profit / Loss accounts for the entire year and at the end of the year they will run the Foreign Currency Revaluation to make provision for the unrealized profit and loss.

Hope this was useful enough. Till next time happy exploring new things in AX.

Thanks!

AXAPTAMANIAC