Depending on your company’s requirements, it is often needed to track additional types of data for financial reporting. Many times, segments in the general ledger account structure are used to facilitate this requirement. With Microsoft Dynamics GP, there are ways to accomplish this outside of the COA, even if it has already been configured to include those segments! Analytical Accounting (AA) is a very powerful tool that allows additional codes to be added (required or optional) for any amounts hitting specific GL accounts.
The steps to do this are as follows. A historical company database should be created to maintain the data from before any changes have occurred. Historical balances for net changes (per year, month, week, etc…) should be exported into Excel. This will be used to re-map these amounts into the Analytical Accounting Codes.
Next, the PSTL tool to update the COA will be used to remove the un-needed segments. Analytical account will then be activated and configured. The new GL accounts will be assigned to Analytical Accounting Classes that will dictate whether AA codes are required, optional or not allowed. There are two main ways of bringing over the AA cutover data (that used to be in the GL). The first option is to use the Edit Analysis window to update Journal Entry numbers with AA codes. This option allows all detailed entries to be converted. The second option is to bring the net changes per period (year, month, week) using GL entries that are a wash. For instance, the AA code will be setup as optional (thus not requiring a code to be entered on both sides of the entry. The entry will be created as a debit and credit to the same account, BUT, the AA code information will only be entered on the appropriate side of the entry.
Testing and changes to Management Reporter may be needed (and are recommended) to complete this conversion process. As always, if any further details need clarification – please contact us!
This article was written by Kaydee Baker, Practice Manager for Tridea Partners. Tridea is a leading Microsoft Dynamics provider.