Reconciling a bank statement with all the bank account transactions created in a period can be a daunting and cumbersome task. Microsoft Dynamics AX 2012 provides easy to use functionality which makes reconciling a bank account a quick and painless exercise.
To reconcile a bank account, begin in the Cash and Bank Management functional area by following navigation path:
Cash and bank management > Common > Bank accounts
Select the bank account and click the Account Reconciliation button to open the Bank statement form.
Enter a Bank statement date, a Bank statement name and the ending balance of the bank account as it appears on the statement received from the bank.
Click the Transactions button to open the Account Reconciliation form.
The top portion of the Account reconciliation form lists the transactions which have not yet been reconciled.
Mark each of the transactions on the bank statement in AX by clicking the Cleared checkbox on each transaction line.
As you mark the transactions as ‘cleared’, the bottom portion of the form shows the sum of the transactions selected grouped by Bank transaction group.
The Unreconciled field also adjusts automatically as you mark transactions as cleared and shows the remaining amount to be reconciled.
If you wish to select the Cleared checkbox for all of the lines within an interval of check numbers on the bank statement, click the Mark check interval button. Select the first check number and last check number in the sequence. All of the lines associated with this check sequence will then be selected as ‘Cleared’.
Recently, we received the question of whether a user could enter a journal entry for an adjustment to a closed year in Dynamics GP. The answer is that, this is possible depending on how far back you need to post. The rule follows that you cannot post to more than one closed year. So if I have closed 2012, I can only post back to 2011 and no further. As such, when closing the current year, it is a good idea to verify that all closing entries and adjustments to the previous year have been made.
Let’s say you are ready to close 2012 but need to post a JE adjustment for 2011. To do this, you will need to reopen the fiscal period in which you will be posting by navigating to the Fiscal Periods Setup window. Go to Microsoft Dynamics GP > Setup > Company > Fiscal Periods.
Select the year that needs to be reopened. Then, deselect the appropriate checkbox corresponding to the period and module you need to reopen. In my case, I have deselected the Financial module for December of 2011 because I need to make a journal entry adjustment to December 2011
Next, you will need to verify that you are allowed to post to history. Verify that the Allow Posting to History option in the General Ledger Setup window is selected. Go to Microsoft Dynamics GP > Tools > Setup > Financial > General Ledger.
Now, you are ready to create and post your transaction entry for the closed year. Once you are finished, go back to the General Ledger setup and unmark the Allow Posting to History option (you may leave it marked if that is the default setup), and close the same fiscal period that was opened earlier, using the Fiscal Periods Setup window.
General Ledger Setup – Microsoft Dynamics GP > Tools > Setup > Financial > General Ledger
Fiscal Periods Setup – Microsoft Dynamics GP > Setup > Company > Fiscal Periods
If you do need to post to more than one closed year, Microsoft does offer a service to achieve this. For more information, please contact email@example.com.
Reporting in multicurrency in Microsoft Dynamics AX 2012 is achieved through the use of currency translation within the consolidations function. For example, a subsidiary operating in functional and reporting currency of EUR for local statutory requirements, but required to report in USD for its parent company in the US.
First a consolidation legal entity must be created with functional and reporting currency of USD:
a) Navigate to Organization administration>Setup>Legal Entity: check “Use for financial consolidation process”
b) Navigate to General Ledger>Setup>Ledger to configure the Ledger for the consolidation company;
- Assign the same COA and calendar as that of the subsidiary, assign USD for functional and reporting currencies.
c) Navigate to General Ledger>Setup>Posting>Accounts for automatic transactions
- Define the main account for the transaction types “Profit and loss account for consolidations differences and “Balance account for consolidation differences.” These are the accounts where the exchange rate adjustment will be posted.
Exchange rate types for average, period end, and historical rates must be defined between USD and EUR:
d) Navigate to General Ledger >Setup>Currency>Exchange rate types
- Create rate types of average, period end and historical. Enter the related exchange rates for each type by selecting the “Exchange rate” button. These exchange rate types are assigned to a range of main accounts in consolidation for balance sheet, income statement and equity in order to achieve currency conversion results in accordance with GAAP.
With the consolidation company created, the consolidation and currency translation process must be configured.
e) Navigate to General Ledger>Periodic>Consolidate>Consolidate [Online]
- Criteria Tab> select the account range for all main accounts to be translated and consolidated, the period , check include actuals and include budgets if budgets exist.
- Financials Dimension Tab> select the financial dimensions to be consolidated
- Legal Entities Tab> Select the subsidiary EUR and which account, Balance or P&L, for the exchange rate adjustment. This correlates to the setup from step c) above
- Description tab> this description will be the default text for the voucher created in the consolidation
- Elimination tab is utilized for the processing of eliminating transactions which is not a requirement for currency translation in consolidation and can be left blank
- Currency translation tab> define which currency exchange rates will be utilizes with various main accounts.
- Enter the subsidiary name (source legal entity name), the functional currency (source accounting currency) the main account range (from account /to account) and the associated exchange rate type to be applied to the local currency during the consolidation process (Exchange rate type).
- For each account range in 1 above, select the Exchange rate date which indicates if the exchange rate should be based on the transaction date or the date of the consolidation.
- A specific rate can also be used by entering the specific exchange rate in the Exchange rate field. This will override all other rate selections.
Run consolidation by selecting “Ok”.
To view the consolidation results navigate to General Ledger>Inquiries>Consolidations. Select “Transactions” to view the voucher entries created by the consolidation. Results can also be reviewed through the numerous general ledger standard reports such as the trial balance and ledger transaction list.
Does the Release of Management Reporter 2.0 Affect You?
With the release of Microsoft Dynamics 2010, Microsoft has also released their new reporting tool, Management Reporter, to replace FRx 6.7. While Microsoft is requiring all new Dynamics GP 2010 customers to utilize Management Reporter, existing users running prior versions of Dynamics GP can continue to use FRx 6.7, even with an upgrade to Dynamics GP 2010. Microsoft will continue to support FRx 6.7 through the end of the Dynamics GP 10.0 lifecycle.
Management Reporter has several new features which gives it an edge over FRx. It allows for windows authentication, version management of the reports and supports reporting on dimensions based data such as departments, locations, and cost centers. Additionally multicurrency reporting in Management Reporter is now driven from existing rate tables within Dynamics GP 2010, eliminating the need to maintain separate rate tables to facilitate this kind of reporting.
Additional features that users have been asking for in FRx, such as column breaks, undo and redo function and the ability to import images into the header and footer of the reports are now available in Management Reporter.
There are a few limitations of Management Reporter that should be considered in making the decision to upgrade, however there are available workarounds to mitigate these shortcomings.
With all of its new features Management Reporter still utilizes many of the same concepts as FRx enabling users to apply their FRx knowledge as they transition to Management Reporter. It has a similar look and feel for the setup of rows, columns and reporting trees with a slight variation of terminology. The dropdown boxes in the row and column definitions will provide selection FRx users are familiar with and have a few new selections of added functionality. A migration wizard is available to convert existing row, column, tree and report definitions, report catalogs, account sets and company information to new Report Definitions in Management Reporter, making the transition fairly seamless.