Parameter settings govern ‘behind the scenes’ settings and default values within Dynamics 365. Each module has its own parameter setting requirements, however, the General Ledger parameter section governs transactional requirements across all modules in some instances. Several parameter settings have been set as default as part of the standard GYDE365 deployment. This section of the survey covers key questions to ask in relation to parameter settings.
Below are additional help requirements for some questions in this section.
Journal Voucher Duplication
Voucher numbers are assigned to transactions when the transaction is created. These can be manual (not recommended) or automatically generated and based on several criteria to define the structure.
This parameter question defines the control of the number sequence when creating the transaction.
- Reject duplicate : This automatically rejects the voucher number if it is a duplication of a previous number for this transaction type. This situation would primarily occur if the voucher number was set to manual or the sequence is reset.
- Reject within fiscal year : This would reject the voucher number if it is a duplication of a previous number for this transaction type in the same financial year. This situation would primarily occur if the voucher number was set to manual or the sequence is reset.
- Accept duplicate : No duplication control is applied
- Warn in case of duplicates : This will flag a warning if the voucher is a duplication of a previous number for this transaction type. The user can decide to override or reject.
Cash Balance Control
Cash balance control allows the governance of a Main account to ensure balances do not become negative through transaction postings.
For example, if you set Main account “Bank Savings Account” to have Cash Control, any transaction or journal posting will fail, if the result of the transaction would be a credit balance on the account.
If ‘Yes’ is selected, there are additional configuration requirements:
- Select the Financial Dimension Set used to calculate cash balance, if required : This option allows a more detailed calculation of the cash balance, incorporating various financial dimensions to be included when calculating if this transaction will make the balance negative.
- Select the user group that can override cash balance posting restriction, if required : This option would restrict the posting – if the balance would become negative as a result of the transaction – but allow with an authorised sign off from a member of the relevant user group.
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Values Used for Summary Account
Values used for Summary Account is required if financial dimensions are used on the control account posting of a sub-ledger transaction (purchase invoice/sales invoice, etc.). Essentially, this is the posting governance if the financial dimension differs between the default financial dimension on the master record (supplier account/customer account) and the financial dimension on the transaction (purchase invoice/sales invoice).
- Source Document – This will inherit the financial dimension on the master record on the control account posting
- Accounting Distribution – This will inherit the financial dimension on the transaction line on the control account posting
Values are defined in the General Ledger parameters in the Ledger section.
The default Financial Dimension on a supplier record is set to ‘001’, as shown below:
When posting a purchase invoice for this supplier (in this example Acme Office Supplies), if the invoice line has a financial dimension of ‘002’ and the parameter is set to ‘Source Document’, the financial dimension on the control account posting will be ‘001’.
Storno accounting is the practice of using negative numbers to reverse original journal account entries.
For example, if this recorded transaction was posted in error:
Purchase expense account: 10,000
Creditors control account 10,000
To reverse the following transaction using Storno accounting:
Purchase expense account: -10,000
Creditors control account: -10,000
Each reversing transaction appears in the same debit or credit column as the original transaction and as such “zero out” the original transaction.
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Financial Year End Process
There are several parameter requirements that govern the year-end process;
Delete close of year transactions during transfer: Select this option to delete opening transactions and system-generated closing transactions that exist for the year, to be closed when the transfer is processed. As best practice, this would default to ‘Yes’. If this is set to ‘No’, the transactions will be ‘undone’ instead of deleted.
The difference between “undo” and “delete” is explained as follows;
When you run the year-end process in Dynamics 365, these options are required:
Select Undo previous close in the drop-down dialogue menu when running the year-end close process to delete all closing balance and opening balance entries, as if the year-end close had never been run. The vouchers will be deleted. The year-end close will not run again automatically. To run the year-end close, you must initiate this process again, this time changing Undo previous close to ‘No‘
The Delete close-of-year transactions during transfer parameter in General Ledger is used only when running (not undoing) the year-end close (the Undo previous close selection is set to ‘No‘). If that parameter is set to ‘Yes‘, all closing balance and opening balance entries will be deleted and the year-end close will run again. This process is used when the organization wants all transactions, including adjustments since the last year-end close, to be posted in a single accounting entry for the closing balance and opening balance entries.
If this option is set to ‘No‘, all closing balance and opening balance entries remain. They are not deleted. Instead, a new closing balance and opening balance entry will be created for only the delta or new transactions posted since the last year-end close for that fiscal year.
The closing balance entry is created in the year being closed. This only occurs if the Create closing transactions during transfer parameter in General Ledger is set to Yes. The opening balance entry is always created because this is the beginning balance for the next year.
Create closing transactions during transfer – If this option is selected, closing transactions will be created in the current financial year to set the Profit and Loss to zero. If this is set to ‘No‘, opening transactions are created in the new financial year only.
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