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GP2010 Enus GL 01
GP2010 Enus GL 01
Introduction
Welcome to Microsoft Dynamics GP General Ledger, an integral component of the financial management system. Microsoft Dynamics GP offers a streamlined solution to the total business needs of a company by providing financial information quickly, efficiently, and accurately. General Ledger provides the fiscal insight needed to make better and timelier business decisions. This chapter focuses on the windows that are used to set up General Ledger. The system setup checklist can be used to assign users to specific tasks and to track which tasks they have completed. This checklist is available in the application and can be used to track all setup windows in Microsoft Dynamics GP. The setup windows can be located using the paths provided in the paragraph below the heading for each window. Steps covered include setting up the chart of accounts, categories, account segments and budgets.
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Customized financial statements can also be created using Advanced Financial Analysis to meet the specialized needs of the business. General Ledger also provides a variety of flexible features users are encouraged to become familiar with to take advantage of the software's fullest capabilities. General Ledger is used to: Record transactions Verify accuracy Post transactions Maintain history Maintain budgets Create quick financial reports
Record Transactions
Transactions can be entered as single-use, clearing, reversing, or recurring in General Ledger. You can also perform the following when recording transactions: Void saved transactions Copy posted transactions Back out and correct posted transactions (if necessary)
NOTE: You can also determine how often recurring transactions are posted: weekly, monthly, or a specified number of days.
Transactions can also be entered in an unlimited number of user-defined quickjournals that parallel traditional accounting journals, such as the cash receipts journal or cash disbursements journal.
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Post Transactions
Microsoft Dynamics GP offers several methods of posting transactions: Individually, using transaction-level posting In a batch using batch posting In a batch using series posting In a batch using master posting
Transactions are usually posted to the current fiscal year in General Ledger. They can also be posted to a prior year or to future periods of the next fiscal year, if necessary. Microsoft Dynamics GP uses background processing, which allows work to be continued while the system posts.
Maintain History
Unlimited years of historical information can be maintained within General Ledger. History is updated during the year-end closing process when open year balances become previous year balances. Multiple years of historical information also can be included on a single financial statement.
Maintain Budgets
Unlimited budgets can be maintained with General Ledger. Budgets can be set up for individual accounts or for a range of accounts. Several budget variations may be created to use as financial forecasting tools for planning and controlling resources. Microsoft Office Excel can be used as the budgeting tool and the Excel Budgeting link can be used to seamlessly import budget information into Microsoft Dynamics GP from Microsoft Excel. Budget transactions also can be entered and historical records kept just like regular transactions.
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Integration
Integration is defined as the process of linking two or more modules to form a comprehensive business management system. When Microsoft Dynamics GP is installed, features and functionality are integrated automatically. Information is shared between functional areas, making data entry faster, easier, and more accurate. More importantly, more detailed reports can be printed than is possible in a manual accounting system, because sales and purchasing information can be combined and analyzed in General Ledger. Transactions flow between modules so they do not have to be entered multiple times in the application. For example, a purchase order entered in Purchase Order Processing updates the vendor account in Payables Management and ledger accounts are updated in General Ledger when the transaction is posted.
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Before setting up General Ledger, ensure the Company Setup and Posting Setup procedures are completed. If these tasks are not completed, be sure to do so before continuing with the procedures in this course. The information and selections entered in this window appear as defaults for General Ledger transaction entry and inquiry windows. History options are also made in this window. User-defined labels for accounts are also assigned in this window.
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The display method selected in the General Ledger Setup window is used throughout Microsoft Dynamics GP; however, the display method usually can be changed when the account balances are displayed, or in some windows both methods are displayed.
Retained Earnings
Skip this field at this time because it is necessary to enter the chart of accounts before a retained earnings account is identified. Return to the General Ledger Setup window later and identify a retained earnings account after entering posting and fixed allocation accounts.
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HINT: If FRx or Management Reporter is used to generate financial statements, it is not necessary to update the accelerator file. The accelerator file is not used with these applications.
Reporting Ledgers
Select the Allow check box in the Reporting Ledgers section of this window to use reporting ledgers. Three ledgers are created. The ledger names cannot be edited, but ledger descriptions can be edited, if necessary. The following ledgers are created: IFRS: Represents the International Financial Reporting Standards (IFRS) ledger, where the transactions will be applied for IFRS accounting policies. LOCAL: Represents the local ledger, where the transactions will be applied for local accounting purposes. BASE: Represents the base ledger, where the transactions will be applied for both purposes (local and IFRS).
Use multiple reporting ledgers to identify transactions for local Generally Accepted Accounting Principles (GAAP), IFRS, or other accounting purposes and define reporting ledgers for each purpose.
NOTE: You cannot add, delete or insert additional reporting ledgers. Once the Allow check box is selected and saved by clicking OK on the General Ledger Setup window, it cannot be cleared. If reporting ledgers are activated, any existing transactions that exist are assigned to the BASE ledger.
Once reporting ledgers are activated, transactions entered in Transaction Entry default with the BASE ledger selected as the reporting ledger. The reporting ledger can be edited in the Transaction Entry window.
NOTE: To display a General Ledger cash account balance in Checkbook Maintenance for a specific reporting ledger, select the ledger in the Account Balance for Subsidiary Windows field.
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Account Categories
Use the Account Category Setup window to view, add, and edit categories. To open this window, click the Financial series button, and then click Category on the Setup content pane.
Microsoft Dynamics GP General Ledger provides 48 predefined account categories. These categories are used to group accounts on the quick financial statements. Categories can also be used with Advanced Financial Analysis and sort certain reports by account category. The default list includes categories such as: Cash, Short-Term Investments, and Notes Receivable.
Customizing Categories
Account categories can be customized by changing their descriptions; however, a predefined category cannot be deleted or left blank. Additional categories can be added to the end of the list which can be deleted by clicking Edit Row and Delete Row.
HINT: When editing existing account category descriptions, remember that the Quick Financial reports use the account category number, not the description, to determine the placement of the category on a financial statement. Therefore, edit descriptions to meet the company's needs, but do not change the purpose of a category. If a category is needed that is not listed, add it to the bottom of the list.
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Posting accounts are the financial accounts that track the assets, liabilities, revenue, expenses, and equity. Transactions posted to these accounts appear on the Profit and Loss Statement, the Balance Sheet, and other financial reports. There are four types of accounts in Microsoft Dynamics GP: Posting Unit
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HINT: Prior to setting up posting accounts, set up an account format in the Account Format Setup window and enter fiscal periods in the Fiscal Periods Setup window.
Alias
An alias is a 20-character short name for an account. The alias can be entered instead of the account number during data entry and in other windows where account numbers are entered. For companies that use a large account number structure, using an alias allows for quicker data entry. Wherever account numbers appear throughout the system, account numbers can be selected either by alias or by the full account number. A lookup list of accounts sorted by alias is available.
Category
Specify the account category to which this account will be assigned. The account category determines where this account is printed on financial statements. You must select from the list of existing account categories. To add additional account categories, refer to the Account Categories topic discussed earlier in this course.
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HINT: If unsure of an account's posting type, the General Ledger printable manual lists the 48 account categories provided with General Ledger, their type, and the financial statements that contain each of the account categories. This manual is available from the Help menu in Microsoft Dynamics GP.
Next, indicate whether the account's typical balance is a debit or credit. Asset and expense accounts normally have debit balances; liability, revenue, and equity accounts normally have credit balances. The Typical Balance field determines when brackets print on reports. For example, if a cash account is assigned a Typical Balance of debit, and the account has a credit balance, the balance will appear in brackets on the reports.
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Window Buttons
Click Summary in the Account Maintenance window to view the period balances of each posting account by period or net change for any open year. Balances do not appear until transactions entered for the account are posted. Click History to view the summary period balances from a historical fiscal year. This window can also be used to enter previous year historical information to print comparative financial statements. To enter historical figures, enter and post transactions to the historical year. Selecting Account History from the Cards content pane also opens this window.
HINT: If summary historical information is entered using this window, the reconcile utility cannot be used on the historical years entered. Using the reconcile utility sets the summary amounts to zero.
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Challenge Yourself!
Use the following information to add a new posting account: Field Account Description Category Value 000-1900-00 Building Property, Plant and Equipment
Step by Step
1. Open the Account Maintenance window (Cards > Financial > Account). 2. Enter the following information: a. In the Account field: 000-1900-00 b. In the Description field: Building c. Click the lookup button next to the Category field and select Property, Plant, and Equipment and then click Select.
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Unit accounts can be included on financial statements for calculation purposes but do not make a financial impact. Use the Budget and History buttons to enter budget and historical information for unit accounts. Before setting up unit accounts; set up the company's fiscal periods in the Fiscal Periods Setup window and define an account format in the Account Format Setup window.
HINT: If the lookup window is used for the account field in this window, it lists only unit accounts.
Unit accounts are set up and used as follows: Assigned to the non-financial category A debit is entered to increase the quantity A credit is entered to decrease the quantity Enter and post a one-sided transaction to affect quantity Do not affect transaction totals or the trial balance report totals
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Descriptions for unit accounts function in the same manner as posting account descriptions. Enter a description up to 50 characters.
Alias
An alias is a 20-character short name for an account. The alias can be entered instead of the account number during data entry and in other windows where account numbers are entered. For companies that use a large account number structure, using an alias allows quicker data entry. An alias is another way to identify an account.
Decimal Places
Specify the number of decimal places for formatting the unit account. The default is two decimal places. Formatting unit accounts using decimal places allows for more accurate calculations; for example, rather than entering 50 square feet, a more precise entry of 50.25 square feet can be made.
Year
This field is available to display period balances or net change based on any of the open years. Once a year is selected, the scrolling window populates with information based on the selection.
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Challenge Yourself!
Use the following information to add a new unit account: Field Account Description Decimal Places Value 400-9010-01 Square Footage - Installation 0
Step by Step
1. Open the Unit Account Maintenance window (Cards > Financial > Unit Account). 2. Enter the following information: a. Account: 400-9010-01 b. Description: Square Footage - Installation c. Decimal Places: Zero
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When transactions are posted to fixed allocation accounts, the amounts are dispersed to the distribution accounts based on the percentage defined when creating this account.
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Even though the utility expense may vary each month, the percentages for distribution remain fixed. The percentages entered can be changed for each distribution account at any time.
HINT: When the allocation percentages are changed on a Fixed Allocation account, the new percentages are only used on transactions posted after the change. The new percentages do not affect previously posted transactions.
Allocation accounts do not appear on the financial statements because they do not have balances; the amounts posted to allocation accounts are reflected in the balances of the distribution accounts.
Descriptions for fixed allocation accounts function in the same manner as posting account descriptions. Enter a description up to 50 characters.
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For example, to track expense accounts in detail and cash accounts in summary, select Detail for the level of posting for expense accounts and Summary for the level of posting for the cash accounts.
HINT: These settings are only used when a transaction origin is set to create a journal entry for each batch and the Use Account Settings option is selected in the Posting Setup window.
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NOTE: 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 cannot be assigned as a distribution account for another allocation account. There can be up to 10,000 distribution accounts for one fixed allocation account.
Inactive
Select this check box to inactivate the account. A cleared check box indicates that the account is active. It might be beneficial to inactivate a fixed allocation account temporarily, if allocation percentages are changing to avoid any posting to the account until the percentages are changed.
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Challenge Yourself!
Enter the telephone expense account (000-6510-00). Use the following as the distribution accounts and appropriate percentages: Account Number 100-6510-00 200-6510-00 300-6510-00 400-6510-00 500-6510-00 600-6510-00 Percentage 10% 20% 15% 10% 15% Appropriate remaining percentage
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Step by Step
1. Open the Fixed Allocation Maintenance window (Cards > Financial > Fixed Allocation). 2. Enter the following information: a. In the Account field, enter 000-6510-00. a. In the Description field, enter Telephone Expense. b. In the Distribution Account scrolling area enter the following accounts with the indicated percentage in the Percent column: Account 100-6510-00 200-6510-00 300-6510-00 400-6510-00 500-6510-00 600-6510-00 Percentage 10% 20% 15% 10% 15% 30%
3. In Include in Lookup, select the Purchasing series 4. Click Save to save the account.
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Like fixed allocation accounts, variable allocation accounts distribute percentages of a single transaction to several different accounts. Unlike fixed allocation accounts, variable allocation accounts do not rely on fixed percentages to calculate the amounts that may be posted to the distribution accounts. Variable allocation accounts distribute transactions based on additional factors that may change over time, such as the number of employees or the physical size of the business' departments. These additional factors are tracked by breakdown accounts which can be posting accounts (sales and expenses), or unit accounts (the number of employees for each 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. These percentages do not need to be entered; the system calculates percentages based on the varying balance of each breakdown account. Each time you post to a variable allocation account, the percentages may vary because the balances of the breakdown accounts may have changed, and those balances determine the percentages allocated to the distribution accounts. The system calculates the percentages during the posting.
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Variable allocation accounts do not appear on financial statements because they do not have balances; the amounts posted to variable allocation accounts are reflected in the balances of the distribution accounts.
Account
Account numbers for variable allocation accounts function in the same manner as posting account numbers. Any combination of letters or numbers can be entered to define the account number up to the maximums specified for the company.
HINT: Variable allocation account numbers must be unique throughout the system, including posting and unit accounts.
Descriptions for variable allocation accounts function in the same manner as posting account descriptions. Enter a description up to 50 characters.
Alias
An alias is a 20-character short name for an account. The alias can be entered instead of the account number during data entry and in other windows where account numbers are entered. For companies that use a large account number structure, using an alias allows quicker data entry. An alias is another way to identify an account.
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Determine whether the system will calculate the percentage based on the account's transaction period balance, which is 300 USD , or the account's year-todate balance, which is 600 USD.
For example, to track expense accounts in detail and cash accounts in summary, select Detail for the level of posting for expense accounts and Summary for the level of posting for cash accounts. These settings are only used when posting batches and Use Account Settings is selected in Posting Setup for the origin where the transactions are entered.
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Challenge Yourself!
Set up the Utilities Expense account, 000-6190-01, as a variable allocation account. Use the information in the following table for the distribution and breakdown accounts. Base the distributions on Year-To-Date (YTD) balances. Distribution Account 100-6190-00 200-6190-00 300-6190-00 400-6190-00 500-6190-00 600-6190-00 Breakdown Accounts 100-9010-00 200-9010-00 300-9010-00 400-9010-00 400-9010-01 500-9010-00 600-9010-00
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Step by Step
1. Open the Variable Allocation Maintenance window (Cards > Financial > Variable Allocation). 2. Enter the following information: a. Account: 000-6190-01 b. Description: Utilities Expense c. Based On: Year-To-Date 3. Verify that Level of Posting from Series are all set to Detail 4. In Include in Lookup select all series, if not selected, by clicking on the first item in the list, holding down the Shift button, and selecting the last item in the list 5. Use the information in the following table for entering the distribution and breakdown accounts. a. Enter the first Distribution Account under the appropriate column then the corresponding Breakdown Account under the appropriate column area. b. Once the first Distribution Account and Breakdown Account are entered, click a blank row under the Distribution Account column, and then enter the next Distribution Account and corresponding Breakdown Account
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Segment titles appear on reports and financial statements if they are selected to print for specific account segments. For example, if accounts are created for three stores, and the first segment is used to differentiate the accounts for each store's location, segment definitions can be used to identify locations 100, 200, and 300 as North Store, South Store, and Downtown Store, respectively. If Inventory Control is used, use one of the segments to specify sites. When transactions are posted that affect inventory, such as sales transactions that reduce inventory at a specific site, Microsoft Dynamics GP substitutes the appropriate segment for the site. For example, you want to monitor when cash, accounts receivable, and rent expense are entered separately for each store. Separate accounts can be set up for each store's cash, accounts receivable, and rent. When financial statements are printed, the accounts can be sorted by the first segment, separating each store's accounts, or by the segment identifying the type of account, such as cash or accounts receivable. When new accounts are entered in General Ledger with a new segment value, a segment description can be added and it will default for each account entered with that segment value. This can help speed up account entry, especially if a new segment is added after completing a previous segment.
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Challenge Yourself!
Enter the segment description for the 900 department (first segment) as Promotions.
Step by Step
1. Open the Account Segment Setup window (Microsoft Dynamics GP > Tools > Setup > Financial > Segment). 2. Select the first segment from the lookup list in the Segment ID field. 3. In the Number field enter 900. 4. Enter Promotions in the Description field. 5. Click Save to save the segment description.
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Use this window to perform the following actions in the chart of accounts: Copy accounts Move accounts Delete accounts Inactivate accounts Update accounts
This includes default accounts that can be installed with the system and accounts that are entered in the Account Maintenance, Unit Account Maintenance, Fixed Allocation Maintenance, and Variable Allocation Maintenance windows. The existing chart of accounts can be edited by: Copying a group of accounts to a new account range, creating new accounts identical to those in the existing range. Moving a range of accounts from one area of the chart of accounts to another. Inactivating or deleting accounts from the chart of accounts.
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Copying Accounts
The contents of an account range can be copied to a new account range by selecting Copy from the list of options in the Modify field. This method can be used if accounts are entered for one location and then later it is decided to add a second location with the same accounts. All the accounts for location one need to be copied, and a new segment number needs to be assigned that identifies the accounts as location two. When copying information from one account to another, balances are not copied, but the following fields are: Account Number Description Typical Balance Account Type Series User Defined 1 User Defined 2 Active/Inactive information
Moving Accounts
A range of accounts can be moved to a new location within the chart of accounts. It might be necessary to move accounts if tasks within the company are shifted from one department to another. For example, you might decide that a particular range of accounts for Department one is no longer needed, however, they can be used for Department two and therefore the accounts need to be moved from Department one to Department two.
HINT: Accounts can be moved only if they have a zero balance and no year-to-date transactions or history information for the account.
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Deleting Accounts
When a range of accounts is deleted from the chart of accounts, all account information is removed. A range of accounts can be selected for deletion if a product line is being closed out and all the accounts and information associated with it is no longer needed.
HINT: When accounts are deleted using this window, they are permanently removed from the chart of accounts. The original information can be accessed by restoring a backup or the accounts can be reentered. HINT: Accounts can be deleted only if they have zero balances, no year-to-date transactions, and no history information.
Updating Accounts
The Level of Posting From Series options for a range of accounts can be updated from the chart of accounts. The selected accounts are updated with the chosen level of posting. For example, it might be necessary to change the level of posting from summary to detail to track additional information for that range of accounts.
Account Range
Indicate whether to modify all the accounts in the chart of accounts, or a selected range of accounts. When specifying a range, select the beginning and ending accounts from the lookup list. All the accounts between the two selected accounts are included.
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For example, to track expense accounts in detail and cash accounts in summary, select Detail for the level of posting for expense accounts and Summary for the level of posting for the cash accounts.
HINT: These settings are only used when a transaction origin is set to create a journal entry for each batch and the Use Account Settings option is selected in the Posting Setup window.
Display
Once the range is specified and the account mask is entered, select how to display the list of accounts. The accounts are sorted by the first account segment, unless a different sorting method is selected. All the accounts in the chart of accounts, or only those included in the range to be modified can be selected to display.
HINT: To ensure that the correct accounts are being modified, choose to view the Selected Range before clicking the Modify button.
Clicking the Modify button executes the modification selection chosen (copy, move, delete, inactivate, update).
HINT: To copy the chart of accounts from one company to another in Microsoft Dynamics GP, contact technical support or refer to the Knowledge database for complete information on this process.
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Challenge Yourself!
Use the Mass Modify function to quickly set up the new cash accounts. Copy accounts with a Main Account segment from 1100 to 1107 assigning the value of "900" to Segment 1 to the new accounts being created.
Step by Step
1. Use the Mass Modify Chart of Accounts window to quickly set up the new cash accounts (Cards > Financial > Mass Modify). 2. Enter the following information: a. Select Copy in the Modify field. b. Select From in the Account field and enter the account number 000-1100-00; in the To field enter 000-1107-00. c. In the New Account Mask field enter 900-????-??. d. Select by Account in the Accounts Segment Sort field. e. Select Selected Range in the Display field. f. Review the list of accounts to be modified for accuracy in the scrolling window. g. Click the Modify button to complete the copy process.
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Retained earnings accounts are used for closing an open year's profit and loss accounts during the year-end closing process. A net income or net loss amount is closed to the Retained Earnings account that is selected in the General Ledger Setup window.
HINT: Only posting and fixed allocation accounts can be used as retained earnings accounts. Unit and variable allocation accounts cannot be used as retained earnings accounts.
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Setting Up Budgets
By using the Budget Selection window, Microsoft Dynamics GP or Excel can be used to create or update budgets. To open this window, click the Financial series button, and then click Budgets on the Cards content pane.
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The following procedures can be performed with budgets: Create new budgets Open and view existing budgets Delete budgets Import or export budgets from Excel
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HINT: To create an Excel worksheet with the correct format, use the Budget Wizard to create a blank worksheet with the accounts specified.
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Importing Options
Excel budget information can be imported into an existing Microsoft Dynamics GP budget, or into a newly created Microsoft Dynamics GP budget. When the budget import process is started, a series of windows open where information about the budget is specified before it is created. The windows are basically the same whether choosing to import into a new or existing budget. However, if choosing to import into a new budget, one additional window, the New Budget Information window appears. This window is used to enter the Budget ID, description and fiscal year information.
1. Open the Budget Selection window. 2. From the Excel drop-down list, click Import from Excel to open the Welcome window of the budget wizard for Excel. 3. Click Next to open the Import Budget window. 4. Decide if the imported budget will be a new budget or if it will overwrite an existing budget. To import the Excel budget worksheet to a new budget, select A New Dynamics GP budget and click Next. To overwrite an existing budget, click An Existing Microsoft Dynamics GP Budget and enter or select the budget. Click Next and continue to Step 8. 5. If creating a new budget, the New Budget Information window opens. Enter basic identifying information about the budget that is created.
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Budget Transactions
Budgets can also be updated by posting transactions using the Budget Transactions window, which is discussed in more detail in a later lesson. Budget transactions can be tracked by selecting to maintain history for budget transactions in General Ledger Setup.
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Budget Maintenance
Use the Budget Maintenance window to create budgets for ranges of posting and unit accounts within Microsoft Dynamics GP. To open this window, click the Financial series button, click Budgets on the Cards content pane, and then click Open and select Using Microsoft Dynamics GP on the Budget Selection window.
Unlimited budgets can be maintained in General Ledger and one of several calculation methods can be used to calculate the budgets. The Budget Maintenance window also can be used to change or delete existing budgets and to recalculate budgets amounts at any time.
HINT: If the budget is going to be based off an historical year, and historical balances are to be entered, do not complete this step until the beginning balances and historical account information is entered.
Enter a new Budget ID, or select an existing budget by using the lookup window. If a new budget is entered, enter a Description that can be used to identify the budget.
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Based On
Select Date Range in the Based On field to enter start and end dates for a budget. If Fiscal Year is selected, no budget start and end date can be entered. Instead, select a Budget Year.
Budget Year
Select a year for the budget to be set up. This tells the system how many periods the budget figures will be calculated for, based on the defined fiscal periods for the year selected.
Actual or Preliminary
Actual or preliminary budgets can be created. Select Actual when the calculation amounts are known to be accurate and there is no need to make any changes. For example, if the budget amounts need to be increased 10 percent during the next fiscal quarter, create an actual budget to reflect those expenditures.
HINT: Changes to actual budgets are permanent. To experiment with budgets, use a preliminary budget where many changes are possible, and it is still possible to revert to the original.
Select Preliminary to experiment with various calculations before committing the amounts to an actual budget. If a preliminary budget is being calculated, and it needs to be saved, make the changes permanent by clicking Actual.
Combine Budgets
Click Combine Budget to combine the selected budget with another budget in Microsoft Dynamics GP. This option is discussed in more detail in the next lesson.
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The most efficient way to set up budgets is to perform the calculations for all the accounts, range by range, in the Budget Maintenance window. It may be easier to view or modify individual accounts in the Single Account Budget Maintenance window, but they can also be viewed in the Budget Maintenance window. When the account range to include in the calculation is selected, click OK to redisplay the Budget Maintenance window.
Calculation Method
Select the Methods button to display the Budget Calculation Methods window. Then enter the calculation information for the range of accounts defined in the Account Segment Ranges window. If a range is not defined, all accounts are included in the calculation. Budgets can be calculated using one of seven calculation methods, and the ability to choose whether the calculation includes posting or unit accounts, or both exists. The calculation methods include:
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Set Amount
Enter an amount for each period included in the calculation. Select Set Amount from the calculation methods list, enter the amount, and indicate the periods to include in the calculation. To include beginning balance amounts in the budget calculation, choose the option to include beginning balances.
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All of the calculation methods discussed earlier for the Budget Maintenance window can be used in the Single Account Budget Maintenance window. Only the budget amounts for the single account are deleted, not the whole budget, if Delete is clicked in this window.
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Combining Budgets
Use the Combine Budgets window to combine existing budgets into one budget. To open this window, click the Financial series button, and then click Budgets on the Cards content pane. Select a budget, and click Open, using Microsoft Dynamics GP, and then click Combine Budgets on the Budget Maintenance window.
Use this window to combine multiple budgets into a single master budget, one budget at a time. The master budget can be a new budget used to combine existing budgets, or you can combine two existing budgets together using an existing budget as the master budget. Once budgets are combined into a single budget, the budgets can be adjusted using budget transactions or other budget modification methods.
HINT: Use a new empty budget to combine multiple budgets and keep all of the original budget records.
Budget ID's
Designate a Master Budget ID and a Combine with Budget ID in the Combine Budgets window. The Master Budget ID specified contains both budgets after it is combined.
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Challenge Yourself!
Create the new budget for 2017 by using the Budget Wizard for Excel.
Step by Step
1. Create the new Budget for 2017 by using the Budget Wizard for Excel. (Cards > Financial > Budgets). 2. Select the New button and then select using Budget Wizard for Excel. This opens a wizard to prompt for answers to questions to create the required budget. 3. In the Welcome to the Budget Wizard for Excel window, click Next 4. In the New Budget Information window enter the Budget ID of BUDGET2017, enter a description of "Budget for the Year 2017", accept Fiscal Year in the Select how to base this budget field and select 2017 as the date range for this budget. Once the information is entered click Next. 5. In the Budget Calculation Method window select Blank Budget and then click Next. 6. In the Actual Amounts Selection window do not pull in any amounts. Do not select any years; click Next to continue. 7. In the Account Types window select the box next to Profit and Loss Accounts; click Next.
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Challenge Yourself!
1. Open the budget in Excel that was created in the previous lab and enter some budget figures in the Period 1 column. 2. Be sure to enter an amount for account 000-4110-01 so amounts can be verified later. Remember that budget amounts for accounts with a credit balance must be entered with a negative sign. 3. Save the budget and import the budget back into Microsoft Dynamics GP.
HINT: To view the figures entered on the budget, click Inquiry > Financial > Budget vs. Actual. Enter account number 000-4110-01 and BUDGET2017. The figures entered for this account will be visible in the inquiry window.
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Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
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A template of typical transactions can be created in the Quick Journal Setup window. When transactions are entered in the Quick Journal Entry window, only the transaction amounts need to be entered. Quick journals are most effective when the accounts remain constant but the amounts vary. Entries can be made more quickly than in the Transaction Entry window because all the necessary accounts are already set up in the quick journal and only the transaction amounts for each account need to be entered. For example, if a company uses an outside payroll service, the same information needs to be added, such as tax withholdings, each pay period. In the Quick Journal Setup window, a quick journal can be set up that includes all the accounts required to enter payroll information. Instead of reentering accounts each pay period in the Transaction Entry window, enter only the amounts for the selected accounts.
HINT: It is not required to enter amounts for all accounts in the Quick Journal Entry window; accounts can have zero balances and the transactions are still posted.
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For break down allocations (for example, the actual distribution accounts and amounts, rather than just the allocation account) to be printed on the Quick Journal Edit List and Quick Journal Posting Journal, select the Breakdown Allocation check box.
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Challenge Yourself!
Set up the Quick Journal using the following information: Field Journal ID Source Document Offset Account Accounts: Value PAYROLL GJ 000-1190-00 Cash Suspense Account 000-5100-00 Salaries and Wages 000-5155-00 Employee Benefits* 000-2150-00 Taxable Benefits Payable 000-2161-00 IL State Withholding Payable 000-2170-00 Federal Withholding Payable 000-2200-00 Payroll Deductions Payable * Add this posting account.
NOTE: A cash suspense account is used in this lab so that if Bank Reconciliation is being used, an entry can be recorded there to update your checkbooks successfully.
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4. Click Save to save the account. 5. Open the Quick Journal Setup window (Microsoft Dynamics GP > Tools > Setup > Financial > Quick Journal). 6. Enter the following information in the appropriate fields: Field Journal ID Description Source Document Reference Allow Override Offset Account Break Down Allocation Accounts Value PAYROLL Bi-monthly Payroll GJ Record bi-monthly Payroll (Do not select) 000-1190-00 Cash Suspense Account (Do not select) 000-5100-00 Salaries and Wages 000-5155-00 Employee Benefits 000-2150-00 Taxable Benefits Payable
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Transaction matching is the process of linking related transaction distributions from different journal entries. For example, a set of transactions can be linked that are associated with a project.
Options
Select the Require Links to Balance option for the debit and credit amounts for all links to be equal before the link may be saved. Select the Link to One Account option for all links to reference only one account when they are created. Select the Allow Deletion of Links option to be able to delete links once they are created. If a Deletion Password is entered, it must be entered to delete a link.
Deletion Password
Click the Deletion Password button to open the Transaction Matching Password Setup window where a password can be used to restrict the users that might delete links. Click OK to close the window and return to the setup window.
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As transactions used to enter historical information are posted to the previous year, beginning balances for each account are calculated. It is not necessary to enter additional transactions to record beginning balances.
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As transactions used to enter historical information are posted to the previous year and open year, beginning balances for each account are calculated. It is not necessary to enter additional transactions to record beginning balances.
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Summary
Some key points to remember from this chapter include: General Ledger Setup is used to enter defaults and make choices about how General Ledger will look. Account history and transaction history can be kept for accounts. Pre-defined categories exist, but can be modified if necessary. Posting Accounts are assigned to account categories, which determine where they will appear on Quick Financials. Unit accounts are used to track non-financial or statistical information, such as employee count or square footage by department. Variable allocation accounts are used to allocate expenses down to a department level based on other breakdown account balances. Using unit accounts as the breakdown accounts allows the allocation of expenses (such as rent) based on square footage within a department. Fixed allocation accounts allow distributions to be split between multiple distribution accounts based on percentages entered. Mass Modify allows quicker, more efficient functionality when copying, moving, or modifying accounts. Budgets created in Microsoft Dynamics GP or imported from Excel can be set up and modified. Beginning balances entry requires some analysis of what history is needed for previous years.
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Solutions
Test Your Knowledge
1. What is the maximum number of open years allowed in General Ledger? ()0 ()1 ()2 () Unlimited 2. What is the maximum account length allowed for a posting account? ( ) 10 ( ) 20 ( ) 55 () 66 3. What is the maximum allowable number of segments for posting accounts in Microsoft Dynamics GP? () 10 ( ) 20 ( ) 55 ( ) 66 4. Which of the following account types can be designated as breakdown accounts for variable allocation accounts? ( ) Budgets () Posting () Unit ( ) Fixed Allocation 5. Categorize the best ways to define the retained earnings account with the following types of businesses: c 1. Sole Proprietorship a 2. Partnership b 3. Corporation a. Fixed Allocation account b. Divisional retained earnings c. Single posting account
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