Friday, November 18, 2016

AX 2012 | Process Opening Balances Part 1














Upload and process opening balances is one of the most important steps during ERP implementation life cycle. In this post we will illustrate how to process opening balances through dynamics AX. During this article we will discuss the Following:


  • How to replace the summary accounts with temporary accounts in the balance sheet journal.
  • Breakdown and post sub-ledger balances to match the balance sheet.
  • Match sub module reports with balance sheet summary accounts. 

1- First let's check the balance sheet.















2- Next, let's see the break down of the Accounts receivable.














3- Next, let's check the break down of the Inventory.














4- Next, let's check the break down of the fixed assets acquisition, and accumulated depreciation.














5- finally, let's check the break down of the Accounts Payable.





















7- Next, check balance sheet journal ( this post don't discuss how to import the opening balances journal ). as illustrated in the next screenshot i used three general journal



  • First journal contain the balance sheet.
  • Second journal contain the Accounts receivable break down.
  • Third journal contain the Accounts payable break down. ( You can also use AP Invoice Journal instead of general journal).




8- the next screenshot illustrate the balance sheet accounts.
















9- Now, first step to process the opening balance. is to replace the bank accounts with bank sub ledger account.

In our example we will replace account 11020 with ISB-SAR  bank account, of course we need to change the "account type" from "ledger" to "Bank" as illustrated in the next screenshot


















10- Next, Go to GL -> main account -> then create new account which will be used as temporary account during opening balances processing.

In our example we will create account 99995 "AR opening balance account". Now, go back to the balance sheet journal then replace accounts receivable 11030 with 99995 Account.


















11- Next, Go to GL -> main account -> then create new account to be used as temporary account to replace Inventory account (You can use one temp account to replace all summary account).

In our example we will create account 99996 "Inventory opening balance account". Now, go back to the balance sheet journal then replace Inventoey 11040 with 99996 Account.
















12- Next, Go to GL -> main account -> then create new account to be used as temporary account to replace Fixed assets accounts (we will use the same account to replace the FA Cost, and Accumulated Depreciation).

In our example we will create account 99997 "FA opening balance account". now, go back to the balance sheet journal then replace Cars Cost 11070 with 99997  FA opening balance Account.


















13- Then replace Computers Cost account 11080 with 99997 FA opening balance account.















14- Next, Replace Accumulated Depreciation 11090 with 99997 FA opening balance account.















15- Next, Go to GL -> main account -> then create new account to be used as temporary account to replace accounts payable accounts.


In our example i will create account 99998 "AP opening balance account". Now, go back to the balance sheet journal then replace accounts payable account 22010 with 99998 AP opening balance account.

















16- Now we are ready to post the balance sheet journal. Click post.















17- make sure there is no errors.















18- Now, Go to GL -> Common -> Trial Balance. note that all summary accounts (AR, INV, FA, AP) balances was posted to the temporary accounts.















19- Next, Go to the AR opening balance journal then click lines















20- Note that the journal contain the break down of the accounts receivable account per customer. Make sure to enter "AR opening balance account" 99995 in the offset account. then post.


As result of this transaction the system will Debit the AR Summary Account 11030 and Credit the 99995 Account ( 99995 balance will be Zero ).

















21- Go back to the trial balance to check the new balances. note that 99995 closing balance is zero and 11030 Accounts Receivable have balance.















22- Next, we will check, and post the Inventory break down journal. in our example we used the Inventory movement journal.

23- Notice that the journal contain the break down of the inventory account per item. Make sure to enter "INV opening balance account" 99996 in the offset account. 
then post.

As result of this transaction the system will Debit the Inventory Summary Account 11040 and Credit the 99996 Account ( 99996 balance will be Zero ).

















21- Go back to the trial balance check the new balances. notice that 99996 Closing balance is Zero and 11040 Inventory have balance.

















22- Next, we will check, and post the Fixed assets Acquisition cost break down journal.

In our example we used the Fixed asset entries journal.

















23- Note that the journal contain the break down of the Cars, and Computers accounts per Fixed asset. make sure to enter  FA opening balance account" 99997 in the offset account. then post.

As result of this transaction the system will Debit the Cars, and Computers Summary Accounts 11070,11080 and Credit the 99997 Account ( 99997 balance will not be Zero until we post the Accumulated Depreciation journal ).


















24- Go back to the trial balance check the new balances. note that Cars, and Computer accounts have balance.

















26- Next, we will check, and post the Fixed assets accumulated depreciation break down journal. 

In our example we used the Fixed asset entries journal.

















27- Notice that the journal contain the break down of accumulated depreciation account per Fixed asset. make sure to enter "FA opening balance account" 99997 in the offset account. then post.

As result of this transaction the system will Credit the accumulated depreciation summary accounts 11090 and Debit the 99997 Account ( 99997 balance will be Zero ).


















28- Go back to the trial balance check the new balances. note that accumulated depreciation summary account 11090 have balance. And 99997 closing balance is zero.

















29- Finally, we will check, and post the accounts payable break down journal. 

In our example we used General journal.

















30- Note that the journal contain the break down of the accounts payable account per vendor. Make sure to enter "AP opening balance account" 99998 in the offset account. then post.

As result of this transaction the system will Credit the Accounts payable Summary Account 22010 and Debit the 99998 Account ( 99998 balance will be zero ).


















31- Go back to the trial balance check the new balances. note that accounts payable account have balance, and 99998 balance become zero.



32- For more verification, we will print sub module reports and compare it with trial balance.


First, we will print "Customer balance list" report with Accounts receivable summary account. Note that it's totally matched.

















33- Next, we will print "Vendor balance list" report with accounts payable summary account. Note that it's totally matched.

















34- Next we will print "Inventory Value" report with Inventory summary account. Note that it's totally matched.

















35- Next, we will print "Fixed Asset Balances" report with Cars, Computers, and Accumulated Depreciation accounts. Note that it's totally matched.
















That's all for today. see you in part 2.