1. 1 Microsoft ® Business Solutions–Axapta ® Axapta Training – General Ledger Phase 1

2. 2 General Journals In Axapta all manual postings are entered into the system through journals. A journal is a kind of worksheet, where the entries are not posted immediately, but can be reviewed and changed until the complete journal is finally posted. You use the journals in Axapta to review and verify the entered transactions before posting them into the ledger module. Remember to do this also when importing data from external ledger systems into Axapta, as it is a good opportunity to make sure that all valid fields contain a value and all restrictions for the transaction are fulfilled. General ledger > Journals > General Journal

3. 3 Exercise Create a new general journal using Day1 journal name. Create the following journal: 12030 Acquisition plant equipment this year 1,500 18130 Petty Cash1,500 Journal description : Fixed asset acquisition Currency : DKK Validate and post the journal and then print the journal

4. 4 Chart of accounts The chart of accounts is the core of the Axapta application. All posting information from other modules and all transactions end up here. The chart of accounts includes all the company’s accounts and contains a predefined report layout used for financial reports. General ledger → Chart of accounts

5. 5 Chart of accounts General setting of an account Account number: This field is mandatory. It can also contain alphanumeric values and therefore it can also be used for structuring the chart of accounts in further detail. Account type:Define the type of the account in the Account type field. Profit & Loss, Revenue and Cost are used to record revenue and expenses. Revenue and cost account have the same function as Profit&Loss account Balance, Asset and Liability are used to record assets and liabilities. Assets and Liabilities have the same function as Balance. Header allows you to enter the name of an account as a header Empty header is used to create a space Page header creates a new page immediateley before the designated account and use the name of the account as a header Total is used for adding account intervals

6. 6 Chart of accounts Locked: If an account is marked as locked, only automatic transactions can be posted on this account. Debit/Credit: to determine the account debit/credit requirement Closed: the account is closed for posting Exchange adjustment : the account is included in GL exchange adjustment Close : when opening transactions is run, to which account type it will go to Allocation : to determine that the account has allocation Related accounts : to determine the accounts which is related to the account Sales tax : to determine default sales tax Currency : to determine default currency and validatin Financial statement : to determine account format in financial statement Dimension : to determine dimension setting for the account

7. 7 Exercise Create a new account 12106, name it Total Net Fixed Asset. The balance setup is 1/1/2002 1. Account type = Total = 12020 to 12105. See whether it sums up all these balances. 2. Change the account type to Balance. DB/CR Proposal = Credit, create a general journal and validate it 3. DB/CR Requirement = Credit, create a general journal and put the journal amount in Debit and validate the journal 4. Activate the closed, validate the journal again

8. 8 Exercise 1.What should be setup if the currency is always DKK?. To test your setup, create a general journal and validate 2.Validate department dimension Use List, where the list contains Prod, Admin and Proj. Create a new journal and put dimension = Sales. What does the infolog say? Use Table, department = Admin. Create a new journal and dimension = Prod. What does the infolog say?.

9. 9 Setup Dimensions The purpose of dimensions is to identify and to categorize ledger transactions. You set up the dimensions on the Dimensions form on the General tab. When you associate dimensions with entries you can perform many different types of analyses for a single account, e.g. revenues generated by a specific department or activity. The specified dimensions are independent of each other, and can be used in any combination. Basic → Dimensions

10. 10 Exercise Create the following dimension: Department/Business unit : Accounting Company : Serang Division: Operation Create the following general journal and post with the above dimensions attached in the journal lines. Posting date 8/5/2005. 12030Acquisition plant equipment this year 1,500 18130 Petty Cash 1,500 Check the balance in the chart of accounts (Chart of accounts -> Balance -> Balance by dimensions)

11. 11 Periods §Allows you to define your own fiscal periods and to modify fiscal periods in existing company accounts. The periods form contains fields for the start and end dates for the accounting period, for status, and for comments. The status has three possible settings: Stopped, Open, or Closed. This status setting is used in daily journals, and only allows posting in open fiscal periods. §On the Module status tab, you can define the rules for updating in the modules in Axapta §A Closed accounting period cannot be re-opened §Create new fiscal year: Define a new fiscal year §Divide period : Divide existing periods §Create closing period : Create a period with Closed status §Delete period : Delete an existing period §Delete fiscal year : Delete an existing fiscal year §Recalculate period balances : Recalculate the balances in the selected periods General ledger → Setup → Periods → Periods

12. 12 Periods All periods have one of the following status: Normal: The period is open and transactions can be posted. Stopped: The period is not open, and a warning message is displayed if anybody tries to post transactions into this period. The period can be changed back to normal again. Closed: The period is closed for transactions, except for transactions from the year-end closing routine. Periods set to Closed cannot be reopened. Therefore, you should only close a period when the year-end closing procedure is finished, and the result has been approved.

13. 13 Exercise Create a new fiscal year (2006) In January 2006, divide into the following periods: Period 1 : 1/1/2006 – 1/15/2006 Period 2 : 1/16/2006 – 1/31/2006 Set module status to certain user group and try to validate/post Try to post to a stopped period

14. 14 Journal names §The setup is used as a template for all journals created with the name given in this window. §That means that all of the journals will use the voucher series, offset account, and other information that is setup up here. Create and manage for the following journal types, such as Daily, Periodic, Vendor payment, Customer payment, Post fixed asset etc §Journal control button to set up validations of the options that are available for the journal General ledger → Setup → Journals → Journal names

15. 15 Exercise 1.Create a new journal name called GL Jur (Jurnal Umum) with account type = Daily. Offset account 18130. Voucher Ledger_3 2.Activate the approval and create a new general journal 12030 Acquisition equiptment this year100 18130Petty Cash100 3.Activate fixed offset account and create new journal again 4.Try the posting detail level to Summary. Make 2 jurnal name, JurDetail (Detail level = Detail, New voucher = In connection with balance), JurSummary (Detail level = Summary, New voucher = One voucher only) Make 3 journal lines : 11005500 11010500 11005200 11010200 11010100 11005100 5.Try delete after posting 6.Setup the journal control so that this journal can only use the following accounts only 11005 and 11010. Create a new journal with account 12020 and see the infolog

16. 16 Setup Transaction Texts §Define the transaction texts for all the automatically created entries into the ledger module on the General tab, in the menu folder Texts. Automatic entries are ledger entries created out of transactions of other modules within the flow. An example of this is when creating an invoice out of a sales order, and ledger transactions are created, and these transactions have the text “Sales invoice %2” (%2 indicates the invoice number). Basic → Setup → Transaction text

17. 17 Exercise Create new transaction text Identification : rem Search name: rem Transaction text: Reimbursement Create a new general journal and try the transaction text

18. 18 Allocations You can setup allocation in the Chart of account so that you can execute any allocation in connection with posting from other parts of the application, and when posting from the journals. § Activate Allocation check box (General ledger > Chart of accounts > General tab) § Setup allocation terms in % (General ledger > Chart of accounts > Setup > Allocation terms)

19. 19 Exercise Whenever you post Advertising expense (60120), it will automatically allocated 10% of the amount to Selling expense (60110) Setup allocation terms for 60120 for this case Create the following journal 60120 Advertising expense1000 18130 Petty cash1000 Inquiry the voucher (Inquiry > Voucher)

20. 20 Periodic journal You can create periodic transaction such as salary payment journal, rent expense journal using the periodic journal General ledger > Periodic > Periodic journals General ledger > Journals > General journal > Period journal > Retrieve Journal

21. 21 Exercise You have just paid a rent expense for 1 year on 1 January 2005. On the last day of every month you record the following rent expense journal 11007 Prepaid rent expense1,000 60550 Rent & water expense1,000 §Create periodic journal setup §Create a general journal by retrieving the period journal setup for 3 months (January till March 2005). To date = 3/31/2005 §Observe your periodic setup §Delete Date in your periodic setup. Create general journal again by entering empty date = 5/31/2005 and To date = 6/30/2005 §Today is 12/31/2005 and the periodic journal is no longer used. So create a new journal again and retrieve the periodic journal by selecting Move in the copy or move journal field

22. 22 Exchange rates Set up currencies and their corresponding exchange rates. This allows you to specify a starting date for a rate, since it is possible to have several rates for the same currency. The posting date determines what rate will be applied. The rates displayed are the currency that is currently highlighted General ledger > Setup > Exchange rates

23. 23 Exercise Based currency is EUR Create MYR currency, with the following exchange rates Before 2/28/05 100 MYR = 25 EUR 2/28/05100 MYR = 24 EUR Create the following general journal on 1/21/2005 and post, check the voucher: 60110Selling expenseMYR 100 18130Petty cashMYR 100 Create the following general journal on 3/2/2005 and post and check the voucher: 60110Selling expense MYR 100 18130Petty cashMYR 100 You have a deal with your vendor that our company pays using fixed exchange rate 100 MYR = 23 EUR. Create the following journal on 2/21/2005 60110Selling expenseMYR 100 18130Petty cashMYR 100

24. 24 Ledger exchange adjustment § When ledger transactions are entered in foreign currencies, they are converted into the default currency using the existing current exchange rates § For balance sheet accounts, for instance, it may be useful to have the balance converted into the default currency at the current exchange rate on a daily basis § You may also wish to convert all transactions in profit & loss accounts over a given period. § Note: accounts must be marked in the field Exchange adjustment in the Chart of accounts General ledger > Periodic > Exchange adjustment

25. 25 Exercise 100 USD = 115.08 EUR on July 1, 2005 100 USD = 120.05 EUR on August 1, 2005 100 USD = 130.00 EUR on September 1, 2005 Create and post the following journal transaction on July 1, 2005: 11005USD 10 11010USD 10 §Run exchange adjustment on August 1, 2005 and check ledger balances §Run exchange adjustment on September 1, 2005 and check ledger balances

26. 26 Financial Statements Creating a financial statement To facilitate the work with the chart of accounts, Axapta includes a series of predefined reports. Financial statements on balance and profit/loss accounts depend on the chart of accounts, and at the same time they may differ from company to company. The report generator for the ledger module makes it possible to define and save customized reports. The layout defined in the chart of accounts can be overruled when creating financial statement reports. General ledger > Setup > Financial Statement rows (names) General ledger > Setup > Financial Statement General ledger > Reports > Transactions > Periodic > Financial statement

27. 27 Financial Statements Create a new financial statement and name it. Define the columns and their content via the Columns button. Give each column a number. Defined Date intervals in the Setup menu folder under the Ledger module. Define the type of calculation, and the column numbers that replace the %1 and %2 of the chosen formula. Go to the Formatting tab and specify column length and width. On the Transactions tab select the appropriate transactions type. When the financial statement has been defined, go to Reports, and select Financial statement to run it and print it either to the screen or on paper.

28. 28 Financial Statement Rows You can use financial statement rows to make alternative reports on the Chart of accounts. General ledger > Setup > Financial statement rows In order to make financial statement rows, you must go through the following procedure: Creating financial statement rows New financial statement rows must have an identification (ID) and a search name. The function of the ID is to connect the financial statement rows to a balance report. You can also copy existing financial statement rows and use the setup from this as a point of departure. Creating lines To add an account, open the Ledger account field and select the account. You can also click the Insert accounts button and select accounts via the Query form. Special reports On the Special reports tab, you define how the individual account should be formatted when printing the balances that the financial statement rows are connected to.

29. 29 Financial Statement Rows Totals When the account type is Total, the button Totals is active, and if you click it you can set up the accounts that are to be included in the totals. If the account already has a defined sum interval from the default Chart of accounts, the sum interval is transferred to the financial statement rows. Sum accounts If a posting account (Profit & Loss or Balance) is active, you can click the Sum accounts button to display the sum accounts that the posting account is part of. Calculation Remember that you can set up calculations on the columns in the financial statement that you connect your financial statement rows to.

30. 30 Exercise §Create COA List report using the financial statement setup, which consists of the following columns 1 Ledger account (Column type = Account number) 2 Account name (Column type = Name) 3 Balance 2002 (Column type = Current) 4 Balance 2003 (Column type = Current) 5 Total 2002&2003 (Column type = Calculation) §Show negative values in parentheses and factor = 2 for next year’s projected COA List

31. 31 Account Statement Allows you to print out Account Statement for one or more accounts. To specify an interval of accounts, click the Select button To print an account Indicate which period and which dimensions you want to print. Be sure that the From and To dates fall within the same accounting year. Indicate whether you want to print the current transactions, operating transactions, or fiscal transactions. Optionally, insert a page break between each account, and reset page numbering so that the printout begins with page 1 for each new account. Indicate how the transactions are to be added in Specification. For a list of options, select the square arrow. Indicate if totals by currency should be included. Indicate if opening transactions should be included in opening balance, and not as transactions. Print sales tax information Select the Sales tax specification check box to print posted sales tax specified by sales tax code for a specific ledger account. Note Select Excl. transactions and Empty periods if you want to print accounts or periods in which there are no transactions. General ledger → Chart of accounts → Account Statement General ledger → Reports → Transactions → Account Statement

32. 32 Exercise Print account statement for 1/1/2003 – 12/31/2003 Try also the following options one by one: New page Reset page Specifications : Posting, day, week, month, quarter, month Dimension Empty periods Without transactions Currency total Opening transactions

33. 33 Ledger budget §While the financial functionality is primarily related to capturing and reporting on historical data (postings), it’s almost always of equal importance that we use such data to plan and control our operations and financial results in the future. One of the key ways in which we accomplish this is via the budgeting function. Axapta contains a robust budgeting functionality, which we will explore in this lesson. §Define budgets in the Ledger module on each account. The budgets defined in the ledger are usually cost controlling budgets. §Budget methods : Period: Same amount in each period Key : Fluctuating based on % General ledger > Setup > Budget model General ledger > Ledger budget

34. 34 Exercise 1.A company has monthly budget per department. Create 2 budget models for department Accounting and IT for year 2006 (Acc2006, IT2006) (General ledger > Setup > Budget model) 2.Make a budget for account = 60630 (Office supplies expense) starting from 1/1/2006 until 12/31/2006. It is estimated that monthly budgeted office supplies expense will be the same throughout the year (budget method = Period), the 2006 budget amount is: (General ledger > Ledger budget) Accounting = EUR 1,500 IT = EUR 2,000.

35. 35 Exercise Your sales bulb budget is fluctuated throughout the year. Based on your previous experiences, you come up with the following budget% allocations For year 2006. You use the previous years average sales EUR 1,000,000 as your 2006 budget base Create a budget based on this scenario using 40110 and budget model Sales2006 and create budget key AvgSales PeriodBudget% 10 18 29 38 47 55 63 7 812 915 109 114

36. 36 Month-end closing Here are some activities that you need to take for month-end closing: §Create backup §Change number sequences (optional) reflecting the new period §Running exchange adjustment §Posting of all unposted transactions for the period (fixed asset, journals, invoices, bank reconciliation etc)

37. 37 Year-end Closing The following list contains the most important actions to be taken when making year-end closing procedures: Backup data Creating a new fiscal year Setting periods to Stopped to control accidental postings into the closing year. Making adjustment entries, using closing sheet or general journal Printing financial statements Transferring opening balances into the new year Resetting number sequences (optional)

38. 38 Year-end closing (cont...) Create the new fiscal year To create the new fiscal year go to the General Ledger, select Setup under Ledger, and double-click on Periods. As soon as you create a new fiscal year you can enter transactions for the year. You do not have to close the previous year before entering the next year’s transactions. Stopping a period From the General Ledger module go to the Setup folder and choose Periods. On the Overview tab click on the Module Status column in the period(s) you wish to stop posting to. The Closing Sheet The closing sheet shows an advanced view of the balances on accounts, and you can perform year-end postings. The postings to the closing sheet will typically take place in the closing period of the fiscal year.

39. 39 Year-end Closing (cont…) Loading Balances into the Worksheet To load balances from a company means that Axapta adds up all of the transactions in each account and transfers the balance into the worksheet. Click the Accounts button in the closing sheet, and then click Load balances from company. This makes a small window appear. If you have already transferred balances into this worksheet and want to delete those and reload balances, select the checkbox Delete existing accounts. If your closing sheet is a new sheet, you do not have to select this checkbox. Transferring Balances into the New Year To transfer balances to the new year, go to the Ledger module, select the Periodic menu folder, and click Opening Transactions. You can transfer balances as often as you want (each time you have modified the previous year). However, you must be aware of the following ledger parameter settings. See the illustration below.

40. 40 Year-end Closing If the field Delete opening transactions when transferring is blank, the previous transfers will not be deleted when time you make a transfer to the opening period in the new fiscal year. Instead, the system transfers the net adjustments compared to the last time you transferred. In this way you will keep the history regarding your transfers. Keep in mind that this also will create many transactions. If the field is checked, the transfer will overwrite the previous opening transactions. Resetting Number Sequences (optional) Resetting number sequences is not required and in some cases not recommended, simply means resetting the range back to the first number you started with. Currently, there are only a couple of numbers sequences that can be reset without problems if done correctly. Normally, a number cannot be used twice, but for the below mentioned sequences, this may be allowed with proper setting of parameters.

41. 41 Closing sheet Create and post an adjustment on 12/31/2002 to a closing period with the following journal. Make sure you have setup the close field in the Chart of accounts 11007, Close = Balance 60550, Close = Result 11007 Prepaid rent expense1,000 60550 Rent & water expense1,000

42. 42 Exercise Change COA balance setup to 1/1/2006 Create the following COA 18120 Balance 20120 Capital 11015 Balance (Prepaid rent) 40110 Result 60110 Result 60550 Result 20160 Capital Create and post the following transactions using general journal: 1/1/06 18120 Bank STB-EUREUR 1000 (Acc type=Bank) 20120 Paid in capital EUR 1000 (Acc type=Ledger) 1/2/06 11015 Prepaid rentEUR 300 (Acc type=Ledger) 18120 Bank STB-EUREUR 300 (Acc type=Bank) 3/10/06 18120 Bank STB-EUREUR 400 (Acc type = Bank) 40110 Sales BulbsEUR 400 (Acc type = Ledger) 6/1/06 60110 Selling expenseEUR 50 (Acc type = Ledger) 18120 Bank STB-EUREUR 50 (Acc type = Bank)

43. 43 Exercise (contd.) Create rent expense adjustment using closing sheet on 12/31/06. EUR 150 has been used for the year. Debit = 60550 (Rent and water expense), Credit = 11015 (Prepaid rent) Run opening transaction and transfer profit/loss to 20160 (net income for the year) How much is the profit/loss amount?

44. 44 Tax Setup The tax system in Axapta is very complex and can deal with more than just setting up and calculating plain taxes. You find the proper taxes for a transaction in Axapta by building groups of items, vendors and customers. When searching for a tax, only the tax codes used in both of the related groups will be found and used for calculating the final tax or duty. The flexibility in Axapta is illustrated in the figure below:

45. 45 Tax Setup Menu path: General Ledger > Setup > Sales Tax > Sales tax codes

46. 46 Tax setup Create new vendor for Tax authorities Setup tax authorities, attach the new vendor Setup tax settlement periods (Monthly, starting from 1/1/2005 till 12/31/2005) Use STD tax posting group Setup sales tax code (PPN10%) and (PPN 5%) Setup sales tax group (PPN) attach PPN10% and PPN5% Setup item tax group (PPN) Create vendor invoice journal amounting to EUR 100,000 using general journal Debit : Ledger account 60630 (Office supplies expense) Credit : Vendor 3000 Attach sales and item tax groups in the journal Before posting, check the sales tax balance

47. 47 Exercise : Tax setup Make new tax code PPN5% In the Sales tax group, Attach PPN10% and PPN5% Create vendor invoice journal amounting to EUR 100,000 using general journal Debit : Ledger account 60630 (Office supplies expense) Credit : Vendor 3000 Attach sales and item tax groups in the journal Before posting, check the sales tax balance

48. 48 THANK YOU

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