Logo
programming4us
programming4us
programming4us
programming4us
Home
programming4us
XP
programming4us
Windows Vista
programming4us
Windows 7
programming4us
Windows Azure
programming4us
Windows Server
programming4us
Windows Phone
 
Windows Server

Microsoft Dynamics GP 2010 : Preventing Errors in Dynamics GP - Ensuring proper year-end closing by checking Posting Types

- Windows 10 Product Activation Keys Free 2019
- How to active Windows 8 without product key
- Malwarebytes Premium 3.7.1 Serial Keys (LifeTime) 2019
1/24/2013 6:24:54 PM

When setting up accounts in the Chart of Accounts, users are required to select a posting type of either Balance Sheet or Profit and Loss. These selections correspond to their respective financial statements, the Balance Sheet and the Profit and Loss statement, also known as the Income Statement. Asset, Liability, and Equity accounts should have a posting type of Balance Sheet. Revenue and Expense accounts need the Profit and Loss Posting Type. This is important because the Posting Type controls the behavior of year-end closing for these accounts.

The year-end closing routine in Dynamics GP zeros out the accounts with a Posting Type of Profit and Loss and updates the selected Retained Earnings account. This process resets the Profit and Loss accounts to prepare for a new year and uses the ending balance in Balance Sheet accounts to create the beginning balance in the new year.

If accounts are incorrectly set up as Profit and Loss accounts their year-end balance will be erroneously cleared to Retained Earnings. Similarly, accounts incorrectly set up as Balance Sheet accounts will not get cleared to Retained Earnings to reflect prior year's net income. In short, if the Posting Type is not correct during year-end closing, companies end up with a mess that can be difficult to fix. Correcting entries can possibly be made if the number of accounts is very small but even that can be time consuming and difficult to get right. There is no way to roll back a year-end closing without reverting to a pre-closing backup or an expensive consulting engagement with Microsoft.

Because of this, validating that the Posting Type is set correctly is an important step prior to closing the year. There are two typical processes to validate Posting Types, using a SmartList to view exceptions and using a report to review all accounts. In this recipe, we will cook up both options.

Getting ready

The two main options for validating Posting Types are an exception based SmartList and a built-in Dynamics GP report. Many firms use a standard, generalized numbering system for their chart of accounts based on the first digit of the natural account. When a schema like this is followed it makes it possible to double-check that accounts have the correct posting types. A typical scenario uses accounts starting with one, two, or three as balance sheet accounts representing assets, liabilities, and equity respectively. Those starting with four or higher are used for the profit and loss statement.

The benefit of this type of setup is that users can create a SmartList that only shows the exceptions. This makes it very easy to find and correct errors. If there is no pattern or identifier designed into the account structure, a report built into Dynamics GP can still be used to review account Posting Types.

Once incorrect posting types have been identified they can be corrected using the Account selection on the Financial Area Page under Cards.

For our example, we use the sample company which is set up with the last Balance Sheet account as 3999 and the first Profit and Loss account as 4000.

How to do it...

To review Account Posting Types with a SmartList:

  1. 1. Click on the SmartList icon to open the SmartList window.

  2. 2. Select the Accounts SmartList under the Financial section.

  3. 3. Click on the Search button.

  4. 4. For Search Definition 1 set the column name to Account Number, Filter field to is less than, and Value to 000-4000-00.

  5. 5. For Search Definition 2 set the column name equal to Posting Type, Filter field to is equal to, and Value to Profit and Loss:

  1. 6. Click on OK to display low-numbered accounts that are improperly listed as Profit and Loss accounts.

  2. 7. Press the Print button to print this report to make the appropriate corrections in the Account Maintenance window later.

  3. 8. Click on Favorites and save this SmartList as a Favorite named YE BS Errors.

  4. 9. Click on Search again.

  5. 10. For Search Definition 1 change the Filter field setting to is greater than and Value to 999-3999-99:

  6. 11. For Search Definition 2 change the Value field setting to Balance Sheet

  1. 12. Click on OK to display high-numbered accounts that are improperly listed as Balance Sheet accounts.

  2. 13. Click on the Print button to print this report and allow a user to make the appropriate corrections in the Account Maintenance window later.

  3. 14. Click on Favorites and save this SmartList as a Favorite named YE PL Errors.

If a firm's chart of accounts is not set up in a way that makes identifying exceptions possible, a user still needs to print the chart of accounts and review the account Posting Types individually prior to year end.

To print and review the chart:

  1. 1. Select Financial from the Navigation Pane. Select Accounts from the Financial Area Page under the Reports and Financial sections.

  2. 2. In the Report field type Posting. Click on the New button.

  3. 3. In the Option field select Posting Type:

  1. 4. Click on OK to finish.

  2. 5. Select the Print button and review the report for Posting Type corrections:

How it works...

Reviewing Posting Types prior to running year-end close is a simple solution to preventing an embarrassing situation. Firms that are able to use exception based reporting get a fast, easy validation that Posting Types are correct. Even when exception reporting is not available, reviewing Posting Types is an important procedure to prevent a year-end disaster.

Other -----------------
- Microsoft Dynamics GP 2010 : Preventing Errors in Dynamics GP - Preventing account selection errors with Chart Segment names
- Monitoring Windows Small Business Server 2011 : Using Windows SBS Console Monitoring (part 3) - Creating and Viewing Reports
- Monitoring Windows Small Business Server 2011 : Using Windows SBS Console Monitoring (part 2) - Using Notification Settings
- Monitoring Windows Small Business Server 2011 : Using Windows SBS Console Monitoring (part 1) - Using the Network Essentials Summary
- System Center Configuration Manager 2007 : Operating System Deployment - Boot Images
- System Center Configuration Manager 2007 : Operating System Deployment - Site Systems
- BizTalk Server 2006 : Pipeline Component Best Practices and Examples - The Databased Disassembler
- BizTalk Server 2006 : Pipeline Component Best Practices and Examples - Using PGP (part 2) - PGP Decode Component
- BizTalk Server 2006 : Pipeline Component Best Practices and Examples - Using PGP (part 1) - PGP Encode Component
- Microsoft Dynamics CRM 4.0 : Using Microsoft Dynamics CRM with Microsoft SharePoint
 
 
Top 10
- Microsoft Visio 2013 : Adding Structure to Your Diagrams - Finding containers and lists in Visio (part 2) - Wireframes,Legends
- Microsoft Visio 2013 : Adding Structure to Your Diagrams - Finding containers and lists in Visio (part 1) - Swimlanes
- Microsoft Visio 2013 : Adding Structure to Your Diagrams - Formatting and sizing lists
- Microsoft Visio 2013 : Adding Structure to Your Diagrams - Adding shapes to lists
- Microsoft Visio 2013 : Adding Structure to Your Diagrams - Sizing containers
- Microsoft Access 2010 : Control Properties and Why to Use Them (part 3) - The Other Properties of a Control
- Microsoft Access 2010 : Control Properties and Why to Use Them (part 2) - The Data Properties of a Control
- Microsoft Access 2010 : Control Properties and Why to Use Them (part 1) - The Format Properties of a Control
- Microsoft Access 2010 : Form Properties and Why Should You Use Them - Working with the Properties Window
- Microsoft Visio 2013 : Using the Organization Chart Wizard with new data
Popular tags
Microsoft Access Microsoft Excel Microsoft OneNote Microsoft PowerPoint Microsoft Project Microsoft Visio Microsoft Word Active Directory Biztalk Exchange Server Microsoft LynC Server Microsoft Dynamic Sharepoint Sql Server Windows Server 2008 Windows Server 2012 Windows 7 Windows 8 windows Phone 7 windows Phone 8
programming4us programming4us
Celebrity Style, Fashion Trends, Beauty and Makeup Tips.
 
programming4us
Windows Vista
programming4us
Windows 7
programming4us
Windows Azure
programming4us
Windows Server