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How to post Adjusting Y/E Entry to Retained Earnings account

Microsoft Dynamics AX Forum

JordanH asked a question on 15 Sep 2018 7:57 PM

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Hi all,

I am doing our year end and our accountants have asked to post an entry that adjusts our Retained Earnings - Previous Year account to adjust for an error. However this account is set to "Do not allow manual entry". If I could I would post through General Ledger journal and everything balances, but this setting won't let me.

I know that it is possible when I view posted transactions in that account there are several entries under the General Ledger voucher. Because it is a retained earnings account how can I post an adjustment to it? Do I need to set up a posting profile or is there a module for year end adjustments that I am not aware of? I do not want to toggle "Do not allow manual entry" on and off, I want to perform this adjustment through the system not around it, I am just not sure how.

The entries in the account under the GEN voucher are Operating posting types, not closing/opening so I know that it can be done.

Any advice or links to resources is greatly appreciated it, everything I have found online tries to say to toggle that option on and off.

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JordanH responded on 15 Sep 2018 8:09 PM

When I look into it more it appears the posts that are in the account done through General Journal do not have a "Transaction Type" associated with them.

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JordanH responded on 15 Sep 2018 10:09 PM

So update to this, I have posted it through the Closing Period Adjustments form, and it shows up just fine. However when I print my financials this adjustment does not show up. I look in the accounts and this adjustment went through correctly.

Is there a reason the Financial Statements won't post this? Is this because it was a closing entry and the financial statement is only pulling Operating types? I need my financial statements to match but this one transaction doesn't want to pull onto the financials.

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Suggested Answer

Hi,

I would have used the period closing adjustment form as well.

Once the posting is made you have to run the year end closing process once again. This process recreates your opening balances for the next year and adjusts your retained earnings account.

Best regards,

Ludwig

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JordanH responded on 17 Sep 2018 10:57 AM

Sorry for late response, I took Sunday off.

Is this normal for the adjustments made on the Period Closing Adjustment form to not pull through to financial statements until the year end process is complete?

When you say "run the year end closing process once again", what exactly do you mean. Do you mean run GL > Periodic > Fiscal year close > Opening Transactions module?

I have not done a year end in AX yet and want to ensure this is done correctly the first time.

And just to make sure we are on same page, I used GL > Periodic > Fiscal Year Close > Closing period adjustments and created a new closing sheet to make a transfer. This transfer is showing up in the account when I view GL > Main Accounts > Posted, but when I print GL > Reports > Financial Statement (Traditional) this adjustment/transfer is NOT flowing through to these statements yet. If I run  GL > Periodic > Fiscal year close > Opening Transactions will this transfer/adjustment show up on these financial statements?

Thank you again for your help.

Jordan

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JordanH responded on 17 Sep 2018 11:10 AM

As a quick side-note. I would test this in our test environment but it has not been up and running for about a month now. The IT guys tell me it should be back up this week.

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JordanH responded on 17 Sep 2018 2:02 PM

Update, our test environment is back up and running. When I test this, this adjustment still does NOT show up on our financial statements and I am really confused as to why. I see the adjustment in the account postings but it will not pull onto our financials. The date is correct, the only difference is that the adjustment is of "type closing".

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Verified Answer

Hi,

Here are some comments that might help:

JordanH
Is this normal for the adjustments made on the Period Closing Adjustment form to not pull through to financial statements until the year end process is complete?

If you run the trial balance then there is a parameter that allows including/excluding closing transactions. By default it is disabled. Please try to enable it and run the trial balance again.

JordanH
When you say "run the year end closing process once again", what exactly do you mean. Do you mean run GL > Periodic > Fiscal year close > Opening Transactions module?

Yes

JordanH
I have not done a year end in AX yet and want to ensure this is done correctly the first time.

You can run this process as often as you like provided that you do not set your period status to closed.

JordanH
And just to make sure we are on same page, I used GL > Periodic > Fiscal Year Close > Closing period adjustments and created a new closing sheet to make a transfer. This transfer is showing up in the account when I view GL > Main Accounts > Posted, but when I print GL > Reports > Financial Statement (Traditional) this adjustment/transfer is NOT flowing through to these statements yet. If I run  GL > Periodic > Fiscal year close > Opening Transactions will this transfer/adjustment show up on these financial statements?

Can you verify that the parameters 'include opening/closing/operating' are all active in your traditional financial report lines? You can find those parameters in the transactions tab in the footer section.

Best regards,

Ludwig

Reply
JordanH responded on 18 Sep 2018 1:56 PM

This was the issue, thank you very much for the help. I did not know it was set to this by default.

JordanH

Reply
Verified Answer

Hi,

Here are some comments that might help:

JordanH
Is this normal for the adjustments made on the Period Closing Adjustment form to not pull through to financial statements until the year end process is complete?

If you run the trial balance then there is a parameter that allows including/excluding closing transactions. By default it is disabled. Please try to enable it and run the trial balance again.

JordanH
When you say "run the year end closing process once again", what exactly do you mean. Do you mean run GL > Periodic > Fiscal year close > Opening Transactions module?

Yes

JordanH
I have not done a year end in AX yet and want to ensure this is done correctly the first time.

You can run this process as often as you like provided that you do not set your period status to closed.

JordanH
And just to make sure we are on same page, I used GL > Periodic > Fiscal Year Close > Closing period adjustments and created a new closing sheet to make a transfer. This transfer is showing up in the account when I view GL > Main Accounts > Posted, but when I print GL > Reports > Financial Statement (Traditional) this adjustment/transfer is NOT flowing through to these statements yet. If I run  GL > Periodic > Fiscal year close > Opening Transactions will this transfer/adjustment show up on these financial statements?

Can you verify that the parameters 'include opening/closing/operating' are all active in your traditional financial report lines? You can find those parameters in the transactions tab in the footer section.

Best regards,

Ludwig

Reply
Suggested Answer

Hi,

I would have used the period closing adjustment form as well.

Once the posting is made you have to run the year end closing process once again. This process recreates your opening balances for the next year and adjusts your retained earnings account.

Best regards,

Ludwig

Reply

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