Unboxing D365 for Finance and Operations – General ledger parameters

Fields (General)

Description

Check for voucher used

Select how to handle duplicate voucher numbers in journals.
Note: You must select Accept duplicates to be able to use different transaction dates for the same voucher number in the Date field on journal lines.

Check continuous numbers

Select this check box to verify that the number sequences that generate vouchers in the ledger are continuous.

Interrupt in case of error account

Select this check box to interrupt updates to automatic transactions with a message when the error account is used in the posting process.

Maximum penny difference

Enter the maximum rounding for a voucher for amounts in the accounting currency. If the penny difference is equal to or less than the penny difference that is specified in this field, the difference is posted to the penny difference ledger account that is specified in the Accounts for automatic transactions form.

Maximum penny-rounding in the reporting currency

Enter the maximum rounding for a voucher for amounts in the reporting currency.

Allow multiple transactions within one voucher

Select this option to allow multiple vendor, customer, fixed asset, bank or project transactions to be entered within a single voucher. Microsoft does not recommend using this option because of the accounting impact to various processes and reporting.

Fields (Correction)

Description

Prior-year correction

Select this option to allow posting advanced ledger entries in the current fiscal year but as a carryforward entry for budgetary purposes. This allows an entity to segregate current-year budget expenditure from prior-year budget expenditures.

Fields (Journalizing)

Description

Extended ledger journal

Select this check box to run extended journalizing, which prints a report that is sorted by the date and time when the journals were created. The standard journalizing report is sorted by journal number.

Start journalizing report at page one

Select this check box to print the journalizing reports from page one.
Clear this check box to use continuous pagination.

Check journalizing

Select this check box to verify whether periods are journalized before they are put on hold or are closed. The verification is performed in the Ledger calendar form when the Period status field is changed to On hold or Closed.

Fields (Upload Journal)

Description

Upload journal name

 This is used when uploading journals through Data management framework.

Fields (Project)

Description

Allow the financial dimensions to be edited on the advanced ledger entry form

Select this check box to allow the ledger account to be changed in the Advanced ledger entry form.
This control is available only if the Public Sector configuration key is selected.

Fields (Financial dimensions)

Description

Values used for summary account

Select the value to use as the summary account when offsetting subledger journal account entries are created for accounting distributions.

Source document – The financial dimension values from the Financial dimensions tab on the header of the source document form are displayed as the offsetting subledger journal account entries.

Accounting distributions – The offsetting subledger journal account entries are created based on the financial dimension values on the accounting distribution for which the offsetting subledger journal account entry is created.

Fields (Transaction reversal)

Description

Correction

If this check box is selected for transaction reversals, a debit transaction is reversed by adding a minus debit transaction, and a credit transaction is reversed by adding a minus credit transaction. When you reverse a customer or vendor transaction by using a correction, the connected ledger transactions are also reversed by using corrections.

Fields (Accounting rules to use)

Description

Use posting definitions

Select this check box to use posting definitions instead of posting profiles and to enable the Commitment accounting options.

If you select this check box, you cannot create prepayments for purchase orders.

Note
When you select this check box, all posting definitions become active. Every transaction type that is associated with a posting definition then uses that posting definition to post to the general ledger. For example, if you associate a posting definition with the Vendor invoice transaction type, all vendor invoices use posting definitions.

Fields (Commitment Accounting)

Description

Enable budget appropriation

Select this check box to use posting definitions to record budget appropriations in the general ledger for budget register entries. In the Budget parameters form, you must select a budget journal name for the budget appropriation before you can select this check box.

Budget appropriations represent budget amounts on the balance sheet. They are used to record the estimated revenues and the impact on fund balances in the general ledger for financial reporting. As budget register entries are posted, a general ledger posting must also be generated, which affects the budget appropriations and budgetary fund balance accounts. By using posting definitions with budget register entries, budgets are also recorded in the ledger.

Enable encumbrance process

Select this check box to create encumbrances, which record entries in the general ledger for committed or obligated purchases.

Note
When this check box is selected, you must use posting definitions for committed or obligated purchases.

Enable pre-encumbrance process

Select this check box to create both pre-encumbrances and encumbrances. Pre-encumbrances reserve funds for planned expenditures.

Note
When this check box is selected, you must use posting definitions for pre-encumbered purchase requisitions.

General budget reservations

Select this check box to record general budget reservations, purchase requisitions, and purchase orders in the ledger.

Fields (Fiscal year close)

Description

Delete close-of-year transactions during transfer

Select this check box to delete opening transactions and system-generated closing transactions that exist for the year to be closed when the transfer is processed again.

Create closing transactions during transfer

Select this check box to create closing transactions when the opening transactions job is run.

Set fiscal year status to closed

Select this check box to display a status of Year closed for all periods for the fiscal year that is being closed.

Voucher number must be filled in

Select this check box if a voucher number must be entered when opening transactions are created for a new fiscal year.

Use fund dimension for year-end transactions

Select this check box if fund dimension will be used for year close process. This is applicable for Public sector accounting.

Use fund dimension to carry forward transactions

Select this check box if fund dimension will be used to carryforward transactions for year close process. This is applicable for Public sector accounting.

Fields (General)

Description

Item sales tax group

Select a default item sales tax group that is used when journal lines are created.

Calculation date type

Select a calculation date type, which determines the sales tax rates to use if you have set up different rates for different dates:

Invoice date – This is the default value. Sales tax is calculated by using the sales tax percentage that is valid on the invoice document date or the date when the invoice is posted. If the Use document date for vendor invoices check box is selected in the Accounts payable parameters form, the invoice document date is used. If that check box is cleared, the date when the invoice is posted is used.

This date is equal to the date in the Posting date field in the Vendor invoice form.

Delivery date – Sales tax is calculated by using the sales tax percentage that is valid on the delivery date. For invoice lines that are not associated with a purchase order, sales tax is calculated by using the sales tax percentage that is valid on the invoice document date or the date when the invoice is posted. If the Use document date for vendor invoices check box is selected in the Accounts payable parameters form, the invoice document date is used. If that check box is cleared, the date when the invoice is posted is used.

Document date – Sales tax is calculated by using the sales tax percentage that is valid on the date when you created the sales order.

This date is equal to the date in the Invoice date field in the Vendor invoice form.

Legal entity for intercompany tax posting

Select whether to post intercompany tax amounts to the legal entity accounts where the expense or revenue amounts are being recorded or where the payable or receivable amounts are being recorded. Select Destination to post the sales tax amounts for intercompany transactions to the legal entity where the expense or revenue is being distributed. Select this option if your organization uses U.S. sales and use tax. Select Source to post the sales tax amounts for intercompany transactions to the legal entity where the payable to the vendor, the receivable to the customer or bank account is recorded.

Calculation method

Select whether sales taxes on invoices are calculated for each line or for all lines.

If the marginal base of any sales tax code is based on either a line or a unit on the Calculation Fast tab of the Sales tax codes form, you must select Line in this field.

Amounts include sales tax

Select this check box to enter gross amounts in journals. Gross amounts include sales tax.

Apply sales taxation rules

Select this check box if the legal entity follows the sales tax and use tax rules of the United States.
According to these rules, sales tax on a purchase is posted as an expense to the ledger account to which the purchase itself is debited. This ledger account is indicated on the invoice or journal line.

Note
If this check box is cleared, sales taxes that cannot be partially or fully deducted in the tax calculation can be posted to a use tax ledger account that you set up in the Ledger posting groups form.

Conditional sales tax

Select this check box if sales tax should not be reported and paid before the invoice is settled.

Check sales tax groups

Select the notification to receive if the sales tax group has errors.
None – No notification is given.
Warning – A warning message is displayed, but the posting process continues.
Error – An error message is displayed and the posting process stops.

Tax direction requirement

Select this check box to require that a tax direction be defined for a ledger account before tax-related transactions can be posted to that account.

Validate tax code

Select this check box to validate the sales tax code that is assigned to the ledger account when you post a document.

Auto sales tax search

Select this check box to allow sales tax groups to be automatically assigned to customer address records

Fields (Cash discount)

Description

Reverse sales tax on cash discount

Select this check box if sales tax should be reversed when a cash discount is granted.

This selection determines the default value for new sales tax groups, but you can change the setting on the sales tax group. If you selected the Cash discount is applied in the invoice check box, this field is not available.

Deduct cash discount before sales tax calculation

Select this check box to never calculate sales tax on cash discount amounts.

Fields (Customer cash discount)

Description

Cash discount is calculated on amount including sales tax

Select this check box if the cash discount for customers should be calculated based on the total invoice amount, which includes sales tax.

Mandatory item tax groups

Select this check box to require that item tax groups be specified on free text invoices.

Fields (Vendor cash discount)

Description

Cash discount is calculated on amount including sales tax

Select this check box if the cash discount for vendors should be calculated based on the total invoice amount, which includes sales tax.

Fields (Payment)

Description

Sales tax on overpayment or underpayment

Select this check box to calculate sales tax on overpayments or underpayments.

Fields (Invoice)

Description

Sales tax amount per invoice line

Select this check box to update the total calculated sales tax amount on the invoice journal. When this check box is cleared, no sales tax amount is updated.

Fields (Special report)

Description

Include corrections

Select this check box to include sales tax corrections in the sales tax payment periodic job and report.

A sales tax report that includes corrections from previous periods is not marked as a correction report.

If you select this check box, the Sales tax payment version field is not available in the Sales tax payment form.

If this check box is cleared, you must report corrections in a separate sales tax report.