[How to] Setup Advanced ledger Settlements, Concept and Operations

Dear Dynamics 365 Lovers,

This blog is about [How to] Setup Advanced ledger Settlements, Concept and Operations, and it is a very common requirement for each organization in finance area.

Concept 

Ledger settlements let you match debit and credit transactions in the general ledger, and mark them as settled. In this way, you can make sure that related transactions have been cleared. You can also reverse settlements if they were made by mistake.

This is a periodic task done weekly, monthly, quarterly, depending on the needs of every organization. It is definitely useful to reconcile the debits and the credits of a given account or between the given accounts. It is useful for the accruals and the clearing entries but in general can be applied for all transactions in the general ledger.

Configurations

1. Select General ledger> Ledger setup > General ledger parameters.
2. On the Ledger settlement stab, set the Advanced ledger settlement option to Yes to turn on the advanced ledger settlement functionality
3. Select Chart of Accounts
4. Add ledger Accounts by clicking “New”, by adding ledger accounts, we are making sure, only these accounts are applicable for advanced ledger settlements

See below screen shot

The Configurations are done

Operations 

To settle ledger transactions, follow these steps.

1. Select General ledger> Periodic tasks > Ledger settlements
2. The settlement form will open and to retrieve transactions for settlement, use the filters like from date and to date, posting layer etc. (note- only the transactions will appear which are related to ledger accounts were added into above setup shown in configurations).

3. Now click on "Display Transactions" 

4. The transactions are visible and select transactions to settle, note- the debit and credit side for the transactions must match with each others 

See below screen shot

5: Now "Settle marked transactions"  and use date for settlement as per desired date-> Settle-> Operation completed 

6: To cross validate if the transactions are settled, you can select "Status" = Settled and click on "Display transactions", it will retrieve the settled transactions you have settled

That's it for now, I hope this has been helpful for you and stay tuned for more articles