Dynamics 365 for Finance – Advanced Ledger Settlements

Hello everyone!

On our previous Ms. DM blog, we were able to unbox and discover the purpose of the entire General ledger parameters. This time allow me to further discuss to you the use and concepts of Advanced ledger settlements.

What are we waiting for? Let us together decipher the features of Advanced ledger settlements using D365 F&O.

MICROSOFT DYNAMICS FOR FINANCE AND OPERATIONS – ADVANCED LEDGER SETTLEMENTS

The feature Advanced ledger settlements has been made available even on Microsoft Dynamics AX 2012 and is continuously being used in Microsoft Dynamics 365 for Finance and Operations. This function is not commonly utilized but Advanced ledger settlements is truly a powerful tool that one can have in using D365 F&O.

The very first thing that we need to discuss is on how to setup Advanced ledger settlements.

In order to enable Advanced ledger settlements, follow the below simple steps:

1. Navigate General ledger > Ledger setup > General ledger parameters
2. Select Ledger settlements section and set the Advanced ledger settlements option to Yes
3. Select the chart of accounts you wish to use and the main accounts under it. You can elect as many as main accounts that you want to use. Remember that this main account/s will be used to filter the transactions for easier reconciliation.
4. Click save and close the General ledger parameters window

Once done with the above setup to enable Advanced ledger settlements, you can now proceed in reconciling transactions which are part of the main accounts selected during setup.

Follow the below procedures in order to perform settlement of transactions.

1. Go to General ledger > Periodic tasks > Ledger settlements
2. Set the following filters: Date range and Financial dimension set
3. Click on Display transactions and notice that the list of transactions will be displayed based on the main accounts selected during setup process. Note: If there are no transactions involving the main account selected on the specified date range such main account will not be displayed.
4. Select the transactions that you want to settle and click the button Mark selected and make sure that marked field will be set to zero after selecting transactions for settlement.
5. Click Settle marked transactions, assign date for settlement and click Settle button.
6. Notice that the settled transactions will have the status Settled.
7. Close the page once done or repeat the process whenever necessary

There are instances where upon checking of the remaining unsettled transactions you will notice that one transaction should already be settled. If this happened, you can still reverse the settled transactions and resettle it on the transaction on where is should be properly settled.

To reverse transactions already settled, follow the below steps:

1. Go to General ledger > Periodic tasks > Ledger settlements
2. Set the following filters: Date range and Financial dimension set
3. Filter Status and select Settled
4. Click on Display transactions and notice that the list of transactions will be displayed based on the main accounts selected during setup process
5. Mark the transactions to be reversed
6. Click Reverse marked transactions

Now that you know how to setup and use Advanced ledger settlements, I know there are still some questions boggling your mind right now. And I am telling you, these questions also came into my mind.

What is the benefit of using Advanced ledger settlements?

Based on my understanding and simulations, Advanced ledger settlements gives the benefit of monitoring the transactions in the system on whether transactions are still open, and which must be settled before month-end or period close.

How this will impact the financial records in the system?

The Advanced ledger settlements feature has no general ledger or accounting impact in the financial records available in D365 F&O. This feature is an improved tool to filter the main accounts which normally affects transactions like receipts, payments, accruals and bank transactions and which are then to be monitored if already settled, reversed or recorded as part of the financial close process.

And how is this different compared with Ledger settlements?

In my opinion, Advanced ledger settlements and Ledger settlements have three primary difference. One is the interface, second is the displayed transactions and third is the process of settling marked transactions.

If Advanced ledger settlements is enabled.

If Advanced ledger settlements is NOT enabled.

As to displayed transactions, remember that as part of Advanced ledger settlements setup you need to select main accounts that will be used as a filter. Having this, on Advanced ledger settlements only the selected main accounts will be displayed on the page but on Ledger settlements all accounts will be displayed on the list.

Lastly is the settlement process, on Advanced ledger settlements once transactions were marked you only need to click Settle marked transactions whereas on Ledger settlements you need to select the transactions that are to be settled then click the button Include which will be displayed on Overview window and click Accept to settle the transactions.

I hope that you find this article as a helpful tool for you to better appreciate and understand, everything and anything about Microsoft Dynamics 365 for Finance and Operations.

It will truly be a privilege if you will allow me to know your thoughts and suggestions for me to further improve the coming featured articles on our blog.

This is Ms. Dynamic Millennial blog. Be equipped. Be informed.

For more related articles, kindly click the below link:

https://community.dynamics.com/365/financeandoperations/b/ms-dynamic-millennial

Reference:

https://docs.microsoft.com/