Fixed Value Financial Dimension for Intercompany Scenario fail when GLs for Intercompany are common between companies

(0) Share

Report

Posted on by Community Member

Hello All,

Microsoft recommends to have separate Main Accounts for each Legal Entities in case of Intercompany Accounting setups. But, On the other side many customers do not prefer so many GL accounts to unnecessarily increase list of COA. and additionally customer wants to track counter partner using financial dimension where Microsoft doc again suggest to map it at IC Main Account level as fixed default dimension value.

Based on the above provided details, I have following question -

1. This is very common scenario where customer do not want so many GLs for Intercompany Accounting/reconciliation. They only prefer two IC common Main Accounts mapped in Intercompany Accounting setup. What is the Available solution in the current explain situation ?

Ideally, Microsoft should pick Financial dimension from source journal line or should have provided option to default financial dimension at Intercompany Accounting Setup.

MS Doc link for reference - Intercompany accounting in Dynamics 365 Finance - Learn | Microsoft Docs

Regards,

Viral Thaker

I have the same question (0)

All responses (5)

Answers (1)

Suggested answer

Michal Krejza on at

Like (0)

Report

Hello Viral,

I am not sure I understand your question. As stated here: Intercompany accounting setup it is recommended as good idea to use unique main accounts for each legal entity, as it is easier to reconcile later. If your customer wants to use two IC accounts, they can set it up. But it will be challenging to reconcile.

But could be I haven't understood the question correctly. Please provide more details in this case. Thank you.

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

Hi Michal,

Thanks for the response !!

I am completely aware of Microsoft recommendation on MS Docs. But Please think of a situation where there are 100 companies in D365 and having common Chart of Account then many customers/clients will not agree to create 200 Main Accounts for Intercompany Accounting and assign fixed value Financial Dimension. and Reconciliation will be handled through Intercompany Financial Dimension. Microsoft should provide a solution to handle such scenarios as well either through new feature or extending the Intercompany setup functionality.

Regards,

Viral Thaker

Was this reply helpful? Yes No
Suggested answer

Sten Baumgarten 12 on at

Like (0)

Report

Hi Viral

My answer is based on the assumption that it's related to the General ledger functionality and not item transactions using IC functionality on the customer and vendors involved.

The only standard functionality is to create separate main accounts for each legal entity and use legal entity override to add the correct legal entity as a fixed dimension for each legal entity being override.

I have been working for a customer with around 150 legal entities and lately a customer with 9 legal entities. Both customers would like to have one IC main account instead of one for each legal entity with IC transactions but it was more valuable to have the correct legal entity financial dimension on the transactions when elimination and consolidation were made afterwards.

Was this reply helpful? Yes No
Suggested answer

Community Member on at

Like (0)

Report

Hi Sten/Michal,

Thanks for your feedback !!

But what I see as proposed future solution where Microsoft Product team can introduce setting default dimension at the Intercompany Accounting setup instead at Main Account > Legal Entity Override. and another problem what I don't understand is 'Why It should be Fixed Value Dimension on Main Account rather allowing the same to edit at the transaction level ?' This is very generic scenario where Microsoft should come up with added feature to fulfil the many customers expectations.

Regards,

Viral Thaker

Was this reply helpful? Yes No
Verified answer

Sten Baumgarten 12 on at

Like (0)

Report

Hi Viral

I very much agree that I same as you prefer a standard solution that don't include one main account (or two if you create one for asset transactions and another for liability transactions).

The issue editing on a transaction level is that you can one edit the financial dimensions on the offset accounts from the intercompany accounts. You don't have access to the intercompany accounts in the journal when you select the corresponding legal entity. D365FO utilizes the intercompany setup and find the relevant intercompany main accounts based on your setup.

Did any of us answer your question even though the current stamdard solution don't have the requested functionality at the moment? If yes please mark the suggested answer with yes. Thanks

Best regards

Sten

Was this reply helpful? Yes No