Microsoft Dynamics AX (Archived)

Ledger Settlement

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Posted on by lally

Hi All ,

AX 2012 R3 .

Users post some expense entries directly to main accounts using financial journals like Debit entry and credit entry .

After posting the entries , is it mandatory to settle the transactions using ledger settlement or can we leave it also , we would be pros /cons of this functionality ?

Thanks in advance.

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Ludwig Reinhard Microsoft Employee on at

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Hi lally,

I cannot imagine for what reason you would use the ledger settlement functionality for expense accounts.

Ledger settlement are not mandatory and companies usually use this functionality to track an open balance on balance sheet accounts.

Examples are provisions that get reduced, loans, accruals and other long-term transactions that are posted on balance sheet accounts where you need to track the current balance.

Hope this helps,

Ludwig

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lally 8 on at

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[quote user="Ludwig Reinhard"]Examples are provisions that get reduced, loans, accruals and other long-term transactions that are posted on balance sheet accounts where you need to track the current balance.[/quote]

Thanks Luwig for the reply ,

This is what i did not understand , if we post any credit or debit transactions to the main account obviously the balance will automatically change , then why again need to go with ledger settlement functionality .

In which cases we need to apply the ledger settlement ? Please explain with real time business scenario .

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Kristi Slininger 66 on at

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lally,

Let's say you have a balance of 100.00 in AR, but when you look at the detail behind the balance, you could see one thousand different transactions going in and out of the AR account. Those transactions reflect the Dr to increase the balance (invoice) and then the corresponding Cr to reduce the balance (payment). Settlement allows you to mark those DR and CR transactions as settled so you can 'ignore' those for auditing. You would only want to see the 'open' transactions that make up the balance of 100.00. It's similar to settling the invoice and payment in the subledger, but is done at the GL accounting level and is completely optional. It's typically done to make auditing/researching easier.

Hope this helps.

Kristi

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Community Member on at

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Hi Ludwig,

My client actually uses this for accruals and expenses.

But now, aside from seeing the normal transactions, we are seeing what appear to be opening balances for a balance sheet account from a year-end close (example: voucher "close-2015-v2"). True enough, when I checked the trial balance for this account its the amounts refer to the Opening balances.

Is this normal that the Ledger Settlements window will show the opening balances? What causes this? What do we do with them?

Thanks for the help!

Connie

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Hossein.K 6,648 on at

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Hi,

According of below link:

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.

blog.saglobal.com/.../ledger-settlements-in-ax-2.html

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