Inquiry: Pre-encumbrance and Encumbrance

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Hi everyone,

We would like to seek your help regarding Encumbrance accounting functionality of AX 2012. I have read that part of the setup is the Posting definition.

1. Is it really necessary to check the box for "Use posting definitions" on General ledger parameters>Ledger>Accounting rules?
When we try to check the box, we got this kind of message. Does this mean that all posting profiles will be disabled?

2. What if we opt not to check the box for #1? Can we still use the Encumbrances functionality?

Best regards,
Edmond

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guk1964 10,888 on at

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Posting definitions can only be used with source documents (FTI, Pending vendor invoices etc.). Use these to setup complex posting rules, e.g. from one customer invoice on several GL accounts i.e. use Posting definitions when multiple offset, balanced ledger entries are needed based on the transaction types and accounts involved.Posting definitions applies to the whole module. When Accounts payable module is selected while creating posting definition then balancing or offset entries of that posting definition will be effective on the whole Accounts payable module.

Use Posting profile when there is only one offset ledger entry needed. Vendors and customers have separate posting profile setups.

For encumbrance accounting have you turned on the Public Sector module? I recommend this post.as an intro Lus.hitachi-solutions.com/.../ax-setup-demonstration-encumbrancecommitment-accounting

Otherwise you need to use Advanced ledger journals - see this post for an introduction nairobiaxusergroup.wordpress.com/.../using-advanced-ledger-entries-over-general-journals

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Hi magic1949,

I have seen the articles you have shared already before I posted the questions. My question still remains about encumbrances. Thanks though for sharing, appreciate it.

Best regards,

Edmond

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Ludwig Reinhard Microsoft Employee on at

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Hello Edmond,

For No1: You have to use posting definitions to make use of encumbrance accounting. Posting profiles will not be dismissed completely as posting profiles do not incorporate all posting types, meaning that you will see a mix in usage of posting profiles and posting definitions.

For No2: No.

I have follow up question: Why do you want to use this public sector feature? What is the business requirement that you have?

Best regards,

Ludwig

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guk1964 10,888 on at

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It depends on whether you are using Public sector module.

If not then the second link I think answers the question

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Hi Ludwig,

The business requirement is to set aside a budget as they are committed for Purchase orders.

Best regards,

Edmond

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Ludwig Reinhard Microsoft Employee on at

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Hello Edmond,

I see. In this case, there is no other way than making use of the public sector feature for encumbrances/pre-encumbrances and the posting definitions discussed previously.

Best regards,

Ludwig

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HI Ludwig,

Can you identify the source documents affected when activating the posting definition? We would like to know if it will affect the current posting profile that we have right now.

Best regards,

Edmond

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Ludwig Reinhard Microsoft Employee on at

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Hello Edmond,

All transactions affected can be identified in this form:

Best regards,

Ludwig

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Community Member on at

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Hi Ludwig,

Appreciate your help.

Best regards,

Edmond

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