CHAPTER 3: DAILY PROCEDURES

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1 Chapter 3: Daily Procedures CHAPTER 3: DAILY PROCEDURES Training Objectives Actively participating during this chapter helps you to: Understand the different types of transactions and the procedures for entering them in Microsoft Dynamics GP General Ledger Learn how to create batches and print edit lists Post transactions in General Ledger Introduction There are two ways to enter transactions in Microsoft Dynamics GP: Batches Groups similar transactions for entry and posting Assigns the transactions to a batch in Transaction Entry Saves and prints an edit list (edits can be made at a later time, prior to posting) When posting transactions from other modules, the system assigns a batch name (in General Ledger) Removes the Batch ID if you wish to post at the transaction level or you can change the batch Single Transactions Enter and post a single transaction at a time Cannot save the transaction or print an edit list When posting from subsidiary modules, the transaction does not post all the way through General Ledger A Batch ID can be entered if you want to save the transaction instead of posting it immediately Posting journals are printed when you close the transaction entry window Page 93

2 Microsoft Dynamics GP General Ledger Several methods are available for posting: Option Definition Benefit General Ledger Effect Transaction Posting Batch Posting Series Posting & *Master Posting Transactions are posted immediately after entry; they are not assigned to a batch Transactions are assigned to a batch; the individual batch is posted Transactions are assigned to a batch; batches from the same series may be marked and posted at the same time Transactions are posted real time and affect reports immediately after entry A group of transactions may be posted at the same time, an Edit List may be printed Time savings due to not having to post individual batches or transactions *All batches can be posted in the Master Posting window A Financial batch is created which must also be posted before the General Ledger is updated The batch will post based on Posting Settings Each batch will post based on Posting Settings Enter Standard and Reversing Transactions TRANSACTIONS FINANCIAL GENERAL Use the Transaction Entry window to enter standard and reversing transactions. Standard transactions are entered and posted once. If they are assigned to a recurring batch, standard transactions can be posted periodically, such as weekly or monthly, or on a specific date, and then automatically or manually deleted from the Microsoft Dynamics GP system. Reversing transactions can be used in situations where cash is paid or received, or an expense is realized, in the following period. Examples of such accruals include salaries that have not been paid or revenues that have not been billed. Page 94

3 Chapter 3: Daily Procedures General Transaction Entry Checklist 1. OPTIONAL. Create a batch in which to enter transactions using the Batch Entry window. 2. Enter a journal number (or accept the default). 3. Select the transaction type. 4. Enter transaction information. 5. Post single transactions. 6. If batch posting, print a transaction edit list. 7. Make a backup and post the transactions. Batch Entry General Transaction Entry Checklist, Step 1 TRANSACTIONS FINANCIAL BATCHES Use the Batch Entry window to create batches in which to record standard and reversing transactions. Using batches is optional. Page 95

4 Microsoft Dynamics GP General Ledger Batch ID and Comment A Batch ID is the identifier for a batch. Use an ID that is descriptive and easily recognized. Enter a comment to further identify the batch. HINT: The Batch ID lookup window lists all unposted batches in General Ledger, including those coming from other modules. Origin Select whether this batch is used to enter general or clearing transactions. The selection made here determines which transaction entry window opens when you select the Transactions button from this window. Frequency If you entered a batch frequency other than single-use, you can specify the number of times to post the batch. If you select Miscellaneous as the batch frequency, you can enter a specific number of days to increment the transaction date. If you select a batch type other than Miscellaneous, the transaction date is incremented according to the type. For example, the transaction date is incremented by seven days if you select Weekly as the batch type. Recurring batches can be posted continuously if you have not set a limit on the number of recurring postings. Recurring batches save valuable data entry time if you are certain the same entries will be made again in the future. You can delete recurring batches at any point. HINT: Transactions saved in recurring batches can be accessed and edited like transactions in single-use batches. Break Down Allocation When this check box is selected and a transaction is entered for an allocation account, the edit list and posting journal lists the distribution accounts along with the amounts that are posted to the distribution accounts. Page 96

5 Chapter 3: Daily Procedures Transactions and Batch Total Control Control fields are available to enter the number of transactions and the total amount of the transactions that are entered in the batch. These fields can be used as a reference against the Actual fields to manually verify that the correct number of transactions and batch total have been entered before processing or posting. If you verify the number of transactions and totals for the batch in the Posting Setup window, you cannot mark or post the batches until the actuals are equal to the controls. HINT: Batch totals in General Ledger are calculated using the "absolute values" of debits and credits. For example, if you have a journal entry with a debit of $200 and a credit of $200, the batch total would be $400. Password Approval If Require Batch Approval is selected and an Approval Password has been entered in the Posting Setup window, and the Approved check box is selected on this window, you must enter the approval password before you can select the batch for posting. Do not select the Approved check box until all transactions have been entered, verified, and the batch is ready for posting. When a batch requires approval but has not been approved, it has a posting status of Unapproved. A status of Unapproved indicates that the batch has not yet been approved and is available for editing. A batch that requires approval must be approved before it can be selected for posting. User ID and Approval Date Once a batch has been approved, the User ID field is updated with the User ID of the person who approved the batch. The Approval Date contains the current system date at the time of approval. Transactions Button Clicking this button opens the Transaction Entry window if the batch origin is General Entry. If the batch origin is Clearing Entry, the Clearing Entry window opens when you click this button. Page 97

6 Microsoft Dynamics GP General Ledger Transaction Entry Journal Entry Numbers General Transaction Entry Checklist, Step 2 TRANSACTIONS FINANCIAL GENERAL Each transaction entered is assigned a journal entry number. The starting journal entry number specified in the General Ledger Setup window appears as the default. Each time you save or post transactions, the default journal entry number is incremented by one. The number may appear to increment by two or more if more than one person is entering transactions in the system at the same time. Journal entry numbers appear on the edit list and posting journal as part of the audit trail code. HINT: The same journal entry number cannot be used twice in a single use batch in an open fiscal year. HINT: The lookup window for the Journal ID shows all unposted journal entries in General Ledger regardless of which Batch ID has been selected. Page 98

7 Chapter 3: Daily Procedures Transaction Type General Transaction Entry Checklist, Step 3 Standard transactions are the most common entries they are simple general journal entries. Reversing transactions reverse the effects (debit and credit entries) on a later date. Generally speaking, entries that involve the accrual of assets (such as unbilled revenues) or the accrual of liabilities (such as salaries) may be reversed because they result in a future cash receipt or payment. For example, you can enter an adjusting entry on December 31, 2006, to recognize US$1,000 of accrued salaries payable for the last day of the year. This adjusting entry may record one day's salaries that had been incurred but not yet paid. If you pay salaries every four weeks, the next payday would be Friday, January 25, By selecting the adjusting entry to be reversed on January 1, 2007, you can simplify your accounting procedures, because you do not have to remember that US$1000 of accrued salaries payable had been recorded on December 31, and must be reversed. If the transaction was not reversed, you must debit both Accrued Salaries Payable and Salaries Expense on January 25. HINT: When reversing transactions are posted, the original transaction and the reversal transaction are posted at the time the original transaction is posted. Enter Transaction Information General Transaction Entry Checklist, Step 4 Transaction Date The transaction date entered is the General Ledger posting date. If you are entering a Reversing transaction, you must also specify the date the transaction should be reversed. Transactions within the same batch can have different dates as long as the debits and credits balance for each journal entry. Source Document and Reference The source document refers to the business paper from which the transaction originated. Source document codes default from the entries made on the Audit Trail Codes Setup window. Using the source document, you can easily identify where a transaction originated in the system. The reference is used to enter a description of the transaction. A reference must be entered for each transaction. Page 99

8 Microsoft Dynamics GP General Ledger Audit Trail Information The transaction date, source document, and reference are collectively referred to as audit trail information and appear on posting journals and on the crossreference reports. External auditors may use this information to verify the accuracy or effectiveness of your records and record-keeping processes. HINT: Distribution references print on the Trial Balance Detail reports. Enter Accounts and Amounts If you want to enter transactions to existing accounts, enter the accounts or select them from the Account lookup list. You also can add a new account simply by entering a new account number. The system prompts you to enter the information needed to add the account to the chart of accounts. Specify the debit or credit amount for each distribution account. Microsoft Dynamics GP adheres to the rules of double-entry accounting; in which debits must equal credits. If they are not equal, the system saves the record but does not allow it to be posted until the amounts are equal. Running totals of the debits and credits entered for each journal entry and the difference between the two are displayed at the bottom of the window. Clicking the Show button on the transaction scrolling window displays three lines of information. The second line displays the account description, which is displayed automatically when you select an account number. The third line is used to enter a detailed distribution reference. You can enter a distribution reference for each account in the transaction. HINT: Transactions can contain both posting and unit accounts; however, amounts posted to unit accounts do not affect the transaction total. HINT: If you enter a debit and credit on the same line, the debit entry is deleted automatically when you press TAB to move the highlight to the following line. HINT: To delete a line from a transaction, select Delete Row from the Edit menu. To insert a line on a transaction, select Insert Row from the Edit menu. HINT: You can enter negative amounts in either the Debit or Credit column. After you tab off the field, the amount moves to the appropriate column. Page 100

9 Chapter 3: Daily Procedures Calculate Taxes in General Ledger TRANSACTIONS FINANCIAL GENERAL TAX ENTRY BUTTON Use the Tax Entry window to enter taxable transactions that can't be entered in Payables Management, Receivables Management, Purchase Order Processing, or Sales Order Processing. For example, a taxable expense reimbursement to an employee should be entered in the General Ledger. You could enter this transaction in Payables Management, but it would require that the employee be set up as a vendor. General Ledger also can be used to make corrections to tax transactions from other modules. This feature is activated by selecting the option to Calculate Taxes in General Ledger in the Company Setup Options window. HINT: The Company Setup Options window is located by clicking the Options button on the Company Setup window. Once the option is activated a Tax Entry button is enabled in the General Entry window. Taxes do not calculate automatically in General Ledger. You must select the Tax Entry button and manually calculate the tax amount. Transactions containing tax entries must use a transaction type of Standard. A journal entry that contains tax records can be saved in a single-use or recurring batch. HINT: Tax information cannot be entered for Reversing, Clearing, or Quick Journal entries. Page 101

10 Microsoft Dynamics GP General Ledger When a journal entry that contains tax records is deleted, all tax information associated with the transaction is removed. Journal Entry The journal entry number defaults from the Transaction Entry window and may not be edited. Transaction Type Decide if the transaction type creates a debit distribution or a credit distribution. Use a debit distribution to debit the tax expense account when entering a purchase transaction; use a credit distribution to credit the tax payable account for a sale transaction. For example, you could enter a transaction to reimburse an employee for supplies they purchased for a company meeting. Use a transaction type of Debit to create a debit distribution for the tax expense account. Your entry would be as follows: Company Meetings IL State Sales Tax Expense Cash HINT: In the above example, the expense and tax expense distributions are created automatically based on your entries in the Tax Entry window. Page 102

11 Chapter 3: Daily Procedures Account Enter or select the account to which this transaction distribution will be posted. Posting, fixed, or variable allocation accounts may be used for this transaction. Sale/Purchase Amount Enter the amount of the sale or purchase for which taxes are calculated. This amount should not include any tax amount. Tax Detail/Tax Amount/Taxable Sale/Purchase Enter or select the tax detail used to calculate taxes for this entry. As soon as the tax detail is selected the taxable sale/purchase amount and the tax amount are displayed. The tax amount may be edited at any time before you click the Create button. Once the tax distribution is created you cannot edit the tax amounts you add in this window. Instead, if changes are needed, use EDIT DELETE ROW and redo the tax entry to correct any error. Distribution Reference In the Distribution Reference field, you can enter a description for the new General Ledger distributions. The Reference entry from the Transaction Entry window is the default Distribution Reference. Create Click Create to create tax distributions. The Tax Entry window closes and the Transaction Entry window is updated. Two distributions are created in Transaction Entry: Taxable sales/purchases amount portion of the tax record to the account you specify Tax amount portion to the tax account assigned to the selected tax detail Only the account numbers and distribution references can be edited for the distributions; you cannot edit the debit or credit amounts. HINT: You are not able to edit the tax amounts you add in the Tax Entry window. Instead, if changes are needed, use EDIT DELETE ROW and redo the tax entry to correct any error. The debit or credit amounts for the taxable sales/purchases amount and tax amount distributions can be negative. If negative amounts are entered in the Tax Entry window, the taxable sales/purchases amount and tax amount distributions also will be negative. Page 103

12 Microsoft Dynamics GP General Ledger Post Single Transactions General Transaction Entry Checklist, Step 5 If you are entering transactions individually, (without a batch ID) they must be posted at this point by clicking the Post button. Transactions entered individually cannot be saved and posted later. Transaction Edit List When you close the Transaction Entry window, the General Transaction Posting Journal may be printed, based on your posting settings, for all transactions posted using the transaction-level method since the last time the window was opened. General Transaction Entry Checklist, Step 6 Always print a General Transaction Edit List before posting and verify the accuracy of the transactions you have entered. Edit lists can be printed only for transactions entered in a batch. To print a transaction edit list select Print from the File menu or using the Printer icon. You can print an edit list from either the Transaction Entry or Batch Entry window, as long as a batch ID has been entered. After you print the edit list, information stays in the window so further editing can be done. If you found errors on the edit list, correct the transactions and print another edit list before posting. Errors on a journal entry can be corrected by first locating the journal entry in the Transaction Entry window. The browse buttons or the Journal Entry lookup may be used to find the entry. Once you have corrected the error, save the entry. If you decide that a journal entry is no longer valid, it can be deleted or voided based on the options selected in the General Ledger Setup window. Reprint the edit list to verify all corrections are accurate. Page 104

13 Chapter 3: Daily Procedures Post Transactions General Transaction Entry Checklist, Step 7 HINT: Always back up company data before posting batches of transactions. If there is a power fluctuation or some other posting problem, you can restore your data and begin the posting process again. Transaction batches can be posted individually using the Batch Entry window. Select or enter the appropriate Batch ID, then click Post. If you need to post multiple general ledger batches at one time, you can use the Series Post window. Select the batches to post, and click Post to begin the process. To view more information regarding the available batches, click the Show Details button. Master Post can be used to post multiple batches from all series. The view can be selected by series. This window is similar to the series post window, select the batches and then click Post to begin the process. Depending upon the way your Microsoft Dynamics GP system has been set up, the posting journals may or may not be printed when you post batches. Audit trail reports are optional; you can select to print them when the Microsoft Dynamics GP system is set up. Refer to the "Posting Setup" section of the Foundation I training manual for additional information on posting transactions. HINT: The audit trail reports for individually posted transactions (Transaction Entry and Clearing Transaction Entry) are generally the same as the audit trail reports for transactions posted in batches. The reports for individually posted transactions, however, contain information only for the transactions that were entered and posted since the transaction entry window was opened. Page 105

14 Microsoft Dynamics GP General Ledger Lab 3.1 Transaction Entry, Unit Accounts Company: Fabrikam, Inc. Scenario: You previously set up a Unit Account to track the square footage of the Installation department. Now, record the amount of square footage used by the department. Enter a journal entry transaction to increase the Square Footage- Installation unit account amount. Challenge Yourself! Enter a journal entry to increase account by 250,000. Use a Transaction Date of January 25, Post the transaction and print any posting journals to the screen. Page 106

15 Chapter 3: Daily Procedures Lab 3.1 Transaction Entry, Unit Accounts Company: Fabrikam, Inc. Scenario: You previously set up a Unit Account to track the square footage of the Installation department. Now, record the amount of square footage used by the department. Enter a journal entry transaction to increase the Square Footage- Installation unit account amount. Need a Little Help? Navigate to the Transaction Entry window to enter a journal entry (TRANSACTIONS FINANCIAL GENERAL). Enter all the appropriate information for a Standard journal entry. Use a Transaction Date of January 25, Enter a Debit to account of 250,000. Post the transaction and print any posting journals to the screen. Page 107

16 Microsoft Dynamics GP General Ledger Lab 3.2 Transaction Entry, Allocation Accounts Company: Fabrikam, Inc. Scenario: Previously, you set up a variable allocation account to allocate utility expenses to the department level based upon the square footage of the various departments. Next, enter a journal entry to record the utility expense for the month. Challenge Yourself! Enter a Standard journal entry, Debit the variable allocation account for $8, and Credit Use a Transaction Date of January 25, Save the transaction in a Single Use Batch called EXP, be sure to select the Break Down Allocation option. Print an Edit List to the screen. HINT: Note the effect of selecting "Breakdown Allocation" for the batch. Post the transaction, printing any posting journals to the screen. Page 108

17 Chapter 3: Daily Procedures Lab 3.2 Transaction Entry, Allocation Accounts Company: Fabrikam, Inc. Scenario: Previously you set up a variable allocation account to allocate utility expenses to the department level based upon the square footage of the various departments. Next, enter a journal entry to record the utility expense for the month. Need a Little Help? Navigate to the Transaction Entry window to enter a journal entry (TRANSACTIONS FINANCIAL GENERAL). Enter all appropriate information for a Standard journal entry. Use a Transaction Date of January 25, Enter the variable allocation account number and a Debit amount of $8, Enter a Credit to account for the same amount. Create a Single Use Batch called EXP and same the transaction. Be sure to choose the Break Down Allocation option when setting up the batch. Print an Edit List to the screen. HINT: Note the effect of selecting "Breakdown Allocation" for the batch. Post the transaction by going to the Batch Entry window and selecting the Post button. Print any posting journals to the screen. Page 109

18 Microsoft Dynamics GP General Ledger Lab 3.3 Transaction Entry, Recurring Transaction Company: Fabrikam, Inc. Scenario: Asset depreciation expenses are recorded on a monthly basis. Currently, the journal entry is re-keyed manually every month for the end of month processing. You have decided that it would be more efficient to have the depreciation journal entry set up as a recurring transaction. Challenge Yourself! Set up a Monthly recurring batch called Depreciation, with a Recurring Posting of 0. Enter a transaction with the following information: Transaction Type Standard Transaction Date April 30, 2007 Reference Monthly Depreciation Enter a Debit to account for US$1, Enter a Credit to account for the same amount. Print an Edit List to the screen to verify the accuracy of your entry. Post the transaction using the Series Post window. HINT: Return to the batch entry window to note how the Last Date Posted and Times Posted fields have been updated for your recurring batch. Page 110

19 Chapter 3: Daily Procedures Lab 3.3 Transaction Entry, Recurring Transaction Company: Fabrikam, Inc. Scenario: Asset depreciation expenses are recorded on a monthly basis. Currently, the journal entry is re-keyed manually every month for the end of month processing. You have decided that it would be more efficient to have the depreciation journal entry set up as a recurring transaction. Need a Little Help? Navigate to the Batch Entry window (TRANSACTIONS FINANCIAL BATCHES). Set up a Monthly recurring batch called Depreciation, with a Recurring Posting of 0. HINT: By leaving the recurring postings at zero, this recurring batch is not limited to a set number of postings. It remains in the system until you delete it. Click the Transaction button and enter a transaction with the following information: Transaction Type Standard Transaction Date April 30, 2007 Reference Monthly Depreciation Enter a Debit to account for US$1, Enter a Credit to account for the same amount. Print an Edit List to the screen to verify the accuracy of your entry. Navigate to the Series Post window (TRANSACTIONS FINANCIAL SERIES POST). Select the Depreciation batch and post it. HINT: Return to the batch entry window to note how the Last Date Posted and Times Posted fields have been updated for your recurring batch. Page 111

20 Microsoft Dynamics GP General Ledger Enter Clearing Transactions TRANSACTIONS FINANCIAL CLEARING There may be times when you are no longer using an account and want to transfer its balance to another account. In these cases, a clearing transaction is the appropriate option. Clearing transactions are useful when accounts are obsolete, but cannot be deleted because they have current year activity that should appear on the financial statements. By clearing the account's balance, you can select it as inactive which prevents it from being used again. An example of a clearing entry is a transaction to clear the expense account for a promotions event. If the promotion is finished but a balance remains in the account, you can transfer the balance to another account. You still have a record of the account's activity for the current year, and you can reuse the account later for another promotion if you wish. Clearing transactions can also be used for accounts with balances that are periodically cleared to other accounts, such as departmental sales accounts, which are cleared to controlling sales accounts at the end of each accounting period. Clearing Transaction Entry Checklist 1. OPTIONAL. Create a batch in which to enter transactions using the Batch Entry window. 2. Enter a journal number (or accept the default). 3. Enter transaction information. 4. Post single transactions. 5. When batch posting, print a transaction edit list. 6. Make a backup and post the transactions. Page 112

21 Chapter 3: Daily Procedures Batch Entry Clearing Transaction Entry Checklist, Step 1 The batch entry information for clearing entry is the same as discussed earlier in the General Transaction Entry section of this manual. A batch can be added from the clearing entry window, or can be created in the batch entry window. HINT: When creating a batch in the batch entry window, select Clearing Entry as the origin. Only batches with an origin of Clearing Entry are available in the Batch ID lookup in the Clearing Entry window. Journal Entry Number Clearing Transaction Entry Checklist, Step 2 Journal entry numbers work the same way for clearing transactions as they do for standard or reversing transactions. Each transaction entered is assigned a journal entry number. The starting journal entry number specified in the General Ledger Setup window appears as the default. Each time you save or post transactions, the default journal entry number is incremented by one. Journal entry numbers appear on the edit list and posting journal as part of the audit trail code. Page 113

22 Microsoft Dynamics GP General Ledger Enter Transaction Information Clearing Transaction Entry Checklist, Step 3 Audit Trail Information The transaction date, source document and reference entries are the same as discussed earlier in the general Transaction Entry section of this manual. Balance Next, select Year-to-Date Balance or Period Balance to indicate which periods' account balances are cleared during posting. If you select the Year-to-Date Balance, the system transfers the current year balance through the period in which the transaction date falls. The entire balance is transferred as one summary transaction. For example, if the transaction date is February 15, 2007, all the January and February transactions are cleared even if there are transactions after February 15, 2007, in that period. If you select the Period Balance, the system transfers the entire balance for the period in which the transaction date falls. Make your selection, and then save the entry. Using the same example as above, selecting period balance clears only the February transactions. Enter an Account and an Offset Account Enter the account you want to clear and the offset account that receives the cleared account's balance. Variable and fixed allocation accounts cannot be cleared because they do not have account balances. However, allocation accounts can be used as the offset account. If the account you enter is a posting account, the offsetting account also must be a posting account or a posting allocation account. The same principle applies to unit accounts: if the account to be cleared is a unit account, the offsetting account must be a unit account or unit allocation account. You also can enter detailed distribution references for each account entry in the transaction. These are entered in the same manner as discussed in the general Transaction Entry section of this manual. Page 114

23 Chapter 3: Daily Procedures Post Single Transactions Clearing Transaction Entry Checklist, Step 4 Transaction Edit List Single transactions are posted in the same manner as discussed in the General Transaction Entry section of this manual. Clearing Transaction Entry Checklist, Step 5 Post Transactions Clearing Entry Transaction Edit lists are printed in the same manner as discussed in the General Transaction Entry section of this manual. They are printed from either the Batch Entry or Clearing Entry window. Clearing Transaction Entry Checklist, Step 6 Clearing Entry Transaction batches are posted in the same manner as discussed in the General Transaction Entry section of this manual. Page 115

24 Microsoft Dynamics GP General Ledger Lab 3.4 Clearing Entry Company: Fabrikam, Inc. Scenario: Fabrikam, Inc. ran a direct mail sales promotion that ended last month. The related expenses were tracked in a separate account; now it is time to clear the balances in the special account that is no longer needed. Challenge Yourself! Enter a Clearing Entry to clear the Year-to-date amounts from account to the Offset account Use a Transaction Date of February 1, Enter a distribution reference of "Direct Mail Promo" for the distribution to account Post the transaction and print any posting journals to the screen. Page 116

25 Chapter 3: Daily Procedures Lab 3.4 Clearing Entry Company: Fabrikam, Inc. Scenario: Fabrikam, Inc. ran a direct mail sales promotion that ended last month. The related expenses were tracked in a separate account; now it is time to clear the balances in the special account that is no longer needed. Need a Little Help? Navigate to the Clearing Entry window (TRANSACTIONS FNANCIAL CLEARING). Leave the Batch ID field blank. Enter a Clearing Entry to clear the Year-to-date amounts from account The Offset account is Use a Transaction Date of February 1, Enter a distribution reference of "Direct Mail Promo" for the distribution to account Post the transaction and print any posting journals to the screen. Page 117

26 Microsoft Dynamics GP General Ledger Quick Journal Entry TRANSACTIONS FINANCIAL QUICK JOURNAL Quick journals provide a method of time-saving journal entry that does not require batches. Using Quick Journal Entry, you can record particular types of transactions, such as sales on account or monthly payroll, specifying the offset account just once when you set up the quick journal. Unlike standard transactions entered individually without a batch ID, quick journal transactions can be saved and posted at a later date. Quick journals are beneficial for the types of transactions that you post to the same accounts on a regular basis, but for which the amounts change from posting to posting. HINT: Use recurring batches (General Entry) for transactions that use the same accounts and for which the amounts do not change from posting to posting. Transactions that require many different entries can be simplified using the quick journal method. For example, payroll transactions often require many entries such as debits to Employer's Tax Expense and Wages Expense broken down by department. Instead of entering nearly a dozen accounts, you can set up a quick journal and enter only the transaction amounts. The total of the amounts you enter could be offset to an account such as the Cash account. For any General Ledger transactions that recur and affect many accounts but are offset to a single ledger account, Quick Journal Entry saves valuable data entry time. Quick Journal Entry Checklist 1. Enter a journal entry number (or accept the default). 2. Select a Quick Journal ID. 3. Enter transaction information. 4. Print a transaction edit list. 5. Make a backup and post the transactions. Page 118

27 Chapter 3: Daily Procedures Journal Entry Number Quick Journal Entry Checklist, Step 1 Journal entry numbers work the same way for quick journal transactions as they do for standard or reversing transactions. Journal ID Quick Journal Entry Checklist, Step 2 The quick journals created in Quick Journal Setup are used for entering transactions (if you have not created quick journals yet, they can be added at this point). Once you select a quick journal, the following appear as defaults: The description Reference Offset account Source document code Breakdown allocations Accounts entered during the setup process You can add to or delete accounts from those that have defaulted; however, if you want to permanently change the Quick Journal for future entries, you must do so using the Quick Journal Setup window. Page 119

28 Microsoft Dynamics GP General Ledger Enter Transaction Information Quick Journal Entry Checklist, Step 3 Audit Trail Information The transaction date, source document, and reference entries are the same as discussed earlier in the general Transaction Entry section of this manual. Offset Account A default offset account is displayed, but you can select another offset account if you selected the option during the setup process. Control Balance Entering a control balance is optional. The balance you enter here is compared with the total of all amounts entered in the scrolling window. If a control balance is entered, the balances must match before you are allowed to post. This is the amount posted to the offset account specified. Enter Amounts Enter the debit and credit amounts for the transaction. Amounts entered in the scrolling window can be both debits and credits. The difference between total debits and credits is the amount applied to the offset account. You can also enter detailed distribution references for each account entry in the transaction by clicking the Show Details button. You do not have to enter an amount for every account that has been set up as part of the quick journal if that account is not needed for a particular posting. Save Transactions (Optional) Quick Journal Entry Checklist, Step 4 A quick journal may be saved by clicking the Save button. You can then return to the window at a later time to edit and/or post the transaction. Saved quick journals can be selected using the browse buttons or the Journal Entry lookup. Quick Journal Edit Lists & Posting Quick Journal Entry Checklist, Step 5 & 6 Always print an edit list before posting to verify the accuracy of your entries. To print an edit list, select Print from the File menu or use the Printer icon. If you identified errors in transactions on the edit list, correct the errors and print another edit list before posting. Quick Journal Entry transactions are posted in the same manner as discussed in the Transaction Entry section of this manual. Page 120

29 Chapter 3: Daily Procedures Lab 3.5 Quick Journal Entry Company: Fabrikam, Inc. Scenario: You received the payroll expenses for the last pay period from your accountant. Use the quick journal created earlier to record the transaction. Challenge Yourself! Enter a Quick Journal to record the payroll transaction. Use a Transaction Date of April 15, Use the following amounts: Control Balance $6, Debit $9, Debit $1, Credit $ Credit $ Credit $2, Credit $ Post the transaction and print any posting journals to the screen. Page 121

30 Microsoft Dynamics GP General Ledger Lab 3.5 Quick Journal Entry Company: Fabrikam, Inc. Scenario: You received the payroll expenses for the last pay period from your accountant. Use the quick journal created earlier to record the transaction. Need a Little Help? Navigate to the Quick Journal Entry window (TRANSACTIONS FINANCIAL QUICK JOURNAL). Enter a Quick Journal to record the payroll transaction. Use Journal ID: Payroll. Use a Transaction Date of April 15, Use the following amounts: Control Balance $6, Debit $9, Debit $1, Credit $ Credit $ Credit $2, Credit $ Verify that the Control Balance field matches the Balance field in the scrolling window. Post the transaction and print any posting journals to the screen. Page 122

31 Chapter 3: Daily Procedures Linking Transactions TRANSACTIONS FINANCIAL TRANSACTION MATCHING Use the General Ledger Transaction Link Maintenance window to link distributions from multiple posted transactions. Depending on how you set up transaction matching, you can link distributions to a single account or multiple accounts. To use Transaction Matching, you link transaction distributions that have a relationship. For example, you can link period-end adjusting entries to the original transactions, or link a set of transactions associated with a project. After you have created links, you can also create groups of linked transactions. For example, you could create a group of links for period-end adjustments to aid in the audit process. Link Number and Description Accept the default Link Number entry from the setup as it cannot be overridden. Enter a description for the distributions you want to link. For example, if linked transactions are associated with a building project, you could enter "Building" as the description to identify the linked transactions. Link Date Enter the date you want to use for this link. The date entered here determines whether the link should be archived when you archive links. Page 123

32 Microsoft Dynamics GP General Ledger Account and Year Enter an account that has distributions you want to include in this link. Also, select the appropriate year where you want to view distributions. All transactions posted to the account selected appear in the scrolling window. Use the fields below to limit the information in the scrolling window if necessary, and search for the distributions you want to link more efficiently. If you enter range restrictions, click the Redisplay button at the top of the window to display the restricted list of distributions. Linking Transaction Distributions Select the Link option for each distribution you want to include in this link. As you select distributions, the debit or credit balance and the number of distributions located at the top of the window are updated. If you want to include distributions of a different account and have set up transaction matching to allow multiple accounts, enter that account and any range restrictions you need to locate the appropriate distributions. Click the Save button to save linked distributions. You can then edit the linked distributions or add additional distributions in this window. Transaction Matching Groups TRANSACTIONS FINANCIAL TRX MATCHING GROUPS Use the Transaction Matching Group Maintenance window to create and modify groups of transaction distribution links. Each link that is set up can be assigned to a group using this window. Assign a Group ID and select the links in the group. Click the Save button and save the Group. Page 124

33 Chapter 3: Daily Procedures Revenue and Expense Deferrals Revenue and Expense Deferrals is an additional product you can purchase to increase the functionality of your Microsoft Dynamics GP system. Revenue and Expense Deferrals provides deferral functionality and enables users to defer revenue and costs over a specified period. Allocation types can be created within the system and then applied against transactions as they originate in General Ledger, or in a number of sub ledgers. The sub ledgers that support Revenue and Expense Deferrals for General Ledger are: Receivables Management Payables Management Sales Order Processing or Invoicing Purchase Order Processing Inventory Control You can also perform "retro allocations" for previously posted transactions to provide consistency and accuracy to audit trails. Revenues and costs are realized according to the rates they are applied to within the system, enabling more accurate accounting without additional administrative work. For additional information on this product, contact Microsoft or your Partner. Page 125

34 Microsoft Dynamics GP General Ledger Batch Recovery TOOLS ROUTINES BATCH RECOVERY If there is a power fluctuation or some other posting interruption, or if any transactions in a batch you posted contain errors, use the Batch Recovery window to complete posting for interrupted batches or select the batches containing errors for edit. To open the Batch Recovery window, select Batch Recovery from the Routines menu which is on the Tools menu. The following chart provides definitions of each status; it also shows the actions you must take to recover a batch so selected. Status Definition Actions you must take Posting Interruption Interrupted during the actual posting process. Select the batch and click Continue. Printing Interruption Interrupted during the printing phase. Select the batch and click Continue. Updating Interruption Interrupted during the cleanup phase. Select the batch and click Continue. Page 126

35 Chapter 3: Daily Procedures Status Definition Actions you must take Recurring Error A posting error was found in a recurring batch. Select the batch; the status changes to Edit Required. Note which batch needs edits and click Continue. The batch status changes to Available and the batch can be edited and reposted following normal procedures. Single-use Error A posting error was found in a single-use batch Select the batch; the status changes to Edit Required. Note which batch needs edits and click Continue. The batch status changes to Available and the batch can be edited and reposted following normal procedures. Conclusion Daily Procedures Some key points to remember from this chapter include: Transaction Entry can be used to enter most standard General Ledger transactions. Reversing and Clearing Transactions can help speed data entry by automatically reversing and clearing amounts. Quick Journal transactions can be used for some journal entries. Quick Journals are excellent for recurring transactions where the amount changes and the accounts remain the same. Recurring batches are useful for transactions that occur frequently, such as monthly depreciation. The transactions are entered once and saved to a recurring batch, which needs only to be posted on a regular basis depending on the frequency. The posting date will automatically increment based on the frequency selected. Transactions can be posted as single entries or in batches. Edit lists can be printed from a transaction entry window or the Batches window. Batches can be posted in the Batches window, in Series Posting or using the Master Posting window. Page 127

36 Microsoft Dynamics GP General Ledger Quick Interaction: Lessons Learned Take a moment to write down three Key Points you have learned from this chapter: Page 128