General journal processing
This topic describes capabilities in Microsoft Dynamics 365 for Finance and Operations that can help make general journal processing easier, and that can also help ensure that correct data is captured and internal control isn't compromised.
One of the most important areas to set up is journal names. It's a good idea to define specific journal names for each purpose, such as intercompany, accrual adjustment, and error correction. You can tailor each journal name to help make data entry for each purpose easy and secure.
On the Journal names page, you can set up the following elements:
- Workflow approval – To increase internal control, define journal workflows that establish materiality limits for review and approval steps, based on criteria such as total debit amount. You set up workflows for the general journals on the General ledger workflows page.
- Default values – Select default values for offset accounts, currency, and financial dimensions.
- Journal control – You can set up restrictions on the company and account type, and also the segment values.
A journal name can be used only for adjustments. In this case, you can specify that only the Ledger account type is valid across all companies.
A journal name can be used only for a specific segment or for a range for main accounts.
The Automatic reversal option is available in general journals. For example, you have an accrual adjustment where the actual document hasn't yet been processed, as shown in the following illustration.
The Microsoft Excel add-in for journal entry provides an additional level of automation and makes data entry easier. The Open lines in Excel action is available on the General journal and Journal voucher pages.
On the Periodic journals page, you can set up recurring journals to automate journal processing.
You can use voucher templates at any time. On the General journals page, the Save and Select voucher template actions are found on the Journal voucher page, under Functions for the voucher lines.
The following setup isn't specific to general journals, but will help ensure that data entry is correct data and easy.
The main account setup provides many options for general journal processing:
DC/CR requirement – Use this option if a main account is limited to debit or credit transactions. The setup is verified when a journal is validated or posted.
Default offset account
Suspended – Suspend a main account for data entry across all companies or for a specific company/legal entity.
Do not allow manual entry – Prevent users from manually entering a value for the account in journals.
Legal entity override – This setup is specific to the defined company/legal entity:
- Default/Validate sales tax
- Default dimension – Not fixed or Fixed value. Fixed value will help ensure that all postings for this main account always use any dimension value that is set up as Fixed.
- User validation – This option controls which users are allowed to post to a main account.
- Posting type validation – This option controls which posting types are allowed for a main account.
Accounting structures and advanced rules structures
Accounting structures and advanced rules structures are extremely important for ensuring that the data that is required for financial reporting and performance tracking is captured during general journal processing and any documentation. Accounting structures and advanced rules structures let you tailor the data entry experience. You can allow data entry only for financial dimensions that are relevant in each situation, and can also enforce the requirement that required and accurate data always be captured.
For more information, see the following topics:
- Planning: Chart of accounts.
- Create advanced rules for journals
- Create a journal entry using a template
- Create and validate journals
- Post periodic journals
- Process ledger allocation journal
You can find Simulate posting on the Validate menu for most journals. When you validate a journal using the Validate function, the system tests the journal for specific error conditions. If you use the Simulate posting function, the system runs all of the same processes that are run during posting without actually posting the journal. You can then review the posting messages that are displayed, fix any errors that you find, and then click the Post menu to post the journal.
Simulate posting is not available for batch processing. However, there is code available to simulate posting in batch and developers can extend the code to add that functionality.