Sometimes we get stuck in our ways. Over the last 15 years I had one process to bring in open AP/AR/Inventory in Microsoft Dynamics GP. But I have found a better way.
In the past I would either delete the journal entries created by the open AP/AR/Inventory transactions or (rarely) the “Post To GL” Checkbox in unchecked. Then the GL balances are typically brought in separately.
However, this is my new and improved process to bring in open AP/AR/Inventory
- Import or manually enter Open Transactions: If client doesn’t want to figure out the Sales or Expense account use a Suspense or “9999” type account to offset the control account.
- Post in Subledger
- Post GL batch with GL posting date last date of old system.
- Enter 1 journal entry to backout the balance in the control account and the offset account(s) used.
I feel this process is better because:
- This will make the Reconcile Tools work better.
- The SmartLists for activity for the control accounts will have ALL activity vs. missing open balance transactions.
- Helps with future reconciling research projects.
In addition: I have been recommending that my Dynamics GP clients enable a setting under: Administration>>Setup>>Company>>Company>>Options to check the box called “Separate Payment Distributions”.
- This setting only kicks in if AP or AR transactions are paid at the same time they are entered.
- If transactions are entered and paid without this box checked, the transaction bypasses the control account (example: for AP Transactions the Expense account is Debited and Cash is Credited)
- This also helps with the reconcile issues. Along with changing to posting Open Transactions to the GL, this helps ensure that penny for penny…you can balance by Vendor or Customer ID to the Master ID in the GL Transactions.
- If you check this box, the distribution will look like this:
If is always good to learn new ways to do simple tasks. For more great Dynamics GP Tips and Tricks visit www.calszone.com/tips.
For Dynamics GP training contact CAL Business Solutions at 860-485-0910 x4 or sales@calszone.com.
By Amber Bell, CAL Business Solutions, Connecticut Microsoft Dynamics GP Partner, www.calszone.com