When posting a transaction adjustment on a validated project expense transaction in Dynamics 365 Finance, the system automatically selects the first journal in alphabetical order under the Project – expenses journal type.

This behavior occurs even though no journal is created or posted during the adjustment process. The system’s internal validation still requires a valid journal setup, and because it always selects the alphabetically first journal, users receive authorization errors if that journal is restricted or reserved for a specific user group.

This leads to the following issues:

• Users cannot complete legitimate transaction adjustments unless they have access to a journal they never intended to use.
• There is currently no setup to define or override which journal the system should reference during internal validation.
• Customers are forced to use workarounds, such as:
• Creating a dummy journal (e.g., AAA_Default)
• Renaming journals to influence alphabetical priority
• Granting unnecessary access to restricted journals
• Implementing customizations

The Product Group confirmed this limitation (bug 926693) and marked it as Won’t Fix, but also indicated they will monitor if more customers are impacted.

Proposed Solution

Introduce a configurable parameter that allows administrators to define which journal the system should reference for internal validation when posting a transaction adjustment for project expense transactions. Examples:

1. Parameter in Project Management and Accounting > Setup

• Default journal for internal validation (Project – expenses)
• This journal would be used only for system validation and would not generate postings.

1. Per-Legal-Entity or per-Project setup
2. Similar to other posting configurations, allow the default validation journal to be controlled at different hierarchy levels.
3. Fallback behavior
4. If no journal is specified, the system can still use alphabetical order, maintaining backward compatibility.