Transaction-based financial dimension:
There was an easy-to-implement possibility to largely improve GL reporting and analysis capabilities by extending the ledger integration by financial dimensions.
In several setups, a posting integration is defined by ledger account defined in the posting profiles and some additional set-up tables (i.e. item postings, resources postings, fixed asset postings, indirect cost postings, project postings, bank postings, customer/vendor postings, automatic postings, etc.).
The idea is to add financial dimensions to the main account entries. The filled dimension depends on the posting type / transaction type and brings all types of transactions together (cross-module) and hence makes it easier to run reports on GL postings on general level.
Advantages:
1. Quite easy to implement since the framework is already there.
2. Separation of quantity values from transaction values in the GL - more transparancy
3. Enables cash-flow statement according to the direct method as required in financial reporting of many groups of companies
4. Enables standard reports (tax development, provision development, cash development, fixed asset balances, inventory changes) or makes it easier to create from GL (using financial reporting)
5. Reduces number of required GL accounts
This kind of "movement" or "flow" analysis is almost always required by customers but so far hardly supported by D365. The extension brings big improvements by low effort.
Comments
It seems Microsoft picked up also the idea: "System architecture: General ledger integration as a general User Interface instead of hard-coded business logic" from the end of the list ;-)
Category: General Ledger
April, any news on this since 2019? It is still in the top 5.
Category: General Ledger
You need real life scenarios. Here they are:
1. Periodic reporting: Helps to explain developments on account balances throughout the period
2. Cashflow statement: Enables to create a cash-flow statement as a standard report for financial reporting
3. Enabled to get a clear picture about inventory value development from GL perspective
4. Eases to understand receivables and payables and their values (write-off needed)
5. Structures data for financial reporting/BI better
So, it was a very powerful improvement - very little effort to get there.
Just extend the main account settings by financial dimensions.
Category: General Ledger
Can you post a real life scenario for when this would be used ?
Category: General Ledger
Please do this!
Category: General Ledger
Capturing the accounting entries by "Nature" of transactions is the most adequate for evolving the Cash-flow direct method in the best way of information. The cross-checking method will keep the traceability between the concerned GL accounts. A Cash Inflow and Outflow report captured by "Nature" will be an essential tool for analyzing the cash-flow management for a difined period.
A short term review for development the idea, will be a better appreciation and a better improvement for the Financial Staments.
Category: General Ledger
OK
Category: General Ledger
April Olson (administrator) on 10/4/2024 2:09:49 PM
We will be starting research and development on a new 'Accounting rules engine' which will meet this requirement. Think of it as bringing together all the posting profiles into a single location + adding support for more criteria and dimensions. For example, you could define accounting rules differently for customer invoices vs customer credits.
We'll update the Idea when we have more clarity on which release it will come in, but it's tentative for 2025 Wave 2. Please watch the release wave documents and What's new documents also for more details.