General Ledger

The two most important components of the general ledger area are the chart of accounts and budgets. The chart of accounts allows quick access to accounts, and budgets make it easier to compile real and budgeted amounts. The chart of accounts is the company’s financial backbone. It is a list of general ledger accounts where the main ledgers are collected during the tax year. Records are created automatically as a result of registering business transactions through documents such as purchase invoices, sales or any other financial transactions. The correct processing of these documents is crucial, which is why it is necessary to properly define various types of accounting settings.

Budgets is a summary of planned expenses and revenues. It is an essential tool that is used during data analysis to assess the actual financial condition of the company in relation to the forecasted results. In the ERP system, you can create several budgets for the same periods, create simple or complicated budgets, copy budgets from previous periods and correct actual or budget data using a correction factor, and export and import budgets using Microsoft Excel.

The account sheets are used to create account statements listed in the chart of accounts, providing the necessary information about them. You can define a variety of sheet layouts to determine what information to extract from the chart of accounts. One of the most important functions of the sheets of accounts is to provide space for calculations that can not be performed directly in the chart of accounts. By combining the cost types and the cash flow account entries in the account plan, for example, the user can, for example, prepare reports on cost accounting and cash flow. The account sheets can be printed and exported to a Microsoft Excel file. Dynamics NAV offers additional 3 service options:

Shared account sheet – an account sheet selected as shared has defined rows that can be used in the formulas of all sheet accounts. Thanks to this, it is not necessary to enter the same parameters repeatedly for the calculation of amounts in a given item of the report in the rows of multiple sheets of accounts. You should define such a line once – in a shared sheet of accounts. In other worksheets, it is enough to indicate in the selected item the definition of the row of the shared sheet of accounts that the system should use.

Saving the results of the sheet of accounts – this function allows you to control the changes in value in the financial books. Each version of the saved results of the sheets of accounts is identified by the system according to its number. This one is transmitted in accordance with the selected numbering series automatically, at the time of saving.

Source of the amount calculated in a row with the Formula type – it is possible to display the method of calculating the amount displayed in the Preview sheet of accounts window in rows with the selected summation type. Thanks to the formula, there is no need to switch the Preview and Edit windows within the sheet of accounts. In Microsoft Dynamics NAV, the Preview window contains a calculated amount, and Edit a formula definition in a row.

The general journals in Microsoft Dynamics NAV allow you to post information to the General Ledger and to other accounts. The main log also applies when you post the allocation of costs and other postings to accounts. If necessary, later withdrawal and correction of incorrect entries is possible.

In the Microsoft Dynamics NAV system, it is possible to register multi-currency transactions. Such transactions in the general ledger entries are presented as the zloty equivalent calculated using the currency exchange rate, and two amounts are presented in the records of the auxiliary books: the value in the transaction currency and the zloty equivalent calculated in the same manner as in the general ledger entries. To facilitate the handling of multi-currency transactions, the ERP system allows you to define currencies and exchange rate records that are applicable when converting transactions in the selected currency in a given period. In addition, it facilitated the registration of exchange rates by importing them from the Internet, from the place where they are made available by the National Bank of Poland.

Pursuant to the provisions of Polish law, costs and revenues can be booked in general ledger accounts only on the debit side or only on the credit side. This is related to the need to keep the turnover clean. For this reason, some transactions must be booked as adjustments. The functionality enforces the posting of corrections on the relevant pages of the relevant ledger accounts and posting adjustments in warehouse transactions (issues in warehouse transfer transactions, write-off of the expected cost). It also allows the user to easily handle postings corrections – with one click (posting in the general ledger, inventories and orders).

The financial year closing procedure in the Microsoft Dynamics NAV ERP system consists of three steps: launching the Close year function, generating the year closing records with the help of the Close result calculation task and posting the closing year records along with the counter balance entries Financial result.

The Microsoft Dynamics NAV system does not require the closing of the financial year, however, the execution of closing procedures ensures that the displayed balances (eg in the Chart of Accounts) present results only for the open year (years).

Thanks to this functionality, the user has the option of entering replacement descriptions of warehouse stocks and printing reports in many languages (for example, invoices – in the language of the recipient). Descriptions in a given language can be combined with a suitable buyer, which is especially useful in the case of foreign sales.

In the realities of the global economy, many companies face the need to report and conduct transactions using multiple currencies. Microsoft Dynamics NAV provides a feature that allows companies to correctly record and quote transactions in multiple currencies, and also allows you to view the General Ledger results in an additional reporting currency, as well as consolidating the results of companies using different currencies.

Adjustment of exchange rates (balance sheet valuation) is the conversion of open settlements of buyers and suppliers and cash accumulated at the register and in bank accounts according to one selected exchange rate. The correction is carried out at least once a year. In addition, the functionality has the ability to run the script Adjust exchange rates separately for buyers, suppliers and bank accounts, post entries in detail or summed by currency, as a result of running the script Adjusting exchange rates and running the script Adjusting exchange rates in test mode, only as simulations (without posting).

The balance sheet and the profit and loss account are financial statements required by Polish legislation. Their construction is strictly defined by the act, therefore the ERP system should enable the implementation of published report templates. The balance sheet and the profit and loss account are tools facilitating the preparation of statutory reports. It is possible to define many versions of balance sheet and profit and loss account statements.

Functionality Document numbering templates allow you to define different sets of numbering series for documents of a specific type. In addition, other common parameters can be assigned to a given template, e.g. a report that replaces the first report from assigned to a given document type in standard functionality. As part of this functionality, it is possible to create numbering templates for sales, purchase and offset documents.