Dynamics 365 (and AX2012) – Fund Accounting by Way of Posting Definitions

Let’s start by revisiting the foundational Fund Accounting Tips, where you can find information regarding setting up Funds, financial dimensions, and the Ledger.  The setup described in the previous post enables inter-unit accounting. 

There is another option to select if it meets the business requirements and is worth considering, especially if multiple dimensions are required to balance. 

Balancing financial dimension

Instead of selecting a Financial dimension in the Ledger (parameters) to balance, navigate to the Financial dimension form (General ledger > Chart of accounts > Dimensions > Financial dimensions).  From there, select the financial dimension in need of balancing.

For that dimension or dimensions, enable the option ‘Require the dimension to be balanced’.

Once the dimension(s) to be balanced are determined, the posting definitions must be defined as described in the next section.

DO NOT enable the Ledger setting for Balancing the financial dimension.  Doing so will enable Interunit accounting instead of Posting definitions.

Posting Definition

In addition to the Balancing financial dimension being enabled, the posting definitions must be defined.  The posting definitions determine the necessary accounting entries be made.  These entries are validated to ensure they balance by financial dimension when a dimension is required to balance.  An error message will advise if the entries do not balance by financial dimension and posting will not occur.

To define posting definitions, navigate to General Ledger > Posting setup > Posting definitions.

Multiple posting definitions may be required to accomplish the business need.  Posting definitions will be associated with transactions in the next step, so thinking of what is needed by transaction type, will make the task easier.  Documenting use cases in detail, to then use in testing of the completed configuration, is a good practice to help ensure all possible combinations and scenarios are covered.

Posting definitions can be expired or updated as needed.  The Match criteria define what basis the system will generate an entry in the voucher.  The Generated entry defines what entries the system will make in the voucher when the criteria established in the Match criteria section are found.  In the example above, if an entry is made to an account in the Manufacturing P&L account structure with the fund dimension value equal to 200, the system must generate an entry to balance in account 200100 and fund 200.  Account 200100 is Accounts Payable in this example. 

Once the definition is created, navigate to  General Ledger > Posting setup > Transaction posting definitions to assign the Posting definition to the proper transaction.

Transaction posting definitions

From the Transaction posting definition form, select the area and transaction type where the posting definition(s) will be used.

Click New.

Define the transaction posting definition for All items, specific items, a group of items, or a category.

Select the Account, group of accounts or All accounts the definition applies to.

And select the appropriate posting definition to use.

Thorough transaction testing should be completed using the posting definitions in a testing environment BEFORE configuring the Production environment is highly recommended.

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