AX2012_ENUS_FINI_02

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CHART OF ACCOUNTS SETUP
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  Chapter 2: Chart of Accounts Setup 2-1 CHAPTER 2: CHART OF ACCOUNTS SETUP Objectives The objectives are: ã   Create, edit, close, or delete Main account categories ã   Create a new account in the Chart of Accounts (COA) ã   Define main account information ã   Define administration information for the main chart of accounts ã   Define setup information for the main chart of accounts ã   Set up account structures ã   Set up advanced rules ã   Create a ledger ã   Set up accounts for automatic transactions ã   View inquiries and reports related to the Chart of Accounts Introduction A Chart of Accounts is a set of main accounts tracked by Microsoft Dynamics AX ® . It captures financial information to make good financial decisions. Each account is assigned an account number as a unique identifier. Each main account contains the account structures used by the chart of accounts to define the valid combinations of main accounts and financial dimension values. The chart of accounts is shared and is a list of main accounts and account structures that define a chart of accounts in use by one or more ledgers. Additionally, different allocation terms can be set up for an account to distribute the amount to several accounts and account-dimension combinations, and system accounts help users handle automatic postings. The Chart of Accounts Setup course also shows all the reports and inquiries related to the Chart of Accounts.  Chapter 2: Chart of Accounts Setup 2-2 Main Account Categories Main account categories can be used to better classify a general ledger account. Use main account categories primarily for grouping or selection of ledger accounts for Cubes and Key Performance Indicators (KPI's). By default, over fifty ledger account categories are provided. Scenario Phyllis, the Accounting Manager, wants to include the Current Ratio on the Short-term solvency KPI report. Current Ratio is calculated by dividing a company’s current assets by current liabilities. Current assets typically consist of cash, cash equivalents, accounts receivable, inventory, and marketable securities. Current Liabilities consist of any liabilities that are payable within one year. The following table shows the types of accounts defined in Contoso Entertainment USA: Ledger account Account name 110100 Cash 130000 Accounts receivable 140000 Inventory 170000 Fixed Assets To derive the Current Asset value, Phyllis must sum the values of the Cash, Accounts receivable, and Inventory accounts. Fixed Assets are not considered current assets. To perform this calculation, Phyllis uses the Main account category  field. Main accounts later added to the chart of accounts will also use the Main account category  to automatically be included in existing calculations. Procedure: Create Main Account Categories Perform the following steps to create a General Ledger Main Account category: 1.   To access the  Main account categories  form, click General Ledger , click Setup , click Main accounts , and then click Main   account categories . 2.   Click the New  button to create a new record. 3.   Enter a unique name for the Main account category  and a Description .  Chapter 2: Chart of Accounts Setup 2-3 4.   Select a Main account type  to associate with the account category. The purpose of selecting a Main account type  is to reduce the lookup of available  Main account categories  when you create a new Main account within the Chart of accounts form. 5.   To link an account category to a main account, click the Link main accounts  button. Or, link a Main account category  to an account from the Main account   details  form. For more information, refer to Create a New Account - Main Account Category. FIGURE 2.1 MAIN ACCOUNT CATEGORIES FORM Edit Main Account Categories The Main account category , Description , and Main account Type  assignment values can be changed at any time for user-defined and default Main Account Categories. Close Main Account Categories To inactivate a main account category, including any of the default main account categories, select the Closed  check box in the  Main account categories  form. If you try to close a  Main account category  that is already linked to a main account, a warning message listing the linked main accounts is displayed. Select to continue or cancel. After a Main account category  is closed, it cannot be linked to main accounts.  Chapter 2: Chart of Accounts Setup 2-4 Delete Main Account Categories A user-defined Main account category  can be deleted, as long as it is not assigned for use with Purchase Requisitions in the Accounts Payable Parameters form.  None of the default Ledger account categories can be deleted. Chart of Accounts The Chart of Accounts (COA) is the structured list of an organization's general ledger accounts. The COA will provide the main accounts for the COA plus the account structures in use for the COA. These structures determine the valid main account and financial dimension value combinations for the chart. Use the COA to do the following: ã   Create and maintain main accounts ã   Set standard parameters ã   Define the terms of allocation Plan the Chart of Accounts To create the COA, users should list accounts that group well together and group kinds of revenues, costs, and balance accounts. Before you create a company's Chart of Accounts, consider the following: ã   What degree of specification is needed ã   How the Chart of Accounts must be structured ã   If external accountants offered any suggestions about the structure of the Chart of Accounts Make sure that there is sufficient space so that in the future, additional main accounts can be created between the existing main accounts. Decide whether operating accounts must come before balance accounts or the other way around.
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