Posting Levels in Dynamics GP – A Review

| 05/16/2010 | 6 Comments

Hi All

I have been getting questions from many of my clients and network on the various levels of postings to the General Ledger accounts that are available in Dynamics GP. Hence I decided to provide some information on the same to all the folks in this community.

The level of posting to the GL accounts is determined from couple of setups working hand in hand in Dynamics GP which I will elaborate below. The initial setup is to define the level of postings for various accounts in the Account Maintenance window from Cards >> Financials >> Accounts as illustrated below.

image        image

We can specify the levels of posting from the various series into the General Ledger module. The various options available for posting levels are

  • Detail
  • Summary

Once this has been setup, we need to define the level of posting for various transactions in various modules in the Posting Setup window from Microsoft Dynamics GP >> Tools >> Setup >> Posting >> Posting as illustrated below.

image

So for the purpose of this case study, I created a couple of receivable invoices with the distributions explained below and saved them into a batch called RECVINV.

Invoice #1

Invoice Number Account Number Type Debit (DR) Credit (CR)
INV0001 000-1200-00 RECV $500 -
INV0001 000-4100-00 SALES - $500

Invoice #2

Invoice Number Account Number Type Debit (DR) Credit (CR)
INV0001 000-1200-00 RECV $700 -
INV0001 000-4100-00 SALES - $700

And I have setup the account 000-1200-00 to post at a Summary Level in the Sales Series in the Account Maintenance window, whereas I have setup the account 000-4100-00 to post in detail in the Sales Series in the Account Maintenance window.

Now, in the Posting Setup window, if we select the option to create one journal entry per transaction, posting will always be done at a detailed level (irrespective of the setting specified in the Account Maintenance window) (i.e.) There will be a one-to-one match between the distribution lines in the journal entry and the distribution that we had noted in the transaction posted in the sub ledgers.

So when the above batch RECVINV is posted in the Receivables module, there will be 2 journal entries created with the distributions explained below.

Journal Entry #1

Journal Entry Account Number Debit (DR) Credit (CR)
12345 000-1200-00 $500 -
12345 000-4100-00 - $500

Journal Entry #2

Journal Entry Account Number Debit (DR) Credit (CR)
12346 000-1200-00 $700 -
12346 000-4100-00 - $700

However in the above window, if we specify the option to create a journal entry per batch, we have two levels of roll ups that are available when journal entries are created when the sub ledger transactions are posted.

If the “Use Account Settings” option is unchecked, then when a batch of transactions is posted from the sub ledger module, the system creates one journal entry for all transactions posted in the sub ledger batch. However, there is no roll-up done at the account level, even though the accounts have been setup to post at summary level in the Account Maintenance window.

So in the same case study example above, if the batch was posted in the Receivables module, there will be one journal entry created with the distributions illustrated below.

Journal Entry #1

Journal Entry Account Number Debit (DR) Credit (CR)
12345 000-1200-00 $500 -
12345 000-4100-00 - $500
12345 000-1200-00 $700 -
12345 000-4100-00 - $700

If the “Use Account Settings” option is checked, then when a batch of transactions is posted from the sub ledger module, the system creates one journal entry for all transactions posted in the sub ledger batch and the distribution amounts are rolled based on the posting levels for the accounts that are defined in the Account Maintenance window.

So in the same case study example above, if the batch was posted in the Receivables module, there will be one journal entry created with the distributions illustrated below.

Journal Entry #1

Journal Entry Account Number Debit (DR) Credit (CR)
12345 000-1200-00 $1200 -
12345 000-4100-00 - $500
12345 000-4100-00 - $700

Note: Keep in mind that the various levels of postings will also be in effect only when we perform a batch posting in the sub ledger. If the posting is done at a transaction level, the system will always post in detail to the General Ledger (irrespective if the settings in the Account Maintenance window and the Posting Setup window for the specific sub ledger transaction).

Hope this article provides some insight into the General Ledger posting levels that are available in Dynamics GP.

Until next post…

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)

Tags: , , , , ,

Category: Dynamics, General Ledger, Great Plains

About the Author ()

  • http://www.premierfoods.com Rhys

    I am trying to find out what the status number is for a batch that is “Posting in Progress”??

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • veeyeskay

    Thanks for your valuable comments Clark. :) Much appreciated.

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • http://www.reporting-central.com Clark A. Patterson

    Posting in Summary – – not one of my favorite options with maybe an occasional exception for Payroll.
    HISTORY – why this option even exists? Many years ago, hard drive space was limited by cost and to some extent, technology especially when dealing with the old BTrieve database (P-SQL). To accommodate high volume transactions, the summary or batch posting entries help avoid problems with these limitations.
    Today – these limitations do not exist. Disk space is cheap and plentiful. Microsoft SQL can handle millions of transactions a month without blinking. Printing of Posting Journals is a waste of paper and shouldn’t even be happening (print to file to archive if required and Dynamics GP has reprint posting journals). There is a summary posting report that is useful for a high level review if that is the level of control desired.
    Benefits of posting in detail – One, you have all of the detail! Two, because you have all of the detail, your ability to slice & dice with drill downs is fully intact. Three, if there is are mistakes in the distributions – it is buried. This can be as simple as to the wrong account or worse, incorrect use of a control account.
    The latter is the most relevant for me working with our product, The Closer. Posting in summary can make reconciling the sub ledgers to the GL very difficult. We have customized our code for a few clients to clean up past problems, but they have been very eager to change the posting settings going forward.
    I could go on to counter every argument that I have heard over the last 10 years or so, but so far – the only plausible argument I have given credence to is Payroll, to hide specific salary information.

    VA:F [1.9.22_1171]
    Rating: 0.0/5 (0 votes cast)
    VA:F [1.9.22_1171]
    Rating: 0 (from 0 votes)
  • Pingback: Posting Levels in Dynamics GP - DynamicAccounting.net()