Dynamics 365 Finance
Category
Mar 25, 2024
Published date
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AI Summary
- This article discusses the importance of determining the overall process for migrating financial opening balances in Dynamics 365 Finance.
- The two most common accounting principles used to determine the posting logic of the balances are the "9-Accounts" approach and the "Net-Zero" approach.
- The "9-Accounts" approach involves using 9-Accounts as offset accounts for imported transactions, which are accounts used during the implementation of Dynamics 365 Finance and then suspended afterwards.
- The benefits of the "9-Accounts" approach include easy reconciliation with the legacy Balance Sheet and reporting on the 9 Accounts as documentation for auditors. However, it requires creating new accounts only for one purpose and considering the account structure for the 9 accounts.
- The "Net Zero" approach, more commonly used in North America, involves using the same account as the subledger module would post to as the offset account. This approach is recommended for companies that have trouble with balancing ledgers and have tight go-live schedules.
- The benefits of the "Net Zero" approach include the ability to easily make adjustments of GL and SL through the GL and the opportunity for further insights if known.
- The disadvantages of the "Net Zero" approach include the need to identify offset accounts by cross-checking posting profiles and a more complicated template creation process.
- It is important to discuss with your team their preferences and come to an agreement before deciding on an approach for migrating financial opening balances.
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