Microsoft Dynamics 365 General Ledger Module Part # 1

Microsoft Dynamics 365

General Ledger Module Part # 1

Topics Covered in this part are given below:

1. Currency and Exchange Rate Setup,
2. Currency Setup,
3. Enable a Currency for Currency Conversion.
4. Create Exchange Rate Types.
5. Create Revaluation Accounts.

General Ledger:

A general ledger is a formal document that contains a company's accounting data and financial transactions. The early steps entail establishing the chart of accounts, fiscal calendars, legal entities, and currencies in order to make the general ledger operational. The major accounts and financial dimensions that are allowed inside one or more account structures are listed in the chart of accounts.

Exercise 1.1 Currencies and Exchange Rate Setup.

In order to facilitate the quick consolidation of group accounts, Dynamics D365 mandates the configuration of currency and exchange rates. By enabling precise currency translation and upholding current exchange rates, this step is essential to achieving effective financial consolidation.

Exercise 1.1.1 Currency Setup.

Step 01: Open Microsoft Dynamics 365.

Step 02: Click the General Ledger Module>Currencies>Currencies

Only one currency can represent the Triangulation currency. By default, the EUR currency is selected as the Triangulation currency.

1.1.2 Enable a Currency for Currency Conversion.

Step 01: Open the Microsoft Dynamics 365.

Step 02: Click the General Ledger Module>Currencies>Currencies

Step 03: Select a currency.

Step 04: Select the Conversion check box to enable a currency for conversion.

Step 05: Specify the currency's symbol before or after an amount, in the Prefix or Suffix fields.

1.1.3 Create Exchange Rate Types:

Step 01: Open the Microsoft Dynamics 365.

Step 02: Click the General Ledger Module>Currencies>Exchange Rate Types

Step 03: Click the Budget Exchange rate Type, and then on Manu Bar Click the Exchange Rates.

Step 04: Click New and Set from Currency and To Currency and Conversion Factor and then Add or Remove Exchange Rates.

Step 05: Set from Date and End Date

Step 06: Set Exchange Rate and Exchange value will be automatically calculated.

1.1.4 Create Currency Exchange Rates:

Step 01: Open the Microsoft Dynamics 365

Step 02: Click General Ledger>Currencies>Currency Exchange Rates

Step 03: If a currency code that corresponds to the company currency code of the payment company already exists, go to step 4. Otherwise, click the new button and create a new currency code.

Step 04: Set up exchange rate information for the currency code. This information is used for exchange rate calculations when cross-company payments are settled if the payment currency and the invoice currency are different.

Step 05: Switch to the next invoice company and repeat steps 1 through 3.

Step 06: Switch to each invoice company and print a list of currency rates for each.

Step 07: If any currency rates or types are missing from the payment company, switch back to the payment company and add them.

1.1.5 Create Revaluation Accounts:

Step 01: Open the Microsoft Dynamics 365

Step 02: Click General Ledger>Currencies>Currency Revaluation Accounts.

Step 03: Select the Ledger from the drop-down list.

Step 04: Highlight the Currency in the left-hand navigation pane.

Step 05: Enter the default main accounts that will be used during the process that includes foreign currency revaluation. (These accounts include Realized Gain, Realized Loss, Unrealized Gain, and Unrealized Loss)