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.
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.
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.
http://cvakumar.com/msdynamics/2010/05/16/posting-levels-in-dynamics-gp-a-review/
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