General Ledger

Dynamics 365 Business Central – How to cancel a full month of Depreciation in the Fixed Assets module

Gavin WhittakerLeave a comment

Introduction

I recently encountered an issue where the fixed assets depreciation had been ran incorrectly and therefore it all had to be cancelled.

In this post, I’ll show a couple of ways you can cancel all depreciation in a given time frame or filter. These include using the “Cancel Entries” on the “FA Ledger Entries” page, and my preferred option, the “Cancel FA Entries” function on the Deprecation Book.

Scenario

In this scenario, I’ve posted depreciation for the month of August, impacting more than 300 assets. However, I’ve identified an error and now wish to cancel all depreciation for August.

There are a couple of approaches I could use to address this issue.

Option 1:- Multi select in the FA Ledger Entries Page

One way I could resolve this is to go the “FA Ledger Entries” page and filter for the entries I wish to cancel and click “Cancel Entries”.

For example, below I’ve filtered on the “AUGUSTDEPREC” document number and then selected all the entries and clicked “Cancel Entries”.

Although this would create me a Fixed Assets G/L Journal to cancel the entries, it wouldn’t automatically populate the balancing account. I’d then have to open the “Fixed Asset G/L Journal” page and highlight all the rows and click “Insert FA Bal Account”

I could then post the journal which would cancel the entries.

Option 2 – Use “Cancel FA Ledger Entries” on the Depreciation Book

I find that another, more efficient way of doing this, would be to use the “Cancel FA Ledger Entries” function on the Depreciation Book.

To do this search “Depreciation Book”, select the relevant Depreciation Book, and then click to edit it. Next, select the option “Actions > Functions > Cancel FA Ledger Entries”

This will open a dialog box with various options for cancelling different types of Fixed Assets transactions including Depreciation.

I’ll therefore choose the options below and click OK.

Using this method, I’m sure to cancel all depreciation entries within the specified date range. Additionally, it allows me to include the balancing account and specify a document date, all conveniently on a single page.

This will then create the relevant Fixed Asset G/L Journal I can post to cancel the entries

Final Note

When you choose to “Cancel” entries although all entries are reversed, including GL entries, they don’t appear in the “FA Ledger Entries” page. (this includes the FA Ledger Entry you cancelled). They can be viewed via the “FA Error Ledger Entries” page. This is by design as the entries have been cancelled.

Conclusion

There are various methods available for cancelling Fixed Assets entries. However, when I need to cancel multiple entries simultaneously, such as monthly depreciation, I prefer using the “Cancel FA Ledger Entries” page. When cancelling individual entries, I find the “Cancel FA Entries” option on the “FA Ledger Entries” page to be more convenient.

Thanks for reading!

Dynamics 365 Business Central – How to selectively post part of a Journal batch using filters

Gavin WhittakerLeave a comment

Introduction

There might be situations when you only want to post part of a Journal batch, rather than the whole batch. For example, if you have several monthly adjustment journals in one batch, you might only want to post a selection of the entries, rather than the whole batch. In this post I’ll walk through how this can be achieved using filters.

Scenario

Let’s say you have a month end journal batch that contains several monthly adjustments you are working on. Now you just want to post a selection of the entries in the of the journal batch, and continue working on the rest.

As there is only a “Post” option on the menu bar, its not obvious how you can achieve this, however this can be done using filtering on the journal lines.

Filtering in a Journal

Below is a journal batch that contains a depreciation entry, an accrual and a journal for bad debt that hasn’t yet been finalised.

In this scenario, I only want to post the depreciation entry, and continue working on the other journals in the batch. To do this I can click the “Filter” option and filter the lines to my depreciation journal as per below.

Now, when I click “Post”, Business Central honours the filter and only posts what is currently filtered. As you can see below only two GL entries have been created. (and in fact the journal wouldn’t have posted without the filter as it didn’t fully balance)

Conclusion

Its common to advise users to create a journal batch per task in Business Central. For example, a journal batch for Adjustments, Accruals etc however you can use one batch and use filters to post just what you need.

Thanks for reading!

Enjoyed this post? Subscribe below

Need help with Business Central? Contact me

Dynamics 365 Business Central – How I post Opening Balances for Goods Received Not Invoiced (Expected Costs) in Business Central

Gavin Whittaker3 Comments

Introduction

A key process in any new Business Central implementation is posting and reconciling the opening balances.

While some opening balances, such as those in the General Ledger, Sales Ledger, and Purchase Ledger, are straightforward, others, like Fixed Assets and Goods Received Not Invoiced (GRNI), present unique challenges. (I’ve written about Fixed Assets opening balances here)

In this post I’ll go through the problem goods received not invoiced poses, and how I post the opening balances for Goods Received Not Invoiced (expected costs) in Business Central.

The Scenario

When going LIVE with Business Central it’s possible they’ll be a value on the Goods Received Not Invoiced (GRNI) general ledger account on the opening trial balance. This balance typically consists of pending Purchase Orders for Inventory that have been received but not yet invoiced.

For instance, a Purchase Order for 1000 units at £5 per unit, though received, remains un-invoiced, resulting in a credit balance of £5000 on the GRNI General Ledger Account (referred to as the “Inventory Interim Accrual Account” in Business Central).

As Inventory opening balances are usually brought in separately its usually not possible to enter those Purchase Orders manually in Business Central, or we would double count the Inventory value, therefore ideally we need a method to record the “in-flight” purchase order and also a way to “draw down” the existing balance on the GRNI account when the Vendor Invoice does arrive.

There are a couple of ways you can deal with this which I’ll outline below.

Solution 1 – Create Purchase Orders using a G/L Account

One approach involves creating a Purchase Order with a line item directed to the GRNI General Ledger Account for each pending Purchase Order. Using the earlier example, an in-flight purchase order for 1000 units at a unit cost of £5 would result in a credit balance of £5000 on the GRNI General Ledger account.

Therefore you’d create a Purchase Order as per below to record this in Business Central:

Then, when the Vendor Invoice for the goods arrives, you can invoice this Purchase Order which would Debit the Goods Received Not Invoiced account leaving a zero balance on the GRNI account.

Solution 2 – Create a Purchase Invoice using a G/L Account

Alternatively, you can bypass creating Purchase Orders and directly raise a Purchase Invoice against the GRNI account when the vendor invoice is received. Posting this Purchase Invoice would debit the GRNI account, again leaving a zero balance.

For example when the Vendor Invoice arrived you would raise and post this as per below

Other Considerations

In both scenario’s I find it best to create a separate GRNI account for the existing opening balance and have a new GRNI account for any GRNI (Expected Costs) postings when Purchase Orders are received in Business Central when the system goes LIVE. This separation makes reconciliation easier and you can also monitor the “drawing down” of the original GRNI balance separately from expected cost entries made from Purchase Orders received in Business Central.

Conclusion

This highlights a couple of methods that can be used to post opening balances for Goods Received Not Invoiced in Business Central.

While both approaches have their advantages, I do edge towards creating Purchase Orders with a line item pointing to a dedicated GRNI account for each in flight Purchase Order. This method helps with reconciliation both when the opening balances are posted and after go live. (you can monitor the balance in the GRNI account to the number of unposted Purchase Orders with G/L accounts pointing at the GRNI account).

Thanks for reading!

Need help with Business Central? You can subscribe or contact me below.

Go back

Your message has been sent