About Ledger Accruals in Ax 2012

Finance and Operations/AX User Forum
1

Hi, I tried to perform a ledger accrual transaction (Prepaid Insurance) in Ax 2012. But I’m not sure if I have done it right or not.

In the Ledger Accrual scheme, I chose:

Insurance Expense account → Debit

Prepaid Insurance account → Credit

In the Journal line, I entered the account Prepaid Insurance. I then went to Functions → Ledger Accruals. Entered the offset account (Bank) and posted the line.

When I checked in the Inquiries-> Voucher, this is what showed:

Insurance Expense account 1200 Debit

Bank account 1200 Credit

I then clicked on Transaction origin, and the transactions were as displayed below:

Bank account -1200

Insurance account 1200

Bank -1200

Prepaid Insurance 133.33

Insurance Expense -133.33

Prepaid Insurance 133.33

Insurance Expense -133.33

.

.

so on till end of the year (Total 9 transactions, from April to December)

Here, I thought the Prepaid Insurance would be credited each month and Insurance Expense debited. But, it’s happening the other way around.

Can someone please help me understand this? Thanks in advance.

2

Hi Sandeep,

You can check the transaction that will be posted in the accrual form itself. There is a transaction button which shows the transaction that will be posted.

Ideally the prepaid expense should be credited to expense a/c every month. Check the ledger setting on the scheme, probably it’s posting the opposite in your case.

Pranav…

3

Hi Pranav,

Thank you for your reply.

In the accrual scheme, Insurance expense is set as debit and Prepaid insurance is set as credit.

And when I checked in transactions which shows the transaction to be posted, Prepaid insurance is debited and Insurance expense is credited every month.

But when I checked the voucher transactions, Insurance expense is debited and Bank is credited as it should be. I have also tried different possibilities which are giving wrong results. I still don’t understand if I’m doing something wrong.