About Ledger Accruals in Ax 2012

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.

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.


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.