Concept of Transfer Opening Balances ( Balance sheet balances)

Dynamics 365 for Finance and Operations/AX User Forum
#1

Hi All ,

what is the concept of Transfer the opening balances functionality in Axapta ?

(Generally we will transfer the P&L - loss or profit to Retain earnings account ) .

But why we need to transfer the Balance sheet balances .

Please explain in detail.

#2

You must always transfer the balance sheet - these are your assets and liabilitiesso basically:

  • fixed assets - long-term possessions

  • current assets - short-term possessions

  • current liabilities - what the business owes and must repay in the short term

  • long-term liabilities - including owner’s or shareholders’ capital

How do you run your full accounts without these?

Transfer them in as an open GL journal and post it.

#3

Thanks Adam,

why i am asking is NAV does not have the above mentioned functionality , System would automatically take the Current year closing balnces is next year opening balances based on the date period.

Why AX has this functionality ? That is what i would like to know ?

Please share your experience.

#4

The concept is the same in NAV.

Are you talking about loading opening balances at the start of the system or something else? At the year end the balance sheet account values simply roll over exactly as they do in NAV.

#5

It seems to be this post helpful will helpful to me also.

#6

Thanks Adam,

i am talking about the year end balances , As far as i know , in the NAV when we run the Close income statement batch job , system will pass the entries to P& L accounts to make the value zero and Transfer the amount ( Profit or loss) to Retained earnings account of Balance sheet .

I have not noticed that balance sheet account balances would not transfer to next accounting period automatically in NAV , where that functionality is availble in AX.

Please correct me if i am wrong .

#7

Pioneers please help me.

#8

Would you rephrase this because it makes no sense. You did not notice the transfer of the balance accounts in NAV and you are looking for the same functionality to not notice in AX. Just do not notice it [:D]

Year end close moves the balances in AX.

#9

Hi there, suppose we start off year 2015 fresh (assuming our open inventory balance is zero and retained earnings is $10k and owners is injecting capital of $50k. How could we reflect this at the start of 2015 through GL entry. I would like to get your thoughts.

Retained Earnings Cr and P/L a/c Dr. since retained earnings comes from P/L - does that mean, we have gather all P/L entries of 2014?

Owners capital Cr and Cash Dr. {this seems to be ok}