Hi gurus
Suppose i have a purchase order which has already been invoiced, the transactions happened on the PO like below:
what my client actually want is :
For a specific main account, just like main account 140302, all the transactions should only happen on one side “credit” or “debit”.
suppose 140302 happen on debit and 220202 happened on credit side.
Is it possible for me to achieve this requirement by configuring the main account setting “DB/CR requirement” ?
many thanks.
So what is the problem do you face when you specify the Dr/Cr requirement?
On the main account 140302 specify DB/CR requirement= Debit and for main account 220202 specify DB/CR requirement= Credit. To test if system is validating it correctly, make a General Journal entry with credit to 140302 or debit to 220202 and try to validate it.
What the client wants:
Physical Voucher:
140302 Credit: 30.
Financial Voucher:
140302 Credit: -30
no sure where i can check the value actually it posted.
Changing anything Db/Cr requirement is not a solution here. System will not recognize - debits as credits.
I believe this feature is not available in AX and customizing anything to posting routine is not at all suggested.
The negative debits for credits are used in correction only, generally you can use that on general journal. But in case of PO, it is reversing the packing slip entries and thats the reason it is posting debits and credits on invoicing.
Is this a local GAAP requirement, then something needs to be looked for.
Pranav…
Agree with Pranav as usual
The solution you are looking for: Does it conform to the pictorial representation below? You basically want “-30” against the credit side instead of “30” against the debit side when the ‘Financial Voucher’ is posted? If yes, please understand it doesn’t work like this in Accounting. (Long story). Besides, I think the confusion is only because you see the results of the posting in AX (30 and -30) on left-hand side and right-hand side (of “Amount” column and you assume its debit and credit. Correct me if I am wrong, AX doesn’t ACTUALLY say “debit” and “credit”. You just assume it is and want both entries on the right hand side of the Amount column? No use, is there?
And the second point is, if the client says main accounts should only have debits OR credits, he/she may well be right. For example, Stock Account, predominantly, should have debits on purchases (I say predominantly and NOT always because goods reversal is possible). So in such cases, if you DO NOT want to have “Plus” and “Minus” being posted all the time behind Financial and Physical Vouchers, use an ‘Inventory Control’ account of some sort to ‘temporarily’ hold stock until the full transaction is complete. In Accounting world, it is perfectly alright to have “plus” and “minus” against Control Accounts. Just not against Asset or Liability Accounts.
i try to explain the requirements from the client as below: (since i’m not financial expert, please correct me if i made any mistake)
we can reverse the physical voucher by two approaches.
Method 1:
even though the balance is correct(zero) , but The problem for this one is the accrual value for Credit or Debit is wrong(72).
Method 2:
if we use the negative value to reverse the physical voucher, both balance and accrual value are all zero.
this is what the client wants and not sure if the AX doing it in this way.
many thanks.
When you do a reversal you want it to be reversed! Why not take a purchase invoice and create a credit note from it and look at the transactions generated.
Hi Adam,
This is the AX system behavior, once we post the invoice for a purchase order, it will reverse the physical voucher posted by the product receipt.
i just want to know how the system reverse the “Product Receipt” when we post the “invoice”.
To me, this seems to be more of an issue understanding Accounting principles as opposed to AX behaviour. The framework behind SAP, PeopleSoft and AX is similar & they all trigger postings the way you just described.
You say “The problem for this one is the accrual value for Credit or Debit is wrong(72)”.
“Accrual” has a specific meaning in accounting. Leaving that aside, I think you mean to say the sum total of debits or credits is 72 which is wrong? This 72 means nothing for the purpose of accounting or reporting. In large organisations, total of debits or credits run into 15 digit numbers. Batch postings may go wrong - 15000 debit lines are posted incorrectly and is ‘fixed’ by initiating a REVERSAL by posting 15000 credit lines in the same account. Gist is, nobody does a summary by debits or credits. Irrelevant. What matters is the RESIDUAL / SUM TOTAL OF BALANCE IN ANY ONE LEDGER / NOMINAL ACCOUNT.
Same issue but tackling from a different angle: 72 is NOT “accrual”. This is like saying 1+1 = 11 because they are next to each other. You cannot add 36 from 140302 and 36 from 220202 and say 72 is “accrual”. Concept of Accrual is very simple. Monies parked in a ledger account for an impending expense. Please give me the description / definitions of the 2 accounts. More than likely, the account starting with 1* is an asset. The account starting with 2* is a liability account (more specifically an accrual account). Applying this logic, 220202 (accrual account) has 36 credit from physical voucher and 36 debit from financial voucher. So you say “accrual” is zero after adding up values from WITHIN 1 ACCOUNT. All I am trying to say is you need to view balances at Account Level and NOT at ‘total of debits’ or ‘total or credits’ level.
In this representation you summed the debits and credits separately and you are trying to read them as debit 72 and credit 72. But, when you look at the system perspective…to check the total at the account level 140302(example), you would click the balance button to check the total balance at the account.
The result you are going to see is “0” since it sums up both the debits and credits. So, in my view you should not try summing up the values in two different vouchers. Instead, you show the customer the end result from the Account side.
Hi Prometheus, Santosh
I can understand what you mean, i know that the summarized “Credit” or “Debit” are useless in your country, but in China, they are really has negative impact to the report sometimes.
We have two types of reversing which called “Red Reverse”, “Blue Reverse”. (hopefully my translation are correct).
So is there any where that i can check the balance for a specific main account ? if so , i can know how the system reverse the “Physical Post”, if the system use negative value to reverse the transaction happened before, the balance should be Zero.
Thanks for your patient and help. Please don’t be confused. (I’m a newbie).