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Turning on Reporting Ledgers in Dynamics GP

Reporting ledgers were introduced with the release of Dynamics GP 2010. Reporting Ledgers provide 3 financial ledgers, the general ledger (BASE) and two optional reporting ledgers. This allows for the separation of financial adjustments (Statutory adjustments, Eliminations, Transfer pricing, etc.) from the general ledger.

Organizations would add separate accounts or maintain separate company databases to separate management reports from published financial statements for these types of adjustments before reporting ledgers.

Elimination and Adjusting Entries for Consolidation

Elimination and Adjusting entries are never posted to the General Ledger but are required to report on the consolidated financial results of an organization and its subsidiaries. These entries are prepared and presented in the form of a journal entry often with supporting documentation. Managing these entries off the GL can be time consuming and a challenge to provide audit trails and internal controls.

Our white paper, “Eliminations and Adjustments using Reporting Ledgers”, provides detail design concepts and setup instructions to utilize reporting ledgers to manage Eliminations and Adjustments. All reporting ledgers will be used to post Eliminations and Adjustments for Subsidiary with different fiscal periods, options for Transfer Pricing entries, and Intercompany transactions. A subsidiary that used a different chart-of-accounts is included, however, this does not require the use of Reporting Ledgers.

The examples used in this white paper are for the purpose of demonstrating how to use reporting ledgers. There are many types of Eliminations and Adjustments, however, most can be accomplished using similar techniques in Dynamics GP and Management Reporter.

Turning On Reporting Ledgers

You have the option of using Reporting Ledgers in each company. Only turn this feature on if you need to post entries that do not belong in the General Ledger. NOTE: Once you turn on this feature you will need to identify which ledger you want used in Management Reporter for each report.

Tools>>Setup>>Financial>>General Ledger

Summary

Managing elimination entries for multiple subsidiaries requires more than just a link to an Excel spreadsheet. With the increased focus on audit trails and internal controls for SOX compliance, Dynamics GP’s addition of Reporting Ledgers provides the needed controls for Consolidation Accounting.

Our white paper, “Eliminations and Adjustments using Reporting Ledgers”, is intended for Accounting and Financial users and consultants that are responsible for producing consolidated financial statements in Dynamics GP and Management Reporter.

Request a free copy “Eliminations and Adjustments using Reporting Ledgers in Microsoft Dynamics GP® and Management Reporter” at http://unifiedbiz.com/eliminations-gp-mr/