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Friday, July 14, 2017

Distributing Analytical Accounting Details on Sales Transaction Entry ( Cost of Goods Sold and Sales/Reveue )

One of the complex requirements is generate a profit and loss statement per sales channel, which requires distributing all revenue, cost and expenses account per Sales Channel, in order to be able to generate a profit and loss statement with Analytical Accounting Dimension details from the Management Reporter. 

Analytical Accounting - Expenses

Most expenses can be distributed directly, either from the payable, bank or general ledger. It seems to be a straight forward process as you just need to fill out the expenses on the distribution and fill out the associated sales channel directly. 

Analytical Accounting - Revenue and Cost

Distributing Analytical Accounting on the sales account seems to be straight forward process as well, once the Sales Invoice is created, you can easily go to the distribution and fill out the associated AA dimension (sales channel in this example). 

The bottle neck of this process is the cost accounts, since Inventory/ COGS journal is usually determined after posting the sales transaction and depending on the inventory valuation method (FIFO, LIFO or average). 

For this case specifically, the analytical accounting provides an essential feature which allows you to distribute the Inventory / COGS analytical details before posting the sales transaction entry. 

On the sales transaction entry window, Click on "AA" button on the ribbon of the window to open the Analytical Sales Transaction window

AA - Sales Transaction E

On the Analytical Sales Transaction entry window, there is a button to switch between the Inventory/COGS journal and the main Journal, illustrated below:

Now you can fill out the distribution related to the COGS, and switch back to the Sales/Revenue distribution to fill out the associated analytical accounting dimension as well. 

Best Regards, 
Mahmoud M. AlSaadi

Rule of Thumb | Analytical Accounting Account Access

It is well known that the General Ledger in Dynamics GP has something called "Account Level Security" in which the users of the systems are granted access per account. For instance, the AR Accountant could have limited access to only receivables accounts, it is not widely used though it might be highly important in specific cases. 

On the other hand, Analytical Accounting provides a similar feature which is called "Account Access" in which each Dimension Code could have access to specific GL Accounts. Lets take the following example in order to illustrate how Account Access works in the analytical accounting module of Dynamics GP. 

Suppose that we have a transaction dimension for Projects, under which several dimension codes are configured to manage:
  • Project A 
  • Project B
Usually, all expenses accounts are assigned to the dimension "Project" in order to capture every expense in every project, and report it accordingly. In this essence, any account which main segment starts with (6****) is assigned to the transaction dimension code. 

Lets take thing too far, suppose that there is a critical business requirement which addresses the fact that project A expenses are limited to specific sub-set of accounts under the expenses category, in other words, not all expenses accounts are allowed to be distributed on (Project A). For instance, there is no hospitality, transportation, internet or accomodation expenses. In such cases, the Account Access feature of the analytical accounting module provides an added value, by limiting the account access for Project A on specific accounts as per the requirements above. 

In order to setup account access, go to Cards > Financial > Analytical Accounting > Account Access
You need to fill out two things, the required transaction dimension and dimension code. Additionally, click on "Select Accounts" under account access, and then choose the range of accounts which you need to grant access for this specific dimension code. 

                 Account Access Setup
One the account access is configured for the Analytical Accounting, restrictions will be applied on every single entry which is required to have AA details. When an account that is not assigned to a specific dimension is distributed, the system will throw a warning message preventing the transaction from posting as illustrated below:

Error Message: 

 "This account does not have access to Transaction Dimension Code Project A"

Account Access Error in Analytical Accounting

Best Regards, 
Mahmoud M. AlSaadi