Core configuration of the application

3. Setting up the Ledger form In General Ledger and Create new Fiscal calendars

Hello everyone. In this video, we are looking at the ledger form. In general ledger, we will alsolearn the creation of physical calendars and understand the accounting currency, reporting currency, and transaction currency in the application. Alright, let's get into the application now. So to be able to go into the ledgerform, you will have to go to the modules under which go to the general ledger module. Under general ledger, you have this ledger form. So open this up under ledger setup. So before we configure this for our newly created company that is SGPFC, let's take a look at the ledgerconfiguration in the USMF company in the demo data. So here you have certain fields like chart of accounts, fiscal calendar, accounting structure,and the currency set up, all these.So obviously, every piece of information is mandatory here. What we do is first pay some attention towards some other important fields, like the fiscal calendar and the currencies, and later we'll take a look at the chart of accounts. Okay, so if you take a look at the US MF Company,you have the fiscal calendar set to a value called fiscal. So let's just open up this calendar. As a result, fiscal calendar configuration is used to define what the company's fiscal calendar or fiscal year is. So if you take a look at this now,what is the set up for this fiscal calendar? So, for the calendar fiscal, and I'm looking at the year 2020 here, my period is basically starting on Jan 2020 and ending on Dec 31st 2020. So this is my calendar configuration for my USMF company. Similarly, we will need to create a calendar for our newly formed company SGPC and then tag it to the ledger form. All right, so let's get into that. Now, to be able to create the physical calendars, I will be able to go tophysical calendars through the general ledger. I have the same ledger setup and I have the same physical calendar. Okay, so let's open the fiscal calendars. And you see here, I already have some data in this particular form. So this is where I wanted to remind you. If you remember this initial, I was telling you that the data is maintained for each company in the 365 finance and operations, right? But if you take a look at thisSDPC now, before we created any data, you already see some other calendars here, right? Because this calendar form is actually a shared form, meaning that the data that you create in the USMF company's fiscal calendar form will also show up when you open the particular form in the SGPC company. So whatever the records that you create here, they will be shown up by all the legal entities because this is a shared form. So this form is called a shade form. So like this, there are certain forms where the data is shared across the legal entities. And why is it done like this? Let me just take an example here. So I have this MF company in the demodata, and I also have another company called USRT. So this is called CONTESTO entertainment systems, USA. And this is like contoso retail. And this is also established in the US, okay? So, both being US legal entities, these two entities want to follow the same fiscal calendar,which is like January 1 to December 31. So in such cases, instead of you creating the data in two different legal entities separately, why can't we create the configuration as a shared configuration? And then we use the same calendar in both companies. So that is the idea behind configuring this as a shade form or creating this as a shared form by Microsoft, right? So let me give you another example here. Just think about this now. As a result, we have this contoso Singapore. And let us assume that Contoso also wants to open another legal entity in Singapore called "Retail or Contest Electronics Singapore," something like this. So they are both two different entities, but if you look at the operations, obviously they will follow the same fiscal calendar. So the calendar is like April to March, right? So that is from 1 April to 31 March. So in that case, what we do is that we create one single calendar and then we're going to tag the same calendar in both the company's ledger forms, okay? So that is the reason the data in the physical calendar form is shared. And if you're implementing it into any business where they have like ten legal entities or ten subsidiaries, then you might still create a single physical calendar where all of these legal entities are available in one single country and they follow the same physical calendar. In this case, you will create a single physical calendar and use it throughout the company. Let us see, how do we create a new calendar? Now, I click on this new calendar and will give it a name like SG Calendar. Otherwise, I can just call it April to March. And I can also name it SG too. Notify that this is being created for Singapore. And I can put the description here like April to March, something like 1st April to 31st March, 31 il to MarchAnd here I can specify the start of the fiscal year as 1 April to March 30th, start of tAnd you can name this fiscal calendar year as 21. So that anybody can easily understand this, right? And the length of the period that we want So the length of each period is basically what each period should be of what length. So we usually make them one month because that is the easiest way for you to manage the operations. So, for example, after the month is closed, you might want to set this period as on hold and then you'll be able to reopen it if at all it is required. So we don't need to talk about this, setting up the period as on hold and all this right now. But typically, please remember that you will be setting this up for one month as a period. Period length Sorry. So I say create and you can see here a new calendar is created and in this particular calendar, you have myperiods here starting from 1 April to 31st March calendar,And the first period, typically, the system creates that as an opening period, which will usually be like 1 April. And even though the end date is also April 1st, since there is an opening period. And this will be created for the system's purposes, so we don't need to worry about it for now. Under this operation, you see here, you have the start date as 1 April and the end date as 30 April. So like this, you have twelve different periods. Okay? So we created this calendar and a calendar year, okay? So this one is a calendar year and this is our calendar. And if I want to create a new year in the same calendar, I'll have to stay in the same calendar and then click on this new year. When I click on "New Year," then the system can automatically take the periods from my previous calendar year. Like this copy from last year. This is set to S, right? With this configuration, the system can automatically detect, for example, my startup, the fiscal year in the previous year, and then it can get me the same date here. Okay? So, typically, you will leave this copy from the previous fiscal year and then create, okay, so when I create a new fiscal year, you can see here, this is my new fiscal year. I'm sorry, I should have named it Fiscal Years 2021 and 22. And this is just the name, right? So that is fine. I want to show you the theological calendars from the USMF company. Now to understand that shade form concept clearly, So I go to the general ledger and under ledger setup, you see here, I am opening the fiscal calendar year under USMF company. And you see here, my newly created calendar is available here, right? So, making it available to be assigned to any company, this calendar is available here, the newly created calendar. So that is why I call this a shared form. So like this, there are many places,there are many forms where the data is shared across the legal entities, right? So now what I do is I go to thisSGTC company and then I go to the ledger form. I open up the ledger form and go to the clickedit and then click on the fiscal calendar. Choose this newly created calendar. Okay? As I was saying, let's leave this chart of accounts. For now, I'm just filling in a value, which you don't need to be worried about for now. So I have set up my physical calendar here. All right. Now, let's talk quickly about accounting currency. So, being the Singapore company, obviously I would want the accounting to happen in Singapore dollar currency, right? So I can choose the SGT as my currency here and in my reporting currency. I want to keep this as UST for now. In the next video, we will learn in detail about the accountingcurrency, reporting currency, and transaction currency. Thank you so much for watching. I'll see you in the next video.

4. Understand Accounting currency, reporting currency and Transaction currency

In this video we will understand the accounting currency, reporting currency, and transaction currency in detail. Let me take you through Excel to be able to explain the difference between these three currencies. I have the currency as Singapore and the reporting currency is the US dollar. Let's first close these two things. So accounting currency, obviously, as we discussed which currency we want the accounting to take place in, we mentioned account SGD. And what about the reporting currency? So reporting currency is basically an alternative currency in which your transaction values will show up in all the forms. For example, if you have posted a transaction vendor invoice as we were looking at in the previous videos, I'm posting a vendor invoice of let's say 1000 Singapore dollars. Then the same thousand Singapore dollars will also be shown in the reporting currency, which is the US dollar. So for every transaction that we create, we will be in a position to see the transaction in US dollars because my reporting currency is set to US dollars. Not only that, but we have a plethora of reports that will show you the trial balance as well as dimension reports and profit and loss statements. So you have different statements or reports that you'll normally print from the system. And in all the reports, you will be able to see the data in the reporting currency as well. So all the data will be shown in accounting currency and also in trading currency, making it easier for stakeholders. And probably, if you are sharing these reports with your US subsidiary or US parent company, then you will be able to share the reports and they will be able to look at the figures in US dollars. So that is the purpose of reporting currency. And finally, I was talking about transaction currency, right? So while my accounting currency is US dollars, or sorry, Singapore dollars, there is a possibility that I will also be doing some transactions in a non-accounting currency. For example, I will receive an invoice from a vendor who is in India. He will send me the invoice in the INR currency. So I can call this my transaction currency. And this 1000 INR will be accounted in Singapore dollars, but it will also be shown in US dollars because that is my reporting currency. Okay? So to quickly show you one example, what I will do is we have already set up this company now with the accounting currency and reporting currency and this is done. Let's save this and close this. We are done with this. So I will quickly take you to one of the vendors that we created before. So what is that vendor that we created? Accounts payable to all vendors, and let me search for the XYZ company. Okay, so this is my XYZ enterprise, with which we booked some other invoices. If you click on these transactions, you will see the list of transactions posted, right? So this is where you can take a look at this. Here the system will actually show me the amount in the transaction currency. So here's the way that you'll have to read. The transaction currency is the US dollar and the amount is a thousand. So it is like a thousand USD. And this is a field of You can read this field tip. You call this a field tip. You select only focus on the field. Then you will see some information about the field that tells me, like the transaction amount in the accounting currency. So, if you make this transaction in a non-accounting currency, also known as a non-company currency, you will see this value in an accounting currency. So in the current case, our transaction currency and also the accounting currency are both the same, right? So that is the reason you are seeing the same value here. But otherwise, the value will be converted into your accounting currency. And then you will see that value here. And similarly, you have thisamount in reporting currency. As you can see, This is a field. You will be able to expand it just like in Excel. So if you look at this value here, this is the value of it in the reporting currency. Alright, so that's all for this video. Thank you very much for watching.

5. 7. General journal creation and understanding different ways of entering journal

Welcome back, everyone. In this video, we are looking at how to create general journals and we will look at the different ways that transactions can be entered into journals. Let's get started. In one of the previous videos, we looked at how we create invoice journals, right? To record vendor invoices, we used invoice journals. So, similarly, to record certain expenses within the organization, we use general journals. So let's take a quick example. If we incurred expenses like for cleaning purposes,this is how our accounting and revolving are done. Isn't it? Cleaning expenses, credited with $1,000. And if that is paid through the pedicure account, we debit the pedicure account with $1,000. So this is a typical expense that we normally book, right? And these account names will be given an account number in any ERP system. So likewise, even in finance and operations,we call these ledger accounts. And we have a number of accounts like this, right? Now, let us get into the general journals and see how we book this transaction. To be able to go to general journals, I will go to modules and general ledger, journal entries, and general, click on the new button, and take the journal name. As I was mentioning, we will talk about what journal names are later in this course. For the time being, let's take this journal and click on the lines. And if you remember, in the vendor invoice journals,we set this account type to be vendor, right? But now leave this account type to be ledger because we want to record an expense, right? And this is not related to vendors or customers or anything. So it is between the ledger accounts. So select this as the ledger and look at this. Look up. And you have a lot of accounts, right? So instead of searching for it there, let's type pettycash because this is the account that I need. So I'm taking the petty cash account and forgetting about these dimensions for the time being. And I'm putting some description here, cleaningexpenses for the whole office, right? So this is the account that we want to get credited. So that is the reason I'll put the credit value at $1,000. And by the way, since my accounting currency for USMs company is US dollars, by default, the value that I'm entering here is in US dollars, right? So in the offset account, So this is where I can search for the cleaning expenses account. I click the alt-down arrow to look at the accounts and I have my account cleaning expenses. So forget about these dimensions, we'll talk about them later, and save them, you see? So this is the currency that we talked about. So this is how you enter a quick general journal transaction. So if you look at this one, this is how you will have to read it from the left to the right. So this Pedicache account is getting credited while the offset account gets debited, right? This one. So this is how you enter a simple transaction, alright? Once you enter this, just go ahead and post this one. So take a look at these debits and credit totals here. So the total journal debit amount is$1,000 and the credit is also $1,000. So the journal is balancing. So the journal must be a balanced journal and only then will you be able to post this particular journal, okay?Also remember that in finance and operations terminology,we can also call this a voucher. So I will call this a voucher. I mean, this particular transaction can be called a voucher. OK, I will go ahead and post this transaction. So while it is getting posted, let me duplicate this tab and I will go ahead and create another journal. I will take the same journal name and click on the lines. So the same transaction. By the way, you can see that this journal got posted, okay?So I will go to this other duplicatetab and see the same transaction. I can actually flip the account and officer account. So there is another way of entering it, right? So instead of saying something like "my pedicure account should be credited," you can always say that your cleaning expenses account can be selected here and the debit can be entered here. You can also designate the opposite account as your pretty cash account. So that is another way of entering the transaction. So more than that, I wanted to show you another different approach. Because when you go to the customers, you might see them entering the transactions in different ways, right? Or else, during your training, people will probably come up with a lot of different questions. Then to be able to answer them, you should be in a position to know the different ways that you enter so that some of the requirements can be addressed. So here I'm going to select the same cleaning expenses account. So instead of taking the pay cash account this time, I'm taking the cleaning expenses account here. The cleaning expense account should be debited, right? So I got to put a thousand and I'm going to create a new line now. So I did not put the opposite account here intentionally because I'm showing you the other way of entering the same transaction. So I choose the petty cash account here. I just typed petty and I clicked on thislookup to take my petty cash account. And so my petty cash account should get credited, right? So I can enter this $1,000 here. That's it. So this is another way that you can enter the transaction, okay? And one thing that I want you to notice here, when you look at this voucher number, So this number is currently configured to be auto-generated based on the setup. A new number gets generated only when the voucher is balanced. So in this case, the two transactions are two lines that I entered in the journal are now balanced. That is why, when I click "new," I will be given a new voucher number. So a balanced transaction will be assigned a voucher number. Let us assume that we incurred an expense of $500 towards cleaning expenses and another $500 for something else. So in such a case, what I can do is I can set the debit as 500 here and then I can create another line. So here, for example, the other is for travel expenses. Then I'm taking a travel expense account and then putting in another $500. So this way, the credit is from one ledger account while the debit is to two different ledger accounts. So this is yet another method for entering transactions. In our next video, we're going to look at how to create these ledger accounts and also understand the difference between the main account and charge accounts. Thank you very much for watching.

6. 8. Chart of Accounts and Main Accounts

Hello everyone. In this video we will understand the accounts and main accounts. Then we will review the chart of accounts used for different legal entities. Then we will also create a new chart of accounts for your newly created company. In the previous lecture, we looked at how we create journals, right? Then I was explaining to you about the pity cash account and travel expense account, and we also talked about having an account number for all your accounts, right? So we call them ledger accounts, right? In D 365 Finance and Operations terminology, you can also call these main accounts. As a result, themas are commonly referred to as either main accounts or ledger accounts. So they are both one and the same. all right? So these accounts are your main accounts, right? Then what about the chart of accounts? So to be able to explain to you the chart of accounts, I will have to take you through how the creation of main accounts process was designed earlier in the previous versions of Ax D 365 Finance and Operations. So let us take an example here I have two legal entities in possession of demo data. One is Contoso Entertainment Systems USA, which is also called the USMF company. And I do have Contesto Systems retail USA. This is called US RT. So if you look at the chart of accounts or if you look at the main accounts that are needed in this company, I need a Travel Expense Account and I will need accounts payable receivable accounts,the bank account, cleaning expenses account, and all these. And I need many more accounts in this company. I do have this same requirement even in the other company that is a US RT company. So, both being legal entities established in the United States, my requirement for accounts is almost the same. Then what we used to do in the pre-year versions of Finance and Operations, like Ax 2009versions, what we used to do is we used to create these accounts in both companies separately. So I'll have to go to my US MF company and create all these accounts that might be like 100 or 200 different accounts and I will have to create all of them even in the US RT company, right? Even if you are using some sort of data import tool, then you will have to import them into USMFcompany first, and then you might also have to import them into your US RT company, right? So this was obviously a time-consuming process, not only for the first time, but consider this: tomorrow, I'll need another account in both companies, right? Then I will have to create that in the USMF company, and then I will have to create it even in the USRT in the USMF cMicrosoft has brilliantly thought about this and come up with a solution. So this is this chart of accounts concept. So let me take you to the demo data so we can see how this problem is addressed. And how easy is it for you or other businesses to create these charts of accounts in one place while still allowing your various legal entities to share these charts of accounts, right? I'm taking you to the application now, and let's take a look at the chart of accounts. So I go to the modules and then general ledger, from which I will go to this chart of accounts. So if I have to create main accounts, first I will have to create the chart of accounts. So, for example, for your newly created company like that SGPC company, if you need a chart of accounts, you will have to create a new chart of accounts called COA for Singapore. Singapore's chart of accounts, right? and I saved it. So first I'll have to create these before I create the main accounts. Fine. So I will not create the main accounts. Now let us firstly review the chart of accounts that are available. Take a look at this one here. This chart of accounts is for India. India I have a chart of accounts under which I have a lot of main accounts. I have some accounts for my trade receivables. I have an account for cash or cash equivalent like this. Whatever the accounts that I need, all of them are created under the India chart of accounts. Obviously, we are talking about the demo data here. But that is fine. Let us assume that we created this chart of accounts. Then let me take you to the IMFcompany, which is my Indian legal entity. So when I go there, let me open up the ledger form. I go to the modules and I go to the generalledger under which I will go to this ledger form. I believe that you remember this form where I was discussing this form and it talked about this chart of accounts. I told you that we would talk about this chart of accounts later, right? And this is the right time to talk about it. So if you look at this IMF company, my chart of accounts name is set to India. So, because of the reason, my Indian legal entity is pointing to this chart of accounts. So that means my IMF company will be using the accounts that are available under this particular chart of accounts. Okay? And let's take another example now. So similarly, for a Malaysian company,I have another chart of account. So, if I go to Malaysia, that Malaysian company will be linked to the Malaysian chart of accounts. Then what about sharing? We talked about sharing capability, right? So let's take a quick look at this one. Now, I have another chart of accounts in the demo data, which is called "shared." So forget about this name. This name doesn't really matter, right? I'm going to take you to USMF company right now, and I'm also going to take you to USRT company. So let's take a look at this one. Now, in the USMF company, look at this legal entity name. That is Contourso Entertainment System USA. And here, this is my contour. So, retail for different legal entities, right? But if you look at them, both of them point to the same chart of accounts called shared. You see, this is the thing that we were talking about. And in the example that we were talking about, we talked about the chart of accounts being almost, I mean, the main accounts being the same in both legal entities, right? So I have one chart of accounts created, which is called "shared." I can actually name it anything. For example, I could have called this "Chart of Accounts for US Entities," and then I could tag them in both legal entities, correct? So you'll create all the mainaccounts once and still allow your multiple legal entities to use the same accounts, correct? As a result of this, if I want to create another main account in either company tomorrow, I will only have to do so once. I will have to create it only once,and it will appear in both legal entities, okay? So I will show you a quick example. Here I have this Chinese chart of accounts, right? And when I go to these companies,I go to the general journal. I am going to the journals under general ledger. And then if I go to the lines, let's do one thing. Let us quickly create a new journal and go to the lines. If I click this list of accounts here, do you see this account? One two zero one? You're not seeing it, right? Even if I try to search for one double zero, I will not be able to see it. You see, it's trying to filter one double zero oneaccount and I'm not able to see it because myUSMF company is associated with my shared chart of accounts. And that is the reason I'm seeing only the accounts that are available under this particular chart of accounts, right? And the brilliant thing about this one is that, even if my chart of accounts is shared with two companies, I still have a certain amount of control. For example, I'm creating a new account called Event Expenses. So let us assume that condoSo Entertainment Systems USA is planning for an event and that account number is something like 70 one double zero.And this account is not at all needed for this company. And in such cases, I do not want to allow my US RT company to see this main account. In such cases, I will be able to control this. Though my chart of accounts is shared, I can still say that this particular account should not be shown to the USRT company. So that way, when my 80% of the accounts are seen by both the companies, I can create one single chart of accounts and still share it with both the companies. And whatever the other 20% of accounts are, I can still control them, create them, and make them available only to a specific legal entity for which that account should be accessible, right? So that is how the chart of accounts is designed. So now we have created this new chart of accounts, right? What I will do is I will quicklycreate a new main account called 61500 TravelExpenses and we will talk about the different fields in main accounts in our next video. But for now, I'm just quickly creating a new main account and I'm closing this one, right? So this is how you will create a chart of accounts and then you will create accounts under that particular chart of accounts. I wanted to show you a couple of more places. So you close this form and you go to the general as you module and open up these main accounts. So, if you open these main accounts, you will see the main accounts that are part of your chosen chart of accounts. For example, in the USMF company, we shared a chart of accounts, right? And that is the reason I'm seeing that as a shared name here. And all the accounts that are available under share are visible here. even if I try to make a main account from here, because this is another location where you can make a main account. When I say new from here,sorry, it already started here. So this new account that I'm creating that will be available in both places, let's say I'm going to create a new account called 75 Triple Zero Event Expenses, right? So I have created this and will write about the other fields later. This new account that I created is going to the USRT company here. And even from here, if I open up the main accounts, I'm already in the main account form. But I'm just taking you to the same places so that you know that we are in the US Rd company and going to the main accounts. So here, if you search for your newly created account, you have that right. But in our next video, we'll see how we can make it available only in the USMF company. Okay? So that is about how the main accounts are coming up. When we create them in one company, how do they end up in other companies as well? At the same time, we created our new chart of accounts, right? Let's go to our chart of accounts and look at our newly created chart of accounts for Singapore. Sorry, this is the one that we created just now. So this is the new account that we created under this chart of accounts, right? Now what we do is I have created a test company just to show you how it works. right? So let me go to the legal entities. And then I created a test legal entity. And it has nothing in it for now. And obviously, since this form is a shared form,you are seeing this data, but otherwise, this is a fresh legal entity that is created. Now, what I will do is go to the modules, go to General Ledger, and try to open up this main account. So the system tells me that you must select the account type because this is not configured. Now, I will go to the ledger form. So here I will tell the system that my test company should be using the chart of accounts that I created just now, okay? And I'm randomly selecting some of the calendars that we created last time. You see, I've saved it and it asks for the accounting currency. I want the accounting currency to be the Singapore dollar. Since this company is established in Singapore, the reporting currency is the US dollar. So this is fine. Now what we do is let's go to our main accounts. You see, you are seeing only one account. So that is how your chart of accounts should be set up and your main accounts be created. So only this one will show up for you when you create a new general journal now, alright? So this is how you do it. And I would like to end this video with another small setup. In the previous videos, you created a new legal entity called SGPC, right? I mean, we created it, right? So I go to the ledger form. So basically, I can select my newly created chart of accounts here. But in the previous videos, I've selected this to be a shared legal entity. Because if I select this one, I will have to create all the accounts now because it takes a lot of time, but at the same time,you have to know how to create them. So that is the reason we created a new chart of accounts and we associated it with our test company. But when it comes to our practise company, which is a Singapore legal entity, you choose the shared chart of accounts itself. In my previous video itself,I've selected this for you. So I've just recreated the legal entity so you'll be able to better understand that, right? So with this, your SG PC is now ready with even the charge accounts. all right? So that's all for this session. In the next video, we will look at how to create main accounts and different setups that you have under main accounts. That's thanks for watching. See you in the next video.

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