MS Dynamics AX - Explanation of Journals / Ledgers / Vouchers etc...

Posted on 2008-11-19
Medium Priority
Last Modified: 2012-05-05
Hi Experts,

I am a little clueless in understanding how Journals, Ledgers and Vouchers work.
How do they integrate / link with each other and what is the meaning of each of them.

Can you also give me realtime example of how they are used.

Question by:Marius0188
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Accepted Solution

Agrippine earned 1200 total points
ID: 22995131

I am not sure whether I will be able to explain everything, but I'll give it a try and maybe it helps you on ... if you describe in further detail what your current problem is, it will be easier for me, too.

_Journals_ in AX are used to collect transactions of a similar kind that are then performed (posted) at the same time. You will find journals in inventory management, general ledger, accounts payable / receivable etc.
Very often, the journal header will provide some initialization information for the journal lines, so that you do not have to modify this field on all lines (e.g. the transaction date).

The _ledger_ table is a list of ledger accounts; these are used by the financial department for book keeping.
AX is an integrated ERP system which in this context means that a transaction in the accounts receivable (take an item from stock and send it to the customer) will automatically reflect in the book keeping (general ledger). You will see new transactions on the appropriate accounts (lines in ledger table).
"appropriate accounts" is spelt out easily, but actually, many parameters have to be set up to "find" the accounts appropriately - in the example of accounts receivable, they will depend on the customer group, the customer tax group, the item group ... and also of WHAT you are posting: The packing slip / the invoice ...

Now, a _voucher_ is a unique ID that is assigned during the posting process. All transactions on the ledger accounts, that belong to the same process will be assigned the same voucher number. For one voucher number, you might have transactions on several ledger accounts, the account receivable and one or more invent table entries.

A real time example would be to create a "daily" ledger journal, go to lines and enter some positions, using ledger accounts as account and offset account and assign an amount to post. You will have a new voucher (number) for each of these lines (after posting). Go to the account itself and to transactions, find your voucher. Compare to the transactions of the offset account.
Also, go to general ledger -> inquiries -> voucher transactions and enter your voucher number to see all related transactions.

This is a very rough first answer (written by a technical person) ... I do not know whether I am totally missing your point and explaining things you already know ... but maybe we can come into a discussion which might help you more!?

Kind regards,

Assisted Solution

agusacil earned 800 total points
ID: 23427888

Steps in recording economic transaction are :
- Analyze the effect of a transactions to the ledger accounts. => Nothing to be done in Axapta
- Record the transaction into journal (book of original entry). => Enter the transaction in journal
- Post the transaction into ledger. => Post the transaction so it afffects the balance in ledger accounts.

The purpose of journal is to show in one place the effect of a transaction. Journal is given a voucher number which is copied into ledgertrans table, so we can see the relation of ledger transaction and its original journal.
In Axapta, a journal entry can be set so it has only one voucher number, or one voucher number when balance, or manually filled in.

Example :
Company purchase an equipment (desk) at $200

Journal :
desk    $200
                cash               $200

After posting, you can see in ledger that desk balance increased by $200 and cash is deducted by $200.

Hope that make sense.


Expert Comment

ID: 23851711
Are we just points hungry here?

You can't learn AX from a Forum, you have to go on a training course - for financials you need at least 3 days.
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Expert Comment

ID: 23855117
Well, you cannot learn AX without asking questions either. And believe me: If anybody thinks he knows financials after a training of three days, he is surely mistaken.

It certainly does not hurt you if somebody tries explaining this here, right? Please don't blame people trying to help ...

Expert Comment

ID: 23863956
It wasn't a critism of anyone - just a practical comment that you cannot AX from scratch without training.

You can learn AX modules in 3 days - i.e. Firebrand do 3-5 day training course in trade and logistics which is far more complicated than financials.

You do, of course, need to reinforce this knowledge with practical use to be competant.

I just think that the author will become frustrated with AX unless they seek professional help: take a look at training at microsoft to see acredited training organisations or ask the reseller for help.

Kind Regards,

Expert Comment

ID: 23866362
Well, let's not argue then, seems like we agree ;-)

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