Ledger Accruals Posting in Ax 2012

Scenario 1: Insurance: Usually we use to Pay insurance premium once in the year i.e in the month of April or any month for the whole year. If I post the total amount in April month then the total expense will be allocated to only April instead of all 12 months. Hence Initially we would post the Insurance in Prepaid Insurance account and then we would transfer those amounts to all the months equally. Below are journal entries gets posted.

Creating of Invoice on Insurance journal entry will be posted.

Go to Accounts Payable > Invoice Journal > Select the Journal> Post the below entry

 

Prepaid Insurance A/c  Dr

Vendor A/c                   Cr

 

While doing payment from payment journal in Accounts payable module entry will be posted is

 

Vendor A/c                   Dr

Cash/Bank A/c             Cr

 

After posting payment against the Insurance invoice then need to create an accrual schemes for the Insurance premium for that:

 

Go to General Ledger > Setup > Posting > Accruals Schemes

 

Create Accrual scheme

When posting this account use Expense account on both Debit and Credit i.e; Insurance account.

 

Define unique number sequence, select voucher as multiple and posting date in Beginning.

 

In Duration calendar type based on business calendar i.e, if business year runs for the April to march then select fiscal year and period frequency yearly, monthly and period.

Length of the period depends i.e, Insurance for a 12 months and we can use other one has Rent for 3 moths.

 

Once we done with above setups and configurations now we need to distribute or post the accruals for insurance by using accrual schemes.

 

Go to General ledger > Journals > General journal

 

Insurance A/c DR

Prepaid insurance A/c Cr

 

Once entering this accounts go lick on functions and go to accrual schemes

 

Select the accrual identification from lookup then you can view base amount will be updated based on journal line amount 

Enter start date i.e; April and End date will be updated by system based on the period which we given in accrual scheme

If we want to check how transaction will effect click on transactions which to be posted. Here we can find the multiple entries which are going to be realized as an expense from prepaid insurance account. Then click on OK and post the transaction.