Financial Management Module - General Ledger ( Part - 1)

General Journals:

They are used to post information into general ledger and other accounts. I have used cronus canada company as an example in this blog.

fig. 1, General Journals

• General Journals are also used to post cost allocations and other adjustments to the accounts.
• Its also used to enter information into recurring journals which are used when the company needs to allocate recurring entry lines in addition,
• General journals enable users to reverse and correct incorrect entries when necessary.
• General journals are used to enter data into the general ledger accounts and other accounts such as customers, vendors and banks. 

Journal entry system has 3 layers,
1. Journal templates,
2. Journal Batches
3. Journal Lines

                                          fig. 2 and fig. 3, shows hierarchy of Journals.









Although, all these 3 layers are always present, Only journal lines and batch name will display in a journal window.

You can refer to my another blog regarding Overview of Journal Template, Journal Batch and Journal Lines to know about 3 layers of journals in detail.

Journals are used for different types or groups of entries and can be applied to other application areas such as purchase, sales, cash receipts, payments, intercompany (IC).

fig 4, shows different types of journals

• Each journal type is setup with its own journal template.
• Journal template is used to provide the basic journal structure and to specify default information for all batches.

There're several standard general journal templates set up in the application areas, these templates cover the most common routines that're used in the program.

In all journal templates, entries can be posted to the general ledger, customer, vendor and fixed asset accounts.

Some standard templates are automatically setup with the default batch as shown in below fig.

fig. 5, template holding setup as default batch 

• Journal batches are created based on journal templates.
• Batches that are created from a specific template have identical structure, default settings and information. These similarities are defaults that can be changed for each journal batch.

Journal batches are frequently used to separate one users entries from another.

For ex.
Accounting manager and the book keeper.

fig 6, accounting manager and book keeper

Accounting manager makes entries and post them later upon approval.
To keep accounting manager entries from becoming mixed with bookkeepers entries separate batches are assigned to the two users.

Journal lines are the entries that must be posted.

Information entered in journal lines includes account no.'s, posting date, amounts, offsetting accounts.

fig 7, information to be entered in different fields of journal lines

The lines entered in journal are temporary and can be changed as long as the journal has not been posted.


Journal lines can be entered in different ways,

For a simple journal - where debit amount equals credit amount, it can be entered on a single journal line with the use of the balance account on that line. Each line is balanced itself.

fig 8, simple journal line
(Balance account no. included for balancing the amount)

For more detailed entries, an account can be entered on each line with an associated transaction amount while leaving the balancing account blank all lines will balance as a group.

fig 9, more detailed entries in journal line
(Balance account no. not included, balancing happens based on amount values in 2 different lines)

I will discuss with some more Live examples of General Journal transactions in my next blog with 3 scenarios, Stayed tuned on this blog.

Any doubts? Drop your questions to my mail id,
mail2harikiranbm@gmail.com

Stock Management in Microsoft Dynamics NAV 2017

Stock Management 2017:

In NAV you can setup multiple location which allows companies to manage business operations within one database.

Location:
a place that handles physical placement and quantities of items.

Stock keeping unit:
An item or a variant of an item at a specific location.

Managing multiple locations:
At location level on a stock keeping unit card we can add:
1. Replenishment information(restoration of stock to former level)
2. Addresses
3. Financial posting information.


Ex.
Item 70003
Navigate -> Stockkeeping Units

To view transaction of item we go to Item Ledger Entries. .
Item Statistics - Different piece of statistic for this item based on criteria entered.

We can setup unlimited no. of UOM.

UOM: is a definite magnitude of a quantity.

• It is used as a measurement of same kind of quantity. .
• A unit of measure is assigned to all inventory items and must be defined before a product can be entered. 
• Each product will have a stocking unit of measure, sales ordering unit of measure and a purchasing unit of measure.

Unit of measure can also have automatic conversions to other units of measures by way of a conversion factor

Ex. for item 80100 - Printing paper

Base UOM - Box
Sales UOM - Pack
Purch. UOM - PALLET

All the UOM values are inter-related to each other.
Each uom is related to Base UOM on item card through conversion factor.

Item variants - We use this in item card if we've large no. of identical items. (same item, different colour)

Item Cross Reference:
Cross reference can be setup against items. It can be a barcode or a specific code used by vendor or customers.

When the quantity required on the sales order exceeds the quantity i.e. available in inventory, a message will apear for the user that substitute exists for this item, (if any substitutes available).

Item availability can be viewed in numerous ways in item card,

• By Event 
• Period Variant
• Location
• BOM Level
• Timeline.

These Item availability i.e. displayed based on different factors actually defines the basis of stock management.

Warehouse management module 2017 Part 2 - Pick an item and ship it out of white warehouse

Pick an item, bring it into shipping bay and then ship it out of white warehouse.

I've selected white warehouse in this blog,

I need to sell an Item 80207-Mouse from our white warehouse which is in bin No. "W-04-0009" and it has to be shipped out of white warehouse.

If you select blue or some other warehouse where bin is not enabled then you just enter quantity,
Qty. to ship.
In ribbons of sales order click on
   post -> ship.

But in our example we've chosen white warehouse which is bin enabled that means,
we should also know the location of inventory apart from location of warehouse.

To do so,

1. create sales order, enter quantity
2. Release, (don't close the purchase order)

3. Click the action button Create Whse. Shipment in sales order ribbons.
(on doing this basically it sends instruction to warehouse that, I need to ship 80207-Mouse out of bin "W-04-0009")

4. Click on Create Pick from the ribbons (You can assign a user of your choice or leave it blank)
A warehouse shipment will be released.

5. role-center page of warehouse -> Click on Unassigned Picks - > Choose your pick from the list
which you created recently.

6. In Ribbons of Unassigned picks page -> Autofill Qty. to Handle -> Register Pick

7. Come back to warehouse shipment page, select the shipment which you had recently created in step 3, In ribbons -> Post -> Ship

Verify in items and bin-contents whether our item which was sold recently is updated in Qty. on Hand field.

Warehouse management module 2017 Part 1 - Purchase an item and place it in bin of white warehouse

To purchase an item and place it in white warehouse bin,

I've selected white warehouse in this blog,

I need to purchase Item 80207-Mouse from vendor and it has to be placed in white warehouse.

If you select blue or some other warehouse where bin is not enabled then you just enter quantity,
Qty. to receive.
In ribbons of purchase order click on
   post -> Receive.

But in our example we've chosen white warehouse which is bin enabled that means,
we should also know the location of inventory apart from location of warehouse.

To do so,

1. create purchase order, enter quantity
2. Release, (don't close the purchase order)
3. Click the action button Create Whse. Receipt in purchase order ribbons.
4. Post the receipt.

Now we've created a put-away activity for warehouse.
Ex. Our item is now pulled in the receiving bin no. "W-04-0009".

We've Pulled inventory in receiving bay that's it, but it has not been put away in bin's in/stock(I mean inventory location).

System automatically creates activity to do that by choosing Warehouse put-away from role-center page of warehouse.

5.  role-center page of warehouse -> Click on Warehouse put-away - > In ribbons click Register put-away.

Verify in items and bin-contents whether our purchased item is updated in Qty. on Hand field.