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IFRS Accounting with Microsoft Dynamics® GP: Sub-ledger Transaction Level (Part 3) Classifying Transactions by Ledger and A Hybrid Approach

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In this blog, we examine the final two of five available methods of deploying IFRS at the Sub-level Transaction Level. Missed our first two discussions? Click here to see Sub-ledger Transaction Level (Part 1): Duplicating your Database or click here to see the Sub-ledger Transaction Level (Part 2):  Adding a Parallel Set of Accounts and Adding a Dimension to Your Existing Chart of Accounts.


Method 4 – Classifying Transactions by Ledger

Companies with Microsoft Dynamics® GP systems that already are complex with consolidations or dimensional accounting may choose to implement a classification of transactions at the general ledger level specifically designed for creating GAAP and IFRS ledgers.  The functionality displayed initiates in the General Ledger Setup form.

The functionality is put to use in the General Journal Transaction Entry form.

Within Management Reporter Designer, you may also select the ledger on which you wish to report.

While most companies would choose to use a hybrid approach, placing their IFRS entries into a separate, parallel chart of accounts, the system will actually allow the entry into the same chart of accounts.  Then Base, IFRS, Local, or All transactions can be viewed in the General ledger transaction inquiry forms.


Method 5 – A Hybrid Approach Combining Two of the Other Methods

Many larger companies already employ several account transaction classification methods.  It’s commonplace to have multiple databases which must be consolidated.  Within one or more of those databases, dimensional tracking may also be underway as a type of straightforward project accounting.

In complex, consolidated systems, it may be necessary to track some IFRS transactions at the sub-ledger level while tracking others only at the general ledger level.  While employing several methods to report by both GAAP and IFRS will complicate financial statement reporting, each company must determine the method or combination of methods which works for them.


In the next blog we’ll examine IFRS Accounting with Microsoft Dynamics® GP: Functional and Strategic Challenges of Implementing the Chosen Methodology.

©2011, Computeration®, Inc.


Now available…our free IFRS white paper. Request your copy of  If IFRS is on Your Horizon, What are Your Choices? now.


By Gloria Braunschweig, The IFRS Implementation Expert for Dynamics GP, with Computeration, a Pacific Northwest Microsoft Dynamics GP Partner.

Computeration specializes in ways to enhance your company’s solutions with Microsoft Dynamics GP in Idaho, Oregon, and Southwest Washington, with clients around the world, Computeration makes your implementation successful by offering experienced project management, data integration, training, and consulting services.

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