Many existing transaction origins within
- Parallel set of accounts
- Accounts with a dimension
- Classified Transactions within the chart of accounts .
Copy Previous Transaction and Post with Changes
The simplest method is to copy a previous transaction which was posted to your base ledger, modify it, mark it for IFRS, and post it.
Go to Transactions>>Financial>>General and select Copy from the menu:
The form opens to Copy Journal Entry.
Modify the resulting transaction by marking it for IFRS and making your changes. Then post it.
The module Revenue/Expense Deferrals simplifies the process of capitalizing revenue or expense in order to setup the process to allocate the amounts over a specified period of time. A deferral profile of commonly deferred transactions can greatly simplify the differentiation between GAAP and IFRS entries.
Either method of Deferral transaction posting can be utilized: Balance Sheet or Profit and Loss methods.
Transactions from subsidiary ledgers can be utilized with Revenue/Expense Deferrals. The entry does not need to initiate at just the General Ledger level.
See Chapter 11 in your Microsoft Dynamics® GP 2010 General Ledger Reference manual for information on the setup and entry of Revenue/Expense Deferrals.
Fixed Asset Books
Fixed Asset Books can be utilized for various depreciation and amortization methods. While the Corporate Book is the only one that can be posted to the General Ledger, depreciation can be run for any of the other books. Those Depreciation Processes produce good audit trail reports that can be utilized to make general ledger entries for IFRS.
To date, no IFRS-unique methods have been added to the Fixed Asset module; however, IFRS depreciation rules tend to be more simple than GAAP depreciation rules. User-defined straight-line depreciation over a number of years should suffice.
.Quick or Recurring Journal Entries
Creating General Ledger Quick or Recurring Journals may further facilitate IFRS entries.
Quick Journals provide the fastest and easiest way to duplicate entries when the posting accounts remain the same, but the amounts change. For example, you may need to recognize new contract deposits or retainers differently between GAAP and IFRS. The posting accounts remain the same, but the amount differs per contract. In the Quick Journal Setup window, you can set up an entry that includes the various accounts. Then in the Quick Journal Transaction Entry window you can date the entry as needed and enter the correct amounts.
The Quick Journal does not contain the GP 2010 functionality to specify a ledger, so should not be utilized if you have opted to use only Method 4 – Classifying Transactions by Ledger.
The General Ledger Recurring Journal functionality is attached to the Batch Entry window. Setting the Frequency to Monthly will retain the entries from month to month. Even though the identical entry populates the Transaction Entry window, the entries can be modified from month to month.
In the next 2 blogs we’ll first examine: IFRS Accounting with Microsoft Dynamics® GP: Cash Flow Statements – Direct Indirect Methods and then we’ll look at IFRS Accounting with Microsoft Dynamics® GP: Cash Flow Statements – Indirect Methods…and the Benefit of Direct over Indirect.
©2011, Computeration®, Inc.
Request your free copy of our IFRS white paper,
By Gloria Braunschweig, The IFRS Implementation Expert for Dynamics GP, with Computeration, a Pacific Northwest Microsoft Dynamics GP Partner.