General ledger parameters (form)

Article
03/25/2015

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Click General ledger > Setup > General ledger parameters.

Note

This topic has been updated to include information about features that were added or changed in the following hotfix for Microsoft Dynamics AX 2012 R3 Cumulative Update 8: KB3047235

If you’re in the public sector and you use general budget reservations, see also Set up general budget reservation rules and reservation types (Public sector).

Use this form to set up parameters for General ledger. You can use this form to do the following:

Select among various types of functionality.
Enter default information that is used if the information has not been specified at a lower level.
Select number sequences that are related to General ledger.
Enable letters of credit and letters of guarantee.

Note

Before you can select some default values, you must set up the values in other forms. To open the form where you can create values, position the pointer in the field, right-click, and then select View details.

Dependencies and relations

Some fields have dependencies on other fields. When you enter or select values in these fields, you must consider the values in the related fields, also. Use the information in this table to see which fields are related to others.

When you select values in this field ...	Also consider the selections you made for ...
The Item sales tax group field in the Sales tax area	The Item sales tax group and Exempt fields on the Setup FastTab in the Main accounts - chart of accounts: %1 form
The Apply U.S. taxation rules field in the Sales tax area	The Pct. exempt from sales tax field in the Values form
The Calculation date type field	The Use document date for vendor invoices field in the Accounts payable parameters form

Tasks that use this form

(GBR) Set up reverse charge VAT

Set up postdated checks

(THA) Set up withholding tax parameters

Activate the letter of guarantee

(BRA, MEX) Set up General ledger to reverse and update opposite sign amounts

Set up general budget reservation rules and reservation types (Public sector)

Navigating the form

The following tables provide descriptions for the controls in this form.

Links

Link	Description
Ledger	Set up general parameters, and also parameters for accounting rules and fiscal year closing.
Sales tax	Set up parameters for general taxes, cash discounts, payments, invoices, and special report sales taxes.
Withholding tax	Set up the minimum invoice amount for withholding tax transactions. Note (THA) This control is available only to legal entities whose primary address is in Thailand.
Inventory dimensions	Select inventory dimensions to display on the lines in the Inventory to fixed assets journal.
Number sequences	Define number sequences for General ledger.
Reverse charge	Set up threshold amounts and sales tax information for items that are subject to reverse charge value-added tax (VAT) and that are sold to VAT-registered businesses in the United Kingdom. Note (GBR) This control is available only to legal entities whose primary address is in the United Kingdom.
Batch transfer rules	Set up batch transfer rules for subledger journal accounting entries. These rules include the source document type and transfer mode.
Income tax	Enable Zakat report generation. Note (SAU) This control is available only to legal entities whose primary address is in Saudi Arabia.

Fields

Field	Description
Check for voucher used	Select how to handle duplicate voucher numbers in journals. Note You must select Accept duplicates to be able to use different transaction dates for the same voucher number in the Date field on journal lines.
Check continuous numbers	Select this check box to verify that the number sequences that generate vouchers in the ledger are continuous.
Interrupt in case of error account	Select this check box to interrupt updates to automatic transactions with a message when the error account is used in the posting process.
Maximum penny difference	Enter the maximum rounding for a voucher for amounts in the accounting currency. If the penny difference is equal to or less than the penny difference that is specified in this field, the difference is posted to the penny difference ledger account that is specified in the Accounts for automatic transactions form.
Maximum penny-rounding in the reporting currency	Enter the maximum rounding for a voucher for amounts in the reporting currency.
Transaction date reference to competence date	Select this check box to allow acknowledgement dates for transactions that are used for Italian reporting. Note (ITA) This control is available only to legal entities whose primary address is in Italy.
Extended ledger journal	Select this check box to run extended journalizing, which prints a report that is sorted by the date and time when the journals were created. The standard journalizing report is sorted by journal number.
Use noncontinuous page numbering	Select this check box to print the journalizing reports from page 1. Clear this check box to use continuous pagination.
Check journalizing	Select this check box to verify whether periods are journalized before they are put on hold or are closed. The verification is performed in the Ledger calendar form when the Period status field is changed to On hold or Closed. For more information, see Ledger calendar (form).
Allow the financial dimensions to be edited on the advanced ledger entry form	Select this check box to allow the ledger account to be changed in the Advanced ledger entry form. This control is available only if the Public Sector configuration key is selected.
Values used for summary account	Select the value to use as the summary account when offsetting subledger journal account entries are created for accounting distributions. Source document – The financial dimension values from the Financial dimensions tab on the header of the source document form are displayed as the offsetting subledger journal account entries. Accounting distributions – The offsetting subledger journal account entries are created based on the financial dimension values on the accounting distribution for which the offsetting subledger journal account entry is created.
Correction	If this check box is selected for transaction reversals, a debit transaction is reversed by adding a minus debit transaction, and a credit transaction is reversed by adding a minus credit transaction. When you reverse a customer or vendor transaction by using a correction, the connected ledger transactions are also reversed by using corrections. This is known as Storno reversal.
Use posting definitions	Select this check box to use posting definitions instead of posting profiles and to enable the Commitment accounting options. For more information, see About posting definitions. If you select this check box, you cannot create prepayments for purchase orders. Important When you select this check box, all posting definitions become active. Every transaction type that is associated with a posting definition then uses that posting definition to post to the general ledger. For example, if you associate a posting definition with the Vendor invoice transaction type, all vendor invoices use posting definitions.
General budget reservations	Select this check box to record general budget reservations, purchase requisitions, and purchase orders in the ledger. Note This control is available only if AX 2012 R3 CU8 is installed with hotfix KB3047235, and if the Public Sector configuration key is selected.
Reverse opposite sign amounts	Select this check box to post new or saved negative debit amounts as credits in the general ledger, and new or saved negative credit amounts as debits. To reverse the sign on any existing posted transactions in the general ledger, so that negative debit amounts become credits, and negative credit amounts become debits, click Update opposite sign amounts. For more information, see (BRA, MEX) Set up General ledger to reverse and update opposite sign amounts. Note (BRA, MEX) This control is available only to legal entities whose primary address is in Brazil or Mexico.
Enable budget appropriation	Select this check box to use posting definitions to record budget appropriations in the general ledger for budget register entries. In the Budget parameters form, you must select a budget journal name for the budget appropriation before you can select this check box. For more information, see Budget parameters (form). Budget appropriations represent budget amounts on the balance sheet. They are used to record the estimated revenues and the impact on fund balances in the general ledger for financial reporting. As budget register entries are posted, a general ledger posting must also be generated, which affects the budget appropriations and budgetary fund balance accounts. By using posting definitions with budget register entries, budgets are also recorded in the ledger.
Enable encumbrance process	Select this check box to create encumbrances, which record entries in the general ledger for committed or obligated purchases. Note When this check box is selected, you must use posting definitions for committed or obligated purchases. For more information, see About purchase order encumbrances.
Enable pre-encumbrance process	Select this check box to create both pre-encumbrances and encumbrances. Pre-encumbrances reserve funds for planned expenditures. Note When this check box is selected, you must use posting definitions for pre-encumbered purchase requisitions. For more information, see About purchase order encumbrances.
Delete close-of-year transactions during transfer	Select this check box to delete opening transactions and system-generated closing transactions that exist for the year to be closed when the transfer is processed again. For more information, see About the Delete close-of-year transactions during transfer check box.
Create closing transactions during transfer	Select this check box to create closing transactions when the opening transactions job is run. For more information, see Create closing transactions during transfer.
Set fiscal year status to closed	Select this check box to display a status of Year closed for all periods for the fiscal year that is being closed.
Voucher number must be filled in	Select this check box if a voucher number must be entered when opening transactions are created for a new fiscal year.
Limited number of open fiscal years	Enter the number of open fiscal years. If the total number of currently open fiscal years plus the new fiscal year will exceed this number, a message is displayed, and the new fiscal year is not created. Note (FRA) This control is available only to legal entities whose primary address is in France.
Account for inflation correction (REPOMO)	Select the ledger account where the adjustment inflation amount for REPOMO and RESTATE is posted. Note (MEX) This control is available only to legal entities whose primary address is in Mexico.
Inflation offset account	Select the offset account to use for inflation adjustment transactions. Note (MEX) This control is available only to legal entities whose primary address is in Mexico.
Item sales tax group	Select a default item sales tax group that is used when journal lines are created. For more information, see Set up a default item sales tax group for a main account. If you have not defined an item sales tax group for the main account in the Main accounts - chart of accounts: %1 form, the item sales tax group that is selected here is displayed as the default item sales tax group on new journal lines. If the Exempt check box is selected for the main account in the Main accounts - chart of accounts: %1 form, the item sales tax group on the journal line is blank, even if you select an item sales tax group in this field.
Calculation date type	Select a calculation date type, which determines the sales tax rates to use if you have set up different rates for different dates: Invoice date – This is the default value. Sales tax is calculated by using the sales tax percentage that is valid on the invoice document date or the date when the invoice is posted. If the Use document date for vendor invoices check box is selected in the Accounts payable parameters form, the invoice document date is used. If that check box is cleared, the date when the invoice is posted is used. This date is equal to the date in the Posting date field in the Vendor invoice form. Delivery date – Sales tax is calculated by using the sales tax percentage that is valid on the delivery date. For invoice lines that are not associated with a purchase order, sales tax is calculated by using the sales tax percentage that is valid on the invoice document date or the date when the invoice is posted. If the Use document date for vendor invoices check box is selected in the Accounts payable parameters form, the invoice document date is used. If that check box is cleared, the date when the invoice is posted is used. Document date – Sales tax is calculated by using the sales tax percentage that is valid on the date when you created the sales order. This date is equal to the date in the Invoice date field in the Vendor invoice form. For more information, see Calculation date type example.
Calculation method	Select whether sales taxes on invoices are calculated for each line or for all lines. If the marginal base of any sales tax code is based on either a line or a unit on the Calculation FastTab of the Sales tax codes form, you must select Line in this field.
Amounts include sales tax	Select this check box to enter gross amounts in journals. Gross amounts include sales tax. For more information, see About including sales tax in journal amounts.
Apply U.S. taxation rules	Select this check box if the legal entity follows the sales tax and use tax rules of the United States. According to these rules, sales tax on a purchase is posted as an expense to the ledger account to which the purchase itself is debited. This ledger account is indicated on the invoice or journal line. Note If this check box is cleared, sales taxes that cannot be partially or fully deducted in the tax calculation can be posted to a use tax ledger account that you set up in the Ledger posting groups form. For more information, see (USA) Applying U.S. sales tax and use tax rules.
Conditional sales tax	Select this check box if sales tax should not be reported and paid before the invoice is settled. For more information, see About conditional sales tax.
Check sales tax groups	Select the notification to receive if the sales tax group has errors. None – No notification is given. Warning – A warning message is displayed, but the posting process continues. Error – An error message is displayed and the posting process stops.
Enable Ãland tax requirements	Select this check box to use the tax functions for the Åland islands. Note (FIN) This control is available only to legal entities whose primary address is in Finland.
Tax direction requirement	Select this check box to require that a tax direction be defined for a ledger account before tax-related transactions can be posted to that account.
Validate tax code	Select this check box to validate the sales tax code that is assigned to the ledger account when you post a document.
Reverse sales tax on cash discount	Select this check box if sales tax should be reversed when a cash discount is granted. This selection determines the default value for new sales tax groups, but you can change the setting on the sales tax group. If you selected the Cash discount is applied in the invoice check box, this field is not available.
Deduct cash discount before sales tax calculation	Select this check box to never calculate sales tax on cash discount amounts. Note (ESP) If your legal entity’s primary address is in Spain, and you selected the Cash discount is applied in the invoice check box, this field is not available.
Cash discount is applied in the invoice	Select this check box to allow the cash discount to be calculated on the invoice and not be calculated on the payment. Note (ESP) This control is available only to legal entities whose primary address is in Spain.
Cash discount is calculated on amount including sales tax	Select this check box if the cash discount for customers should be calculated based on the total invoice amount, which includes sales tax. For more information, see Cash discount is applied in the invoice. If you selected the Cash discount is applied in the invoice check box, this field is not available.
Mandatory item tax groups	Select this check box to require that item tax groups be specified on free text invoices.
Cash discount is calculated on amount including sales tax	Select this check box if the cash discount for vendors should be calculated based on the total invoice amount, which includes sales tax. For more information, see Cash discount is applied in the invoice. If you selected the Cash discount is applied in the invoice check box, this field is not available.
Sales tax on overpayment or underpayment	Select this check box to calculate sales tax on overpayments or underpayments.
Sales tax amount per invoice line	Select this check box to update the total calculated sales tax amount on the invoice journal. When this check box is cleared, no sales tax amount is updated.
Include corrections	Select this check box to include sales tax corrections in the sales tax payment periodic job and report. A sales tax report that includes corrections from previous periods is not marked as a correction report. If you select this check box, the Sales tax payment version field is not available in the Sales tax payment form. If this check box is cleared, you must report corrections in a separate sales tax report. For more information, see Using the Include corrections check box.
Legal entity for intercompany tax posting	This control is not available in versions of Microsoft Dynamics AX 2012 prior to cumulative update 5 for AX 2012. Select whether to post intercompany tax amounts to the legal entity accounts where the expense or revenue amounts are being recorded or where the payable or receivable amounts are being recorded. Destination – Post the sales tax amounts for intercompany transactions to the legal entity where the expense or revenue is being distributed. Select this option if your organization uses U.S. sales and use tax. (This is your only option if the Apply U.S. taxation rules option is selected in the General ledger parameters form.) Source – Post the sales tax amounts for intercompany transactions to the legal entity where the payable to the vendor, the receivable to the customer, or a bank account is recorded.
Inventory dimensions	Select an inventory dimension to display in the inventory journal, and then select the Journal lines, inventory check box. Repeat for additional inventory dimensions.
Journal lines, inventory	Select this check box to display the selected inventory dimension on the Overview tab in the inventory journal for fixed assets.
Reference	The reference type for the number sequences that are related to General ledger. You cannot create references.
Number sequence code	Select a number sequence that is associated with the reference. To define number sequence codes, use the Number sequences form. For more information, see Number sequences (form).
Rule type	The entity to which the rule is applied. You cannot change this value. Company – The batch transfer rule applies to all documents in the legal entity that you are currently logged onto. Document – The batch transfer rule applies only to the document that is selected in the Source document type field.
Source document type	Select the source document type for the transfer rule.
Transfer mode	Select when and how the account entries are transferred to the general ledger. Asynchronous – Transfer source document subledger journal entries to the general journal after the source document is journalized into the subledger journal. The transfer occurs whenever server resources are available to process them, which might be immediately, or might be later. You can then summarize the entries in the Summarize accounting entries field. Synchronous – Transfer source document subledger journal entries to the general journal immediately. The source document is journalized into the subledger journal at the same time. You cannot summarize accounting entries when you use this kind of transfer mode. In previous releases, posting was always performed synchronously. Scheduled batch – Transfer source document subledger journal entries to the general journal by using a scheduled batch. You can then summarize the entries in the Summarize accounting entries field.
Summarize accounting entries	Select whether to summarize accounting entries. Journal entries can be summarized across documents of the same type when the journal entries have the same dates, posting types, currency, and ledger accounts. If you selected Synchronous in the Transfer mode field, No is displayed.
Notification group	Select the user group who receives notifications when there are errors during transfers.
Minimum invoice amount	Enter the minimum invoice amount that withholding tax is calculated for. The minimum invoice amount is THB 1000. Note (THA) This control is available only to legal entities whose primary address is in Thailand.
Enable Zakat reports	Select this check box to enable Zakat report generation. Note (SAU) This control is available only to legal entities whose primary address is in Saudi Arabia.
Zakat provisions	Select a Zakat provisions account that has a Balance sheet main account type for the closing entry. This field is available only if you select the Enable Zakat reports check box. Note (SAU) This control is available only to legal entities whose primary address is in Saudi Arabia.
Zakat expense	Select a Zakat expense account that has a Profit and loss main account type for the closing entry. This field is available only if you select the Enable Zakat reports check box. Note (SAU) This control is available only to legal entities whose primary address is in Saudi Arabia.