Convert to other accounting systems


Updated: November 1, 2016

Applies To: Dynamics Marketing


Microsoft Dynamics Marketing is scheduled to be retired on May 15, 2018. After that date the service will no longer be available. Please plan accordingly. For details, see the blog post Microsoft Dynamics Marketing service will be discontinued, and learn what’s coming next.

Conversion is the process of changing from one accounting system to another accounting system.

Conversion versus running parallel: It is possible to run Microsoft Dynamics Marketing and your existing system in parallel, but running in parallel is very difficult and time consuming. It’s better to run test transactions in Microsoft Dynamics Marketing until you are comfortable with its working.

Converting historical information: Converting all your historical data from your old system is similar to running in parallel, with additional complexity. More information: Contact technical support for Microsoft Dynamics Marketing

1. Pick an appropriate date

It is much easier to convert at the end of a financial reporting period - at month-end, end-of-quarter or end-of-year. If you convert during a financial reporting period it will take extra effort to compile your financial reports for that period.

2. Get Microsoft Dynamics Marketing ready

The accounting structures in the existing old system must be duplicated in Microsoft Dynamics Marketing:

  • Enter all the accounts in the old system's chart of accounts into Microsoft Dynamics Marketing.

  • Enter all the items and services from the old system into Microsoft Dynamics Marketing.

  • Enter all active clients, customers, vendors and employees into Microsoft Dynamics Marketing. More information: Site company

3. Get your existing accounting system ready

Get your financial records as up-to-date and accurate as possible:

  • Reconcile accounts through the end of the period.

  • Post accruals and any other adjusting entries.

  • Create one or more general ledger account to hold the balances you will transfer to Microsoft Dynamics Marketing. You will need to create one or more short term asset accounts and one or more short term liability accounts to balance the revenue, expenses, assets and liabilities you will transfer to Microsoft Dynamics Marketing. For example you may want to create a short term asset account called Assets Transferred to Microsoft Dynamics Marketing.

  • Print out copies of all invoices in Accounts Receivable and expenses in Accounts Payable.

  • Be sure to consult your accountant. They may have specific recommendations that will facilitate the conversion effort and the filing of tax returns and other government reports.

 4. Enter any open transactions in Microsoft Dynamics Marketing

In Microsoft Dynamics Marketing reenter:

  • Any expenses to be paid

  • Invoices awaiting receipts

  • Credits owed to clients

  • Credits due from vendors

5. Make adjustment entries in your existing accounting system

Clear the balance of every account in QuickBooks, except Retained Earnings. For example, if your bank account has a $10,000 balance; create a $10,000 journal entry in the bank account and an offsetting $10,000 entry in the account you set up in Step 3. When you are done, this account is the only one in QuickBooks with a non-zero balance except Retained Earnings.

What about Retained Earnings? Microsoft Dynamics Marketing will automatically calculate Retained Earnings for you.

6. Make the opposite entries in Microsoft Dynamics Marketing

Make starting balance entries in every account in Microsoft Dynamics Marketing that are the opposite of the ones you made to clear the balance of the account in the old accounting system.  For example, if your bank account had a $10,000 balance in the old system; create a $10,000 debit in the bank account in Microsoft Dynamics Marketing and an offsetting $10,000 credit in the assets transferred to Microsoft Dynamics Marketing account.

7. Reconcile

When you have made all the balancing entries, the balances in the general ledger of Microsoft Dynamics Marketing should match the balances in the old accounting system.