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Monday, June 2, 2014

What and how: Configuring Account structures.

What are Account structures?
Account structures can be defined as a correct combination of valid accounts and financial dimension values, based on the requirement. This also includes setting up rules to specify how the accounts and dimension are related.
Just to give you the background, whenever we post a transaction in Dynamics AX, the accounting is done in the Main Account, however the accounting can also be done in several financial dimensions. And the Account structure allows us to define valid combinations of main account and financial dimensions.
 
Configure account structures form (in Ax2012):
The "Configure account structures" form is used to create the Account structures. As mentioned above, Account structures consists of 'Main Accounts' and can include 'financial dimension' segments. So in this form, we need to define the valid combinations, which together with the main accounts, form (become) a Chart of Accounts (COA)
 
In the "Configure account structures" form, the whole account structures can be viewed in the below ways.
  • Horizontally - View the columns that show the dimensions that make up the structure.
  • Vertically - View the hierarchical visualization of the rules that describe how the combinations behave.
So by setting up the correct combinations of multiple account structures in this form, we can track information for specific accounts without affecting the information in other accounts.

Path: General Ledger > Setup > Chart of account > Configure account structure
 


Account structure elements: (showed in the above snapshot)
  1. Active account structure
  2. Draft account structure
  3. Account structure segment
  4. Filter button
  5. "Add segment" button
  6. Action menu
  7. "Add %1 note" button
 
Below are some Account Structure terms and definitions.
  • Account structure: A structure that defines the valid combinations of main account and dimension values.
  • Segment: is each column in the Configure account structures form. Segments consist of main accounts or financial dimensions.
  • Filter button: A button that opens the 'Which values are allowed for the %1 field' form, where you can specify the values that are allowed for each segment.
  • Action menu: A menu icon that is displayed next to segment rows. Click the Action menu to set active dates and to copy, paste, delete, or move segments.
  • Combination: The arrangement of account segments, advanced rules, and criteria.
  • Advanced rule: A relationship principle that helps make sure that dimension values are entered correctly, and are filtered and validated according to the dimension structure. Advanced rules are defined for each account structure.
  • Financial dimension: An attribute that additionally defines an entity. Financial dimensions are basically data classifiers that are used for financial reporting. Financial dimensions identify information such as the purpose, cost center, and department.
  • Ledger account: The combination of main account and other dimension values, as defined by the chart of accounts, and which classifies financial activity.
  • Main account: The type of record—asset, liability, revenue, expense, or owner’s equity—that is used for recording individual transactions in an accounting system.
 
 The above information provides quite basic information and guidance of where you can locate the form and what do various terminology and elements mean. Below are few links which you can browse for more details information on the Account structures functionality.
  • For More details about "Configuring Account structures" and examples to work with: Click here
  • For More details about: Planning your "Chart of accounts" in AX 2012
Good luck. 
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