If an entity has multiple legal entities and wishes to use a common chart of accounts and dimensions, but not all accounts/dimensions should be available for each entity, these items may be suspended from use by a legal entity. If your legal entities need to have different charts of accounts or account structures, the legal entity replacement feature may be useful. By using the same chart of accounts and account structures for multiple legal entities, and then managing all legal entity replacement exceptions, you can simplify maintenance over time. I agree with Ramit. In AX7, enterprise-specific configurations are performed on a master account on the Legal Entity Overrides tab. Each legal entity in Dynamics 365 Finance can be configured to use one or more account structures. Each account structure defines the financial dimensions and combinations of main and financial accounts that are allowed when transactions are recorded. You can use the same account structures in multiple legal entities. For each legal entity in Microsoft Dynamics 365 Finance, the ledger account details must be configured. On the General Account page, you can select the chart of accounts and account structure that will be used for the selected legal entity. You can share your chart of accounts and account structures by configuring the G/L page of each legal entity to use the same chart of accounts and account structures. You can also share part of the configuration in each legal entity and have specific configurations in each legal entity. In this section, you can also limit the dimensions available for this account number and legal entity.
This differs from a standard dimension as it can be defined as a fixed dimension that replaces any input at the time of booking. We may also assign sales tax rules and cash flow forecasting rules by legal entity for specific accounts. If you use an element to import data and that element imports dimensions, the derived dimension rules are applied when importing, unless the element explicitly overrides those dimensions. Before you configure financial dimensions as legal entities, evaluate your business processes in the following areas to determine if this configuration works for your organization: An example would be bank accounts that are only available to a legal entity but are in the shared account structure. To restrict legal entities, select the account and in the second section of the account setup, you will find overrides for legal entities. Select Add and the legal entities you do NOT want to use this account. Put a check mark in the lock box and now this legal entity does not have the specific account as an option to choose and use. You can also activate an account for a certain period of time during which it is available to the legal entity, below you can see that it will then be blocked after June 30. A similar feature is in dimensions, this area allows you to pause or limit one dimension per legal entity, but does not have the additional options Standard dimensions, assignment conditions, VAT, or cash flow forecast. Use the Financial Dimensions page to create financial dimensions that you can use as account segments for chart of accounts. There are two types of financial dimensions: custom dimensions and entity-driven dimensions. Custom dimensions are shared by legal entities, and values are entered and managed by users.
For entity-based dimensions, values are defined elsewhere in the system, such as Customers or Store entities. Some entity-based dimensions are shared by legal entities, while other entity-based dimensions are company-specific. To set up the chart of accounts for a legal entity, go to the Set up the ledger account > > the ledger account. On the General Account page, select Chart of Accounts, and then select the chart of accounts that you want to use from the list. Note that the chart of accounts cannot be modified after you select a value and post transactions in the legal entity. Note that if you have multiple account structures, you can only select account structures that do not have combinations of main accounts and overlapping financial dimensions. For example, one of your account structures is configured to add a split for master accounts between 1000 and 1999. In another account structure, you added a financial dimension service for master accounts starting with 1. In this case, only one of the account structures can be added in the same legal entity. This article provides information about how to configure the ledger accounts for each legal entity.
It contains information about currency selection, fiscal calendars, chart of accounts, and account structures to be used with each legal entity. You can use financial dimensions to represent legal entities. You don`t need to create the legal entities in Dynamics 365 Finance. However, the financial dimensions are not designed to meet the operational or business needs of legal entities. Finance`s cross-unit accounting feature is designed to include only the accounting entries created by each transaction. To configure account structures for your accounting, on the Ledger page, on the Account structures FastTab, choose Add, select an account structure from the list, and then choose Select. It may take a few minutes to add and save account structures. Note that the selected account structures must be active. Otherwise, the details of the account structures in the legal entities to which they are linked will not be effective. When I sign in to Contoso environments, the legal entity replacement in the master account list is empty, but all companies can see all accounts.
In other environments where I work, I see that accounts can`t be used if I don`t add legal entities to the legal entity replacement for each account. Does anyone know the logic behind this? Thank you! To select the calendar, select Fiscal calendar, and then select the calendar from the list. If you change the fiscal calendar after transactions have been posted to the legal entity, you must select Recalculate accounting periods. You can then use the dialog box that appears to update the balancing items for the periods on your calendar. It is recommended that you run the Recalculate Accounting Periods process in batch mode and run it when non-critical processes occur in your system. Depending on the number of transactions and combinations of financial dimensions, this process may take some time. If the legal entity is suspended at the dimension level, it no longer appears in that entity`s drop-down list. This feature is ideal when departments don`t cross legal entities and multiple people in each organization need to work with accounts and accounting dimensions. This reduces what users see and any confusion in what is in their choices.
