- July 3, 2023
- Posted by: Mustafa Chohan
- Category: Finance & accounting
When it comes to working in Microsoft Dynamics 365 Finance & Operations, one would know that finance posting plays an important part in the accounting process. Whenever financial transactions occur within the system in the form of sales, purchases or any expense that has been incurred, they need to be recorded and shown accurately in the organization’s financial statements. A user can automate this process to ensure accurate and efficient financial postings in Microsoft Dynamics 365 Finance and Operations.
Financial posting in Microsoft Dynamics 365 Finance & Operations
Following are the key points to consider while doing the financial posting in Microsoft Dynamics 365 Finance & Operations:
Chart of Accounts
The key elements in Microsoft Dynamics 365 Finance are the Chart of Accounts. It helps in defining the structure and organization of accounts which will be used for financial reporting. The items included in this list are assets, liabilities, capital, revenues, and expenditures.
The central repository for all financial transactions is called General Ledger (GL) in Microsoft Dynamics 365 Finance & Operations. This helps in maintaining a record for each transaction and their impact on all the accounts. With the help of General Ledger in Microsoft Dynamics 365 Finance & Operations, the user can have a complete view of the financial position and performance of the organization.
The third factor for managing financial posting is that of Sub-ledgers. This is used to track specific types of transactions, this may include the sales to customer, Purchases from Vendor, or your daily cash flow management. Sub-ledger transactions help in capturing the details of these transactions. They help with managing relevant accounts, their amounts, date of a transaction and references of payments.
Validates the Accuracy
Vouchers play an integral part in Subledger, they are the collection of related transactions which are ready to be posted in General Ledgers. These Vouchers in Microsoft Dynamics 365 Finance & Operations serve as an area which can be held and reviewed within the organization before posting it onto General Ledger. They help to safeguard that all the transactions are complete and validates the accuracy before being posted in the financial Statements.
Journal Entries are another way of posting the transactions to the General Ledger. Once the vouchers are received and reviewed by the user and approved, Journal Entries are created, these entries show the summary on the impact of various transactions on specific accounts in the Chart of Accounts.
The process of updating the General Ledger with the Journal Entries highlighted in the Voucher is referred to as posting. In Microsoft Dynamics 365 Finance & Operations, the user is able to execute real-time postings and also is able to schedule batch posting according to the need of your organization. In the case of real-time posting, General Ledger Accounts gets updated immediately, while for the batch posting user can accumulate transactions and post them in the controlled manner.
Once the process of posting has been completed, User can easily generate Financial Statements, these statements include Balance Sheets, Income Statements and Cash Flow Statements.
Microsoft Dynamics 365 Finance and Operations has the capabilities to automatically do the financial postings and provide an accurate output. It is consistent and is known to be compliant with accounting principles and regulations. With the help of financial posting user can have access to a comprehensive auditing and reporting features which allows a user to track and analyze financial data efficiently and effectively.