Opening entries - suspense account

gete

Dear Folks,



I searched the fourms to update the opening entries

Here i need to know one thing what is the best way to update the opening entries.

Is it the best way to create the suspense account or Not.

Because i have seen in these forums many experts are not recommended to create the suspense account.

so my doubt is how can i update the debit or credit in chart of account with out suspense account.

EX :

i need to update the opening stock through item journal

when i update the stock then automatically two accounts will effect.

1. Inventoy - Debit

2. Inevntory adjustment - credit

here my doubt is do i need to take the actal invenoty adjustment account or Suspense account to update the credit .

same as when it comes to customer opening

Customer = credit

then which account i need to take to update the Debit .

is it sales account or suspense account.

so share your experience regarding this opening entries

kapil4dynamics

Without suspense :

U will have on e.g. on General journal line customer Dr and balance by its posting Gr's receivables account, for inventory from item journal item but the balancing account will be it's posting gr's inventory account for this purpose only (instead of inventory adjustment a/c which is normal for the transaction) in inventory posting setup.

This is done when when u r posting ur trial separately.

Suspense Account

In this Dr customer balanced by suspense, Dr Inventory balanced by suspense (this specifies that ur inventory adjustment account is replaced for time being by suspense account). This is used more for reconciliation purposes, both of them make sense but it is on your client's approach, though both of them shud be suggested.
Though i agree to some posts in forum which says do not create suspense account if u don't have any such thing in COA of customer. But using this makes sense sometimes (most of the times when client is using some broken system with broken process) u can see this

http://dynamicsuser.net/blogs/alexchow/ ... lance.aspx

but is applicable where u have issues in balancing.

Again i wud say it depends on situation (per system, per client etc etc) , e.g. Ax in COA itself u can have a account termed as opening balance account.

Alex_Chow

Suspense account is only recommended for inventory.

Opening A/R and A/P should not need a suspense account. Make your clients balance out their A/R and A/P before you do the conversion.

ssingla

Alex Chow wrote:

Suspense account is only recommended for inventory.

Opening A/R and A/P should not need a suspense account. Make your clients balance out their A/R and A/P before you do the conversion.

Ideal scenario but I have experienced a lot of mess due to non balancing. The major benefit with suspense account is that it brings a moral check that some entries/rectification needs to be posted.

hansika

Hi experts,


can i know how many ways i can update the opening balances .

Because

David Singleton wrote:

There are many different ways to post opening entries, and its not really possible to say "this is the correct way to do it". In fact the different processes really have nothing to do with Navision, they are general business issues.

posting.php?mode=quote&f=23&p=169939


please throw some use ful information .

gete

David Singleton wrote:

Whilst a suspense or take on account is not recommended,

posting.php?mode=quote&f=23&p=170064

Then which is the best option.

AdamRoue

There are two options to create the opening entries manually and automatically.

The many options comes from how they are approached, this depends on the legacy system, the requirement and how the new system is configured.

What would you like me to do detail every file I have ever converted and why on NAV implementations? Basically do they want detail behind the balance or a balance? Then how many transactions are there, so it is manual or automatic, then what are the data comparisions. Each take on is different, but the constituent elements have similarities.

As for it is not recommended to have a data take on account this depends really, and the quote states "Whilst it is not recommended. . . . . .". You need to be aware of the options and how what the customer wants can be achieved, talk to them about it, they should come up with what they feel is the best solution for them given the input and output, although if you think they are wrong obviously discuss it with them!

Alex_Chow

ssingla wrote:

Alex Chow wrote:

Suspense account is only recommended for inventory.

Opening A/R and A/P should not need a suspense account. Make your clients balance out their A/R and A/P before you do the conversion.

Ideal scenario but I have experienced a lot of mess due to non balancing. The major benefit with suspense account is that it brings a moral check that some entries/rectification needs to be posted.

If the A/R and A/P doesn't balance in their old system, I will always insist they make the proper adjusting entries in the old system before the conversion.

gete

AdamRoue wrote:

There are two options to create the opening entries manually and automatically. !

Thanks Steven,
It could be better if u explain about the two methods .

Please share your valuable experience

AdamRoue

gete wrote:

Thanks Steven,
It could be better if u explain about the two methods .

Please share your valuable experience

Manually would be where you take the appropriate form or journal and key the entries directly in. For example the opening GL could be 100 lines, so key it into a general journal and post it.

Automatically would be where the legacy system produces a file in a format and you either convert this file, or take it as it is and create a dataport to use the base information and set some defaults or formulas for fields not in use and bring these into the tables for static records and into the pre-posting stage for the dynamic records, and then post them to ensure they are validated by NAV.

gete

David Singleton wrote:

There are many different ways to post opening entries, and its not really possible to say "this is the correct way to do it". In fact the different processes really have nothing to do with Navision, they are general business issues.

posting.php?mode=quote&f=23&p=169939


please throw some use ful information


Could any expert explain what is the actual meaning of There are many different ways to post opening entries,


Please throw some use ful information on this.

Alex_Chow

All information given is useful.

Not using the useful information given is your problem.