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Do you want to prepare Financial Statements including GAAP Adjustments or TAX Adjustments?
This can easily be accomplished with out of the box features.
Assumptions:
You are using D365 Financial Reporter.
You do not want to use posting layer
Question:
How can I do this if a Legal Entity [LE], (setup = Use for Consolidations) does not allow manual journals to be posted?
Answer:
Use a LE (setup = Use for Eliminations. This type of LE allows 'fixed' elimination rules that mimic functionality of General Journals, just with different setup and posting steps.
Exhibit: GAAP and TAX Consolidation diagrams
Attn: Color Legend on left
1. Setup
Create Legal Entities for GAAP and TAX:
Note: LE naming convention is for illustrative purposes.
"X" prefix to sort to bottom of a LE selection list.
"T" prefix to denote 'TAX'
Contains:
"C" = Consolidations
"E" = Eliminations
"A" = Adjustments
GAAP
XC01 GAAP Consolidations (Gold)
XE01 GAAP Eliminations (Dark Gray)
XA01 GAAP Adjustments (Light Gray
TAX
TC01 TAX Consolidations (Gold)
TA01 TAX Adjustments (Light Gray)
Individually select the Elimination and Adjustment LE's and repeat the following setup:
Organization administration > Organizations > Legal Entities > [select LE] > General (tab) > Use for financial elimination process = YES
2. Adjustment Journals
Process your manual adjustments in the Adjustment LE's.
You will probably want to used 'Fixed' elimination rules to mimic manual General Journals.
Option: If applicable you may also use "Net change" elimination rules to mimic General Journals.
See my earlier blog for steps to process elimination journals.
3. Reporting
Use D365 Financial Reporter to create Financial Report Definitions with different LE's to support GAAP or TAX basis reports. Include the applicable LE's as diagramed above.
Consolidated Balance Sheet (GAAP)
Consolidated Cash Flow (GAAP)
Consolidated Income Statement (GAAP)
Consolidated Balance Sheet (TAX)
Consolidated Cash Flow (TAX)
Consolidated Income Statement (TAX)
Additionally, you can create 'Consolidating' Financial Reports in Financial Reporter tool by using either 'Column' or 'Tree' setups to illuminate the child LE's whether they are operational or elimination type LE's.
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