Learning Path 2: Learn the fundamentals of Microsoft Dynamics 365 Finance

Module 2: Describe general ledgers

Lab 2.1: Create a main account

Lab Setup

• Estimated Time: 5 minutes

Objective

In this lab, you will perform the following activities:

1. Create a legal entity.

2. Create a fiscal calendar.

3. Create a chart of accounts.

4. Create main accounts in the chart of accounts.

5. Create an operating unit of type department and cost center.

6. Create an accounting structure by using the main accounts and cost centers.

7. Configure the ledger.

Lab steps

Create a legal entity

1. In the left navigation pane of Dynamics 365 Finance, select Modules > Organization administration > Organizations > Legal entities.

2. On the Legal entities page, select the New button in the action pane to create a new legal entity, and enter the following information:

   • Name: Contoso Demo Systems

   • Company: CDS

   • Country/region: USA

3. Select OK at the bottom.

Create a fiscal calendar

1. In the left navigation pane of Dynamics 365 Finance, select Modules > General ledger > Calendars > Fiscal calendars.

2. On the Fiscal calendar page, select the New calendar button in the action pane to create a new fiscal calendar, and enter the following information:

   • Calendar: CDS

   • Description: Demo systems calendar

   • Start of fiscal year: 9/30/2024

   • End of fiscal year: 10/1/2025

   • Fiscal year name: 2024-25

   • Length of period: 1

   • Unit: Months

3. Select the Create button.

The system will generate 14 periods, including one opening and one closing period and 12 periods for 12 months.

Create a chart of accounts

1. In the left navigation pane of Dynamics 365 Finance, select Modules > General ledger > Chart of accounts > Accounts > Chart of accounts.

2. On the Chart of accounts page, select the New button in the action pane to create a new chart of accounts, and enter the following information:

   • Charts of accounts: Demo systems

   • Description: Contoso demo systems

3. Select the New button on the Main accounts FastTab to create main accounts with the following values:

   • Main account: 1000

   • Name: Cash

   • Main account type: Balance sheet

   • Main account category: CASH

   • DB/CR default: Debit

4. Create another main account:

   • Main account: 3000

   • Name: Revenue

   • Main account type: Revenue

   • Main account category: REV

   • DB/CR default: Credit

5. Create another main account:

   • Main account: 6000

   • Name: Travel expense

   • Main account type: Expense

   • Main account category: EXP

   • DB/CR default: Debit

Create an operating unit

1. Navigate to Modules > Organization administration > Organizations > Operating units.

2. In the action pane, select the New button followed by the Department operating unit type and enter following the following value:

   • Name: CDS_Training

3. In the action pane, select the New button followed by the Cost center operating unit type and enter following value:

   • Name: CDS_Purchase

4. Add two more cost centers: CDS_IT and CDS_Admin.

Create an accounting structure

1. On the Finance and Operations Home page, in the upper right, verify you are working with the CDS company.

2. If necessary, select the company, and from the menu, select CDS.

3. In the left navigation pane of Dynamics 365 Finance, select Modules > General ledger > Chart of accounts > Structures > Configure account structures.

4. In the action pane, select the New button to create a new account structure with the following values:

   • Account structure: CDS_BS

   • Description: CDS Balance sheet

   • Add main account: YES

5. Select the Create button.

6. On the Segments and allowed values FastTab, select the Add button to add Main Account range 1000..2999.

7. Select the Activate button in the action pane followed by the Activate button in the batch processing dialog.

8. In the action pane of the Account structures page, select the New button to create another account structure with the following values:

   • Account structure: CDS_Revenue

   • Description: CDS Revenue

   • Add main account: YES

9. Select the Create button.

10. On the Segments and allowed values FastTab, select the Add button to add Main Account range 3000..5999.

11. Select the Activate button in the action pane followed by the Activate button in the batch processing dialog.

12. In the action pane of the Account structures page, select the New button to create another account structure with the following values:

    • Account structure: CDS_Expense

    • Description: CDS Expense

    • Add main account: YES

13. Select the Create button.

14. On the Segments and allowed values FastTab, select the Add button to add Main Account range 6000..9999.

15. Select the Add Segment button on the Segments and allowed values FastTab

16. In the Add segment dialog, select CostCenter followed by the Add segment button.

17. In the CostCenter field, enter 253..255.

18. Select the Activate button in the action pane followed by the Activate button in the batch processing dialog.

Configure the ledger

1. On the Finance and Operations Home page, in the upper right, verify you are working with the CDS company.

2. If necessary, select the company, and from the menu, select CDS.

3. In the left navigation pane of Dynamics 365 Finance, select Modules > General ledger > Ledger setup > Ledger page and configure the following:

   • Chart of accounts: Demo systems

   • Fiscal calendar: CDS

   • Accounting currency: USD

   • Reporting currency: USD

   • Accounting currency exchange rate type: Default

   • Budget exchange rate type: Budget

4. On the Account structure FastTab, select the Add button to add the account structure CDS_BS.

If Required, Select Yes for Adding an account structure.

1. Add two more account structures: CDS_Revenue and CDS_Expense.

This completes the basic configuration of the General ledger module. You can plan your journal configuration now to post journals.