Microsoft Dynamics NAV for Beginners | Part 8: Recurring Methods

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BDO

Do you have entries for which you are manually keying in the same amount each month? Recurring journals in Microsoft Dynamics NAV are great for transactions that are posted frequently with few or no changes.

Let’s first discuss the different recurring methods which determine how the amount on the journal line is treated after posting.

Fixed is used when the amount is the same each period. For example, a prepaid insurance premium may be a fixed amount.

Variable is used when the amount is different each month. The amount on the journal line is deleted after the recurring journal is posted. Use this for recording regular sales if sales documents are not used.

Balance is used when the balance of the account is allocated among the amounts specified for the line on the Allocation page. The balance on the line is set to zero. You will need to fill in the Allocation % field in the Allocations page. You can use this method for periodic allocation of expense accounts between departments.

Reversing Fixed is used when the amount on the journal line remains unchanged after posting and reversing entry posts on the following day. This is great to set up for monthly accruals.

Reversing Variable is used when the amount on the journal line is deleted after posting and a reversing entry is posted the next day. You can use this for monthly accrual of an electrical invoice that is not received until the first week of the following month.

Reversing Balance is used when the balance of the account on the line is allocated among the accounts specified for the line on the Allocation page. The balance on the account is set to zero and a reversing entry is posted the following day. In this example, the allocations are temporary because they are only an estimate for periodic reporting.

In your recurring journal lines you can set up expiration dates to limit the posting period by specifying the last due date that an entry can be repeated. The line will not be posted after the date entered in the field.

If the field is blank, the line will be posted during each posting process until it is deleted from the journal.

How to Set Up A Recurring Payables Journal Template and Batch

  • In the navigation pane, click Departments.
  • Click Administration, and then click Application Setup.
  • On the Application Setup page, click Financial Management, then click General, and then click Journal Templates.
  • Click New.
  • In the Name field, enter RECPAY.
  • In the Description field, enter Recurring Payments Journal.
  • In the Type field, enter Payments.

Microsoft Dynamics NAV for Beginners Part 8 Recurring Methods 1

  • Select the Recurring check box.
  • Leave the No. Series and Posting No. Series fields blank.
  • On the Navigate tab, click Batches.
  • In the Name field, enter RECURRING.
  • In the Description field, enter Recurring Payments Journal.
  • Close the General Journal Batches and the General Journal Template.

Recording Accruals with Recurring Journals

At the end of the month, you need to book an accrual entry for bank interest changes.

In the Recurring General Journal, select your recurring batch. In the recurring method, we will choose the reversing variable method.

  • In the Recurring Frequency field, enter 1M+CM.
  • In the Posting Date field, enter 02/28/14.
  • In the Document No. field, enter %4 Interest.
  • In the Account Type field, click the drop-down list and enter G/L Account.
  • In the Account No. field, enter 70100.

Microsoft Dynamics NAV for Beginners Part 8 Recurring Methods 2

  • In the Amount field, enter -200.00.
  • On the Navigate tab, click Allocations.
  • In the Account No. field, enter 1330.
  • In the Allocation % field, enter 100.
  • Click OK to close the Allocations page.
  • Notice that the Allocated Amt. field displays 200.00.
  • Change your work date to 02/28/14.
  • On the Home tab, click Post.
  • Click Yes to post the journal lines.
  • Click OK.

Review the lines remaining in the window:

Microsoft Dynamics NAV for Beginners Part 8 Recurring Methods 3

The Posting Date is now 03/31/14 and the Amount field is empty because the method is variable. The Allocated Amt. field displays the allocation amount.

Next week, we’ll discuss creating a Correcting Journal Entry in Microsoft Dynamics NAV. Stay tuned!

For more information, please contact your BDO Client Manager or Florence Singh and visit BDO Solutions. For more of our Beginners’ Guide to NAV series, click here.


Find out about the exciting enhancements in Microsoft Dynamics NAV!
Find out about the exciting enhancements in Microsoft Dynamics NAV!

 

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