Article

Best Practices for Deploying Microsoft Dynamics AX Opening Balances

by Mohamed Aamer
Escalation Engineer, Microsoft,

When a company migrates to Microsoft Dynamics AX from a legacy ERP solution, one of the important data migration tasks is the creating opening balances in the new Dynamics AX system based on the closing balances of the previous closed period (often the fiscal year) from the legacy system. 

In order to ensure accuracy in your Dynamics AX opening balances, it is important to take a systematic approach to the process of planning, designing, and executing the migration of data for trial balances and sub-ledgers, as well as validation and reconciliation of these elements along with general ledger, sub ledger, and financial dimensions.  In this article I will lay out the process and the elements involved in creating new opening balances in MS Dynamics AX coming from a legacy system.

The opening balances elements are:

  • Trial balance
    The trial balances (General ledger accounts) consist of the balance accounts that move their balances from one year to another, and profit and loss accounts which represent the income statement results and do not move to another year.
  • Sub ledger
    The sub ledgers are fixed assets, banks, vendors, customers, and items. The sub ledgers are linked to the chart of accounts through the posting profile setup.
  • Validation and reconciliation
    The balance of sub ledgers (fixed assets, banks, vendors, customers, and items) must represent the balance of general ledger accounts (trial balance), with respect to the financial dimensions (business units, department, and purpose) balance in case it is used through sub modules. The controllership and financial consultants should finalize and validate the design and deployment of financial dimensions or the dimension hierarchy set. 

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Accounting Data Migration Dynamics AX Financial Management
About Mohamed Aamer
Mohamed has been working since 2004 as a Business Applications Consultant. His main focus is customizing business applications to fit customer needs. He spends time understanding the customer business cycles, and solves the customer business pains through a combination of business process re-engineering and application customization. When not working on complex business processes, Mohamed blogs on Microsoft Dynamics AX, plays soccer and attends live Sufi shows.
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