Yes
The purpose of this approach is to make sure the sub-ledgers are fully reconciled to the general ledger when going live with the system.
In theory, all balances (trial balance, open AP, open AR etc.) should come fully matching and reconciling but in reality very often this is not the case.
This method pushes the differences, if they exist, into the "clearing" ledger accounts, where they can be handled/researched/resolved at a later time, instead of holding the go-live until fixed.
You do not HAVE to do it that way, but in my experience most customers, when explained the alternatives and the shortcoming/advantage of each option, choose this option.
I usually use a slight variation of this approach - where I pre-re-map the trial balance into the conversion accounts, hence I do not need to re-classing the trial balance into the conversion accounts as a separate journal.
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Zvika Rimalt
Functional Consultant
Vancouver BC
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Original Message:
Sent: Dec 31, 2020 01:44 PM
From: Daniel Zook
Subject: Best practice for migrating financial balances, including historic trial balances
I found this article titled How to Migrate Financial Balances to Dynamics 365/AX: A Step-by-Step Guide, and I would like to know if the process detailed there follows best practices for migrating balances from a legacy system, or if I should take a different tack.
To summarize:
- Create "conversion" G/L accounts
- Open months from beginning of year to today
- Post trial balances month by month up to the current month-end.
- Post reclassifying entry to zero out the accounts (using conversion accounts)
- Post details to the subledgers, offset by the conversion accounts.
Thanks for any advice.
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Daniel Zook
Director of IT
Lehman's
Dalton OH
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