Handle open transactions
Open transactions are defined as the unpaid and partly-settled invoices, both from customers and from vendors, that exist prior to your migration to Microsoft Dynamics AX. How you deal with open transactions during the planning and implementation phase depends ultimately on your customer or user requirements.
The following information provides you with a number of guidelines on how to handle open transactions. You may be required to transfer more information or less information when handling open transactions, depending on local accounting rules. In addition, because the transactions were not created in Microsoft Dynamics AX l you lose all historical references to transactions.
Consider the following when you work with open transactions:
Since handling open transaction must be done manually, try to minimize the number of open transactions you must work on before migrating to Microsoft Dynamics AX. To do this, settle as many accounts receivable and accounts payable as possible before transferring transactions.
Partly-settled invoices should indicate only:
The original total amount, presented in a text string
The current open balance.
Create journals for customers and vendors, and Enter open transactions using one line for each unsettled invoice by:
Pointing directly at the Accounts Receivable/Accounts Payable (AR/AP) accounts, and
Specifying the AR/AP ledger control account respectively as the offset account.
This allows each journal line to be balanced and the net AR/AP ledger control account posting to be zero.
This method requires your General Ledger opening balance to include the control account totals.