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*NEW* in Microsoft Dynamics GP 2010 is a feature called ‘Reporting Ledgers’ that provides three separate General ledgers in each company database:

· Base – What you use today

· Local, and

· IFRS – International Financial Reporting Standards, “Coming soon to a Country near you!”

Organizations that maintain their books and records on an Accrual base but pay taxes on a Cash Basis often make quarterly adjustments to create a Cash Basis report.  This is typically performed using separate accounts and/or a GP company database.  The results are combined in FRx to create Cash Basis reports.

Consider using the ‘Local’ Reporting Ledger in Dynamics GP 2010 for Cash Basis adjusting entries.  The new Management Reporter application (replaced FRx) supports Reporting Ledgers allowing for the consolidation of all three ledgers to produce the required financial statements, in this situation, a Cash Basis Financial Statement.

Also see Transfer Pricing and other adjustments using Dynamics GP 2010 Reporting Ledgers .

*NEW* in Microsoft Dynamics GP 2010 is a feature called ‘Reporting Ledgers’ that provides three separate General ledgers in each company database:

· Base – What you use today

· Local – Per the available literature this is for “Non-GAAP” entries, whatever that means

· IFRS – International Financial Reporting Standards, “Coming soon to a Country near you!”

Before GP 2010, separate account numbers and/or separate GP company databases were used to record non-management reporting entries such as Transfer Pricing, Tax, and Prior Year adjustments.  The idea is to keep these entries from effecting the financial reports used by Management.

In GP2010 you now have three ledgers to post GJ entries, Base, Local, and IFRS!  So what’s the big deal about Reporting Ledgers in GP 2010?  How might you use this feature?

Let’s say you don’t have a need for a “Local” ledger because you follow GAAP (as opposed to GUAP, Generally Unaccepted Accounting Principles) and “IFRS”, while great bedtime reading for us CPAs, is not relevant to your organization, yet!  FYI – there are hundreds of blogs on “IFRS” that say nothing about the type of entries that would require a separate ledger (can’t wait to see these entries).  You can utilize these additional ledgers for all entries that need to be separated from Management’s Financial Statements.

If you use separate account numbers or a separate GP company to record transactions without changing Management’s Financial Statements (the ones you use to run your company), you might be a Reporting Ledger user!

· Tax Adjustments

· Transfer Pricing

· Prior year adjustments maintained separate from Management Reporting

Management Reporter (replaced FRx) allows you to separate each ledger in a Column or Row format for separate financial reporting.  This is the same as using separate companies in an FRx report to combine two ledgers, only now you don’t need the separate GP company.  Note:  Management Reporter is scheduled to support Multicurrency in a Service Pack later this year.

Before you get too carried away and imagine using intercompany transactions to a separate ledgers across companies, Intercompany Transactions do not support Reporting Ledgers. As soon as you select the Intercompany checkbox in the GL transaction window, the Reporting Ledger dropdown grays out and defaults to the Base ledger. Still, a net one step forward!

Also see, Cash Basis adjustments using Dynamics GP 2010 Reporting Ledgers