People always wonder what is a ledger settlement, why is this useful, how does one know if the ledger has been settled or not, what happens if the ledger is settled? I'd like to share what I have worked on, with respect to this functionality.
The definition of ledger settlement given in the AX documents is very simple -This is a periodic task done weekly, monthly, quarterly, depending on the needs of every organization. It is definitely useful to reconcile the debits and the credits of a given account or between the given accounts. It is useful for the accruals and the clearing entries but in general can be applied for all transactions in the general ledger.
How this works in AX and why is it useful?
When you go to the ledger settlement form in the general ledger periodic and open the form it will list you all the open journal entries in that form. You need to select the account and settle it against the same or the other ledger account. Once you include them you need to ensure the debits and credits match, the balance becomes zero. At this point, the Accept button is 'enabled' and you can accept the ledger settlements.
What happens once you accept the settlements?
You can check in the General Ledger >>common>>Main account. In the action pane click on - posted to open the Account number form,a checkbox called show open only can be viewed; on marking this you can see only the open transaction,you have the Ledger settlements button click to open ledger settlement form;This will display all the settled transactions. If you want to cancel the settlement for that ledger mark the record and click cancel this will reverse the Ledger settlement, if cancelled - the transaction will be open and will be available for settlement again.
Important ! - Note that, when a ledger is settled there will be no impact to the ledger balances, but these transactions will not be available for revaluation in case you are doing a currency revaluation.