How the D365 ledger object binds a legal entity to a chart of accounts, fiscal calendar and pair of currencies, what becomes immutable once transactions post, and an honest decision tree for choosing between a separate legal entity, a posting layer, a reporting currency, an extra dimension or a consolidation company when IFS's multi-book and group-consolidation practice must be reproduced.
Part 1 of this domain, Chart of Accounts and the Financial Dimension Model, decomposed the IFS Code String into a D365 main account plus financial dimensions inside a single ledger.
Every D365 legal entity has exactly one Ledger record, configured on the Ledger page, and it is the single place that ties together the constructs a finance team otherwise treats as separate.
Every ledger decision in the table above is far easier to change on day one than on day one hundred. Three facts are worth stating precisely because they are falsifiable and commonly discovered too late.
IFS supports running more than one Accounting Book inside a single Company: a primary statutory book in the base currency, and additional books carrying a group currency, a different reporting basis, or a divergent depreciation policy, all updated simultaneously at posting time.
Every posted line in D365 can carry up to three currency amounts, and only two of them are configured on the ledger itself.
Part 1 introduced the Open, On hold and Permanently closed period states carried per module per period on the ledger's fiscal calendar. This section covers what happens once every period in a fiscal year reaches that state and the year is actually closed.
D365 offers two live consolidation approaches rather than one. Consolidate online rolls daily balances, by main account and dimension, from source legal entities into a designated consolidation company.
The question every statutory requirement in this chapter eventually reduces to is the same one: given this requirement, do I use a separate legal entity, a posting layer, a reporting currency, an extra dimension, or a consolidation company? The following table is the working answer.
A group historically ran one IFS Company, NORDIC, with Sites for Norway, Sweden and Denmark, using parallel Accounting Books for local statutory currency reporting and a manual spreadsheet-based group consolidation.
The D365 ledger binds one legal entity to one chart of accounts, one fiscal calendar and exactly two configured currencies, and several of those choices are locked the moment the first transaction posts. IFS's multi-book and multi-company practice for statutory divergence does not map onto a single D365 feature;