Enabling this option brings two key changes to strengthen the link between ledger settlement and year-end close processes. Firstly, ledger settled transactions will be excluded from the Opening balances of the next fiscal year during year-end close. This ensures that only unsettled beginning balance transactions are subject to foreign currency revaluation in the new fiscal year. As ledger settled transactions are excluded from year-end close, cross-account or cross-fiscal year ledger settlement isn't possible.
Secondly, the feature offers an option to retain transaction details in Opening balances for balance sheet accounts designated for ledger settlement in General Ledger parameters. Selecting this option maintains unsettled transactions in the closing fiscal year, creating copies of each detailed, unsettled transaction as beginning balance transactions in the new fiscal year. Details such as ledger accounts, amounts, and descriptions are copied to these new transactions and posted as Opening balances.
Before 10.0.45
Imagine you have the following ledger transactions in 2024:
Date Account Debit Credit Voucher Comment
15-Dec-24 141000 AR 1,000 V123 Customer invoice
20-Dec-24 141000 AR 600 V124 Customer payment
The invoice was partially paid (only 600 of 1,000).
You run Ledger settlement in December and settle the 600 against the invoice. That leaves 400 still open.
At year-end close (31-Dec-24), the system should:
- Carry forward 400 as opening balance in 2025 (unsettled portion).
- Recognize that 600 was settled and does not roll forward incorrectly.
Before update: The validation process didn’t always check whether partial settlements might cause “out-of-balance” situations, especially if you had cross-year settlements or detailed carry-forward enabled. Errors might only appear after the close.
2-Ledger settlements audit trail includes Description and Reason:
In version 10.0.45, on the Ledger settlements page, two new or enhanced audit-oriented fields are included:
- Description: shows the description from the original transaction (i.e. the description on the voucher or ledger line). Microsoft Learn
- Reason: shows the comment entered at the time of the ledger settlement (i.e. the user’s reason or note when performing the settlement). Microsoft Learn
These two columns (Description and Reason) are also included on the
Ledger settlements inquiry page, so that when doing audits or reviewing past settlements, you can see both the original transaction context (via description) and the settlement rationale (via reason).
Microsoft Learn
Behind the scenes, Microsoft also introduced LedgerTransSettlementEntity V2 (a new data entity) to support export/import of partial ledger settlements, with support for a “marked” column, etc.
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Regards,
Syed Haris Shah
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