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Using the Chart of Accounts

General Ledger is the central application area of Microsoft Dynamics NAV 2016 and is where financial information is stored:

  • Posted
  • Summarized
  • Reported

Two main components of the General Ledger application area are Chart of Accounts and G/L Budgets; The Chart of Accounts provides quick access to G/L accounts and balances, and the Budgets feature provides a comparison between actual amounts and budgeted amounts, by using a combination of:

  • G/L accounts
  • Periods
  • Global dimensions
  • Budget dimensions

Charts of Accounts Page

Each account in the Income Statement and the Balance Sheet is called a G/L Account, and all of the G/L Accounts makes the Chart of Accounts list. G/L Accounts is created in the Chart of Accounts list as a G/L Account Card. In the Chart of Accounts list, all G/L accounts are available and can be viewed at one time. However, there is also a G/L Account Card for each account that can be accessed from the Chart of Accounts list.

The Chart of Accounts page contains the same fields on the G/L Account Card page in a table format. In addition to the information on the individual account cards, the Chart of Accounts list displays the current Net Change and Balance information for the accounts.

If the account numbers are numeric only, with the Microsoft SQL Server, account numbers are sorted in ascending alphabetical order.

Therefore, care must be taken when setting up a numeric account number structure to make sure the correct ordering of accounts in the chart of accounts.

To open the chart of accounts page, follow these steps:

  1. In the Search field, type Chart of Accounts and then select the page from the drop-down list. Or, navigate to Departments > Financial Management > General Ledger > Lists > Chart of Accounts.
  2. Open an account card and on the Ribbon click Edit.
    The G/L Account card displays.


    GL_Account_Card.png

G/L Account Card Navigation

On the Ribbon, click Navigation, the following navigation groups are available:

Button Details
Account Group
Ledger Entries Display all ledger entries for the account.
Budget Ledger Entries Display all budget ledger entries for the account.
Comments Display or enter comments that relates to the account.
Dimensions Display or enter default dimensions for the account.
Extended Texts Display or enter extended text for the account.
Receivables-Payables Provides a summary of the following:
  • Expected net operational cash flow from customers and vendors over time.
  • Open customer and vendor ledger entries sorted by their Due Date instead of Posting Date.
Where-Used List Shows where else current account is used, example a bank account will be used on bank account posting groups for sub-ledger setup.
Dimension Combination Setup Shows where current account is used on Altus Dimension Combination.
Balance Group
G/L Account Balance Displays the balance or net change for the G/L account over time.
G/L Balance Displays the balance or net change for all G/L accounts for a specific time period.
G/L Balance by Dimensions Displays balance or net change information for all accounts.
General Group
General Posting Setup Displays the General Posting Setup page.
VAT Posting Setup Displays the Tax Posting page.
G/L Register Displays the G/L Register page.
Apply Template
Apply Template is available on Actions Ribbon when Master Templates are set up during the Rapid Implementation Methodology (RIM) process.

Master Templates for G/L Accounts provide the ability to:
  • Create multiple default G/L Account set ups for accounts that are frequently created, such as expenses.
  • Use these templates as a basis when creating accounts of this type.
  • Eliminate the need for repetitive data entry for similar account creation.

After creating accounts in the G/L Account card, the Indent Chart of Accounts function is run in the Chart of Accounts page to indent and structure the Chart of Accounts view.

The Indent Chart of Accounts function automatically updates or fills in the Totaling field for End-Total accounts instead of the user adding the numbers manually.

General FastTab

GL_account_general.png

The following describes the fields in the General FastTab:

Field Description
No.  The Chart of Accounts number of the G/L Account.
Name The Chart of Accounts name (description).
Short Name The Chart of Accounts short name.
Income/Balance Indicates whether the account is classified as an Income Statement of a Balance Sheet account. This field determines whether an account to be closed in the fiscal year end or not.
Debit/Credit Indicates the type of entries that will usually be posted to this account. The selection made does not restrict the type of transaction posted to the account.
Account Type This field indicated the purpose of the account in the different list, journals, and reports. The options are as follows:
  • Posting - The only account type where entries can be posted.
  • Heading - Used for description purposes only.
  • Total - Used to total the accounts ranged in the totaling field.
  • Begin-Total - Marks the beginning of an account range in the totaling field.
  • End-Total - Marks the end of an account range in the totaling field.
Totaling Determines the accounts to totaling from the Account Type Total window. This gives the option to totaling groups of accounts that are not in the same classification, such as Gross Income. The field also or the End-Total Account Type.
Type Determines the GL account type; options are Asset, Liability, Revenue or Expense
Category Identifies the G/L Account category.
Disable Budget Verification Add a checkmark to this option to disable budget verification for the current G/L account.
Disable Commitment Entries Add a checkmark to this option to disable commitment entries for the current G/L account.
New Page Determines whether a new report page is printed after the account is displayed in the report.
Search Name Used to search for a particular account when the account number cannot be recalled.
(Actual) Balance Displays current balance of the account. Click the balance amount to access the General Ledger Entries list.
Reconciliation Account Determines whether the G/L account is included in the Reconciliation list in the general journals. Use the Reconciliation list before posting to review the effect of posting the accounts in the journal.
Automatic Ext. Texts If selected, extended text set up on the accounts is automatically added to sales and purchase documentation in the Description field. If not selected, extended text can still be set up on the account and added to documents manually. To create the extended text, click Related Information, select Account, and then select Extended Text.
Direct Posting Indicates whether posting is allowed directly into this account from a journal line. Be aware that this field is automatically checked when new accounts are created. Banks, AP and AR GL Accounts usually do not allow direct posting as posting is done through sub-ledgers.
Blocked If selected, prevents entries from posting to this account. Accounts can be blocked and reopened as needed.
Last Date Modified System generated field; displays the date when the G/L account was last modified. (this does not refer to entries but to the master data)
Omit Default Descr. in Jnl. Add a checkmark to this option to omit the default description in the journal.
SAT Account Code The SAT Account Code.
No. of Changes Change Log Entries for current G/L Account.
No. of Dimension Combinations No. of dimension combinations where current G/L is used.

Default Dimensions Fast Tab

general_ledger_default_dimensions.png

The Default Dimensions FastTab is used to identify default dimensions to be used with current G/L Account and values posting determines whether these dimensions are mandatory or optional.

Posting FastTab

general_ledger_posting.png

The Posting FastTab determines how the G/L and Tax transactions are recorded.

The following describes the fields in the Posting FastTab:

Field Description
Gen. Posting Type Defines whether the account is used only for a Sale or Purchase transaction or with both types of transactions. This field is:
  • Used with the Tax Bus. Posting Group and Tax System Prod. Posting Group fields to find where the account posts Tax.
  • Filled in only for revenue and expense accounts where Tax is involved.
Gen. Bus. Posting Group Identifies the default General Business Posting Group for the account. This field:
  • Indicates sell-to or buy-from.
  • Is used with the Gen. Prod. Posting Group and Gen. Posting Type fields to find the G/L accounts to post to for sales, purchases, discount amounts, COGS, and inventory adjustments.
Gen Prod. Posting Group Identifies the default General Product Posting Group for the account. This field:
  • Indicates the type of item sold or purchased.
  • Is used with the Gen. Bus. Posting Group and Gen. Posting Type fields to find the G/L accounts to post to for sales, purchases, discount amounts, COGS, and inventory adjustments.
Tax Bus. Posting Group Identifies the default Tax Business Posting Group for the account. This field is used with the Tax Prod. Posting Group and Gen. Posting Type fields to:
  • Determine Tax percent and Tax calculation type
  • Find the G/L accounts where the program posts Tax
Tax Prod. Posting Group Identifies the default Tax Product Posting Group for the account. This field is used with the Tax Bus. Posting Group and Gen. Posting Type fields to:
  • Determine Tax percent and Tax calculation type
  • Find the G/L accounts where the program posts Tax
Tax Group Code Default Tax Group Code to be used with current G/L account.
Default IC Partner G/L Acct. No. Identifies the default IC InterCompany G/L account number for this G/L account. When entering this G/L account in the intercompany general journal, the IC G/L account specified in this field is used as the default balancing account number.
Budget Category Code Identifies the Budget Category code.
Department Code Identifies Department Dimension Code (Global Dimensions 1).
Project Code Identifies Project Dimension Code (Global Dimension 2).
Always Use Acct. Dimensions Add a checkmark to this check box to always use G/L Account dimensions.
Portal Expense Type Check if current G/L Account is Portal Expense Type.
Expense Type Category Identifies Expense Type Category for current G/L account.
Default Deferral Template Specify the default template used to distribute revenues or expenses on the involved accounting periods.

 

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