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Setup Chart of Account

The Chart of Accounts is the list of General Ledger accounts where we organize our business expenditures, revenue, assets and liabilities of a company.

• In business central, we can build a multi-level chart of accounts so that we can get to know the financial information easily in a structured way.
• To setup the chart of accounts, in the search for Chart of Accounts and click the related link.

• Choose New to create a new account.

• Fill in the No. and Name fields. The number will depend on where we want our account to appear.

• Now in the Income/Balance field, specify whether the account is an Income Statement or Balance Sheet.

• In the Account Category field, select the account category Income and in the Account Subcategory field, select account subcategory Income.

• To specify the type of entries that we will post in this account, we choose the Debit/Credit field and select the type of entries.

• To define the purpose of the Account, we will choose the Account Type field which helps to create different levels.
• We can group the accounts using the Begin-Total and End-Total types.

• If we want to include the General Ledger accounts in the Reconciliation page in the General Journals, enable the Reconciliation Account option.
• If we want to add automatically an extended text when we use this general ledger account, enable the Automatic Ext. Text option.
• The Direct Posting option, defines whether the system allows to post the transaction directly to the General Ledger account.
• If we want control accounts for Receivables and Payables, keep the Direct Posting option disabled so that all transactions will be posted through Customers and Vendors.

• If we want to directly post the transactions in the G/L account, we can also setup the Posting using the Posting fasttab.

• In this section, we can define the General Posting Type as Sales or Purchase.
• We also have some additional options like Gen. Bus. Posting Group, Gen. Prod. Posting Group, Tax Bus. Posting Group, etc.

• Thus, now we can use the general ledger account.

 

this is how you can "Setup Chart of Account" in Business Central.

 

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