Microsoft Dynamics 365 Business Central

How to Create a New GL Account and Post a Journal Entry

Microsoft Dynamics 365 Business Central – How to Create a New GL Account and Post a Journal Entry

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Today we’re going to be going over how to create a new GL account and post a journal entry. My name is John Hoyt, I am the solution specialist for Technology Management Concepts. Let’s get started!

In this video we’ll cover how to create a new GL account, how to create and post a journal entry using the Bill account, how to include a comment to explain why this is being done; leave a solid audit trail. In this case, we’re adding a new sales distribution channel. It will create a new revenue account and reclass some of the existing revenue to it.

So, let’s see how this works. I’ve pulled up my Business Central system and the first thing we’re going to need to do is create our new account. So, we go to ‘Finance,’ navigate to the ‘Chart of Accounts’ and we’ll click on ‘New.’ The account number I want to use is 40120; we’re going to call that “International Sales.” I’ll leave it on the income statement, the account category I want to use will also be ‘income.’ My account subcategory, I want to leave this as part of my income for services, I just want to break it out specifically for my international customers. The accounts going to hold primarily credit balances and it will be set up as a posting account. In the posting details setup, I’ll specify that this is going to be a ‘sales account.’ The general business posting group, I’ll leave as ‘domestic.’ My production group, I’ll set that for ‘services.’ And for both the tax business and tax production posting groups, I want to set those as ‘no tax.’

All international customers are done without any taxing. And finally, my overall tax group I’ll set that for ‘non-taxable’ as well. I don’t have any consolidation reporting or cost accounting functions that I need to concern myself here. Account saved all back out of that new account that we’ve created and let’s go and pull up the general journal now. I’m going to work in my default journal in the demo batch. Now I’ll specify the account that I want to bring value out of that’s like 4 0 100 account. Because I currently have about $20,000 worth of revenue recorded there that actually should belong in my new international account, and so I’ll specify that as the second line. Again, I’ll move all of that $20,000 out. Now I could use additional lines here to include my comments just put something in at the description level. I might have other documents that I want to associate with this I can do that on my incoming documents here. Or I could add dimensions as necessary to do a further classification.

I’m ready to post so I’ll do a preview first. Two GL entries created, two tax entries created, no error messages so I’m ready to post this for real. I’m going to post those journal lines through the system gives me feedback if those general lines were successfully posted. I can now go back to my original chart of accounts and I’ll scroll down into my income section. We’ll find that new international sales account I can drill back out of the balance see the journal entries and ledger entries that make up that transaction. so that’s been recorded I’ve now successfully re-classed $20,000 worth of revenue after setting up my new account.

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