Creation Of Chart Of Accounts In D365 BC

Creation of Chart of Accounts in D365 BC:

(1) In this article, we will get to know about the Chart of Accounts in Business Central D365. This is the heart of financial processes because it stores your financial data. COA shows the accounts all general ledger entries are posted to Business Central. In Business Central, the standard system has predefined COA as a reference. Some important images as per Microsoft, as shown.

Add or Change Accounts:

Delete Accounts:

Block deletion of G/L accounts:

Block deletion of GL accounts in D365 BC

(2) Go to the search bar and enter “Chart Of Account” as shown.

(3) After this, the Chart of Accounts List page opens. For creating a new G/L Account or Ledger, Press the “New” button and if you want to modify the existing G/L Account or Ledger then double click on the selected account number and do the modification as per need. In COA standard system offer to edit directly in the list. For that, use the “Edit List” option for that, as shown.

Field Name	Nature & Importance	Field Description
No.	Mandatory	Specifies the number of the involved entry or record, according to the specified number series.
Name	Mandatory	Specifies the name of the general ledger account.
Net Change	Auto calculated field	Specifies the name of the general ledger account.
Balance	Auto calculated field	Specifies the name of the general ledger account.
Balance at Date	Auto calculated field	Specifies the G/L account balance on the last date included in the Date Filter field.
Income/Balance	Mandatory	Specifies whether a general ledger account is an income statement account or a balance sheet account.
Debit Amount	Auto calculated field	Specifies the total of the ledger entries that represent debits.
Credit Amount	Auto calculated field	Specifies the total of the ledger entries that represent credits.
Account Type	Mandatory	Specifies the purpose of the account. Total: Used to total a series of balances on accounts from many different account groupings. To use Total, leave this field blank. Begin-Total: A marker for the beginning of a series of accounts to be totaled that ends with an End-Total account. End-Total: A total of a series of accounts that starts with the preceding Begin-Total account. The total is defined in the Totaling field.
Totaling	Mandatory	Specifies an account interval or a list of account numbers. The entries of the account will be totaled to give a total balance. How entries are totaled depends on the value in the Account Type field.

(4) After that, for creating a new ledger or g/l account. New G/L Account Card opens and enters the information, as shown below.

General Tab:

Field Name	Nature & Importance	Field Description
No.	Mandatory	Specifies the number of the involved entry or records, according to the specified number series.
Name	Mandatory	Specifies the name of the general ledger account.
Income/Balance	Mandatory	Specifies whether a general ledger account is an income statement account or a balance sheet account.
Account Category	Mandatory	Specifies the category of the G/L account.
Account Subcategory	Mandatory	Specifies the subcategory of the account category of the G/L account.
Debit/Credit	Mandatory	Specifies the type of entries that will normally be posted to this general ledger account.
Account Type	Mandatory	Specifies the purpose of the account. Total: Used to total a series of balances on accounts from many different account groupings. To use Total, leave this field blank. Begin-Total: A marker for the beginning of a series of accounts to be totaled that ends with an End-Total account. End-Total: A total of a series of accounts that starts with the preceding Begin-Total account. The total is defined in the Totaling field.
Totaling	Mandatory	Specifies an account interval or a list of account numbers. The entries of the account will be totaled to give a total balance. How entries are totaled depends on the value in the Account Type field.
No. of Blank Lines	Optional	Specifies the number of blank lines that you want inserted before this account in the chart of accounts.
New Page	Optional	Specifies whether you want a new page to start immediately after this general ledger account when you print the chart of accounts. Select this field to start a new page after this general ledger account.
Search Name	Mandatory	Specifies an alternate name that you can use to search for the record in question when you cannot remember the value in the Name field.
Balance	Auto Calculated	Balance
Reconciliation Account	Optional	Specifies whether this general ledger account will be included in the Reconciliation window in the general journal. To have the G/L account included in the window, place a checkmark in the check box. You can find the Reconciliation window by clicking Actions, Posting in the General Journal window.
Automatic Ext. Texts	Optional	Specifies that an extended text will be added automatically to the account.
Direct Posting	Needs as per the Business Requirement	Specifies if you can post directly to this general ledger account. If the field is not selected, then users must use sales documents, for example, and not post directly to the general ledger.
Blocked	Needs as per the Business Requirement	Specifies that the related record is blocked from being posted in transactions, for example, a customer that is declared insolvent or an item that is placed in quarantine.
Last Date Modified	Auto Updated	Specifies when the G/L account was last modified.
Omit Default Descr. in Jnl.	Optional	Specifies if the default description is automatically inserted in the Description field on journal lines created for this general ledger account.

GL Account Posting Tab:

Field Name	Nature & Importance	Field Description
Gen. Posting Type	Needs as per the Business Requirement	Specifies the general posting type to use when posting to this account
Gen. Bus. Posting Group	Needs as per the Business Requirement	Specifies the vendor’s or customer’s trade type to link transactions made for this business partner with the appropriate general ledger account according to the general posting setup.
Gen. Prod. Posting Group	Needs as per the Business Requirement	Specifies the item’s product type to link transactions made for this item with the appropriate general ledger account according to the general posting setup.
VAT Bus. Posting Group	Needs as per the Business Requirement	Specifies the VAT specification of the involved customer or vendor to link transactions made for this record with the appropriate general ledger account according to the VAT posting setup.
VAT Prod. Posting Group	Needs as per the Business Requirement	Specifies the VAT specification of the involved item or resource to link transactions made for this record with the appropriate general ledger account according to the VAT posting setup.
Default IC Partner G/L Acc. No	Needs as per the Business Requirement	Specifies accounts that you often enter in the Bal. Account No. field on intercompany journal or document lines.
Default Deferral Template	Needs as per the Business Requirement	Specifies the default deferral template that governs how to defer revenues and expenses to the periods when they occurred.
GST Group Code	Needs as per the Business Requirement	Specifies a unique identifier for the GST group code used to calculate and post GST.
GST Credit	Needs as per the Business Requirement	Specifies if the GST credit has to be availed or not
HSN/SAC Code	Needs as per the Business Requirement	Specifies a unique identifier for the type of HSN or SAC that is used to calculate and post GST.
Exempted	Needs as per the Business Requirement	Specifies whether the account is exempted from GST or not.

Consolidation:

Field Name	Nature & Importance	Field Description
Consol. Debit Acc.	Mandatory for COA consolidation	Specifies the number of the account in a consolidated company to which to transfer debit balances on this account.
Consol. Credit Acc.	Mandatory for COA consolidation	Specifies the number of the account in a consolidated company to which to transfer credit balances on this account.
Consol. Translation Method	Mandatory for COA consolidation	Specifies the account’s consolidation translation method, which identifies the currency translation rate to be applied to the account.

Reporting Tab:

Field Name	Nature & Importance	Field Description
Exchange Rate Adjustment	Needs as per the Business Requirement	Specifies how general ledger accounts will be adjusted for exchange rate fluctuations between LCY and the additional reporting currency.