General Ledger – Chart of Accounts Insight

Dynamics NAV provides extensive flexibility when creating a new chart of account, the account number is no restricted to any configuration for account format, structure or segmentation. Theoretically speaking, the account encompasses of several segments such as: main account segment, cost center, serial number ..etc.

Dynamics GP Versus Dynamics NAV (Flexibility and Restrictions)

In fact, this account number can be considered as one of the major differences between Dynamics GP and Dynamics NAV, since GP enforces more restrictions on the configuration of the COA by providing the following:

• Account Format and Structure: which defines the number of segments, and the number of digits per each segments
• Account Segment: which defines the segment value per each account segments.

For instance, you can set up your chart of accounts by defining the following rules which will later on governs how accounts are entered into the system.

• Segment One (two digits): Legal Entity
• Segment Two (five digits): Main Account
• Segment Three (two digits): Serial Number
• Account Format: 00-00000-00

On the other hand, Dynamics NAV is more flexible and straight forward. There is no need to go through all of the configuration of defining rules and segmentation. The account No. field could include a set of numbers, characters …etc without any constraints.

Chart of Accounts  – Look and Feel

Dynamics NAV provides a unique presentation of the chart of accounts through an indenting function which makes sure that each account is presented under its main category.

Chart of Accounts

As shown above, each record within the COA is given an Account Type (Posting, Heading, Total, Begin Total and End Total) based on which, the Indent Function ensures that the COA is well presented.

The indent function can be found on the Chart of Accounts page, under Actions > Indent Chart of Accounts

Indent Chart of Accounts

Chart of Accounts  – How to Setup New Accounts

When creating a new account, there are five tabs to be considered which are: the general details of the account, posting details, consolidation, reporting and cost accounting.

As mentioned at the beginning of this article, the Account No. is not restricted to any rules or segmentation. Each account have an account Description.
The Income/Balance field determines whether the account is a balance sheet or income statement, which is important to determine whether how the account will be closed when performing the year-end closing procedure.
The Debit/Credit field determines whether the account has typical balance of debit, credit or both. The interesting part is that the account number could have an account type of either (Posting, Total, Begin Total , End Total or a Heading) In case an account type is set to be a total, the Totaling field should include the associated accounts range.

The Search Name can include other description/ names for the account to be used when searching for the account. Other important options include: Direct Posting and Blocked. The first indicates whether the account can be used in the general journal entry while the blocked option is used to inactivate the account.

Other tabs including Posting, Consolidation, Reporting and Cost Accounting will be explained in further details in another article.

General Ledger – Other tabs

Chart of Accounts – Technical Perspective

These details are kept in G_L Account and is displayed in two different ways, either on the Chart of Account (in which all the accounts are displayed and indented) or the account card (in which only one account is displayed).

G_L Account Table

Reference>> The fields and details are illustrated in MSDN GL_Account

Best Regards,
Mahmoud M. AlSaadi