What is a control account in business central

In Dynamics 365 Business Central, a Control Account (often referred to as a G/L Account with Subledger Integration) is a General Ledger account that acts as a summary for a specific subledger, such as Accounts Payable (Vendors), Accounts Receivable (Customers), or Bank Accounts.

The primary purpose of a control account is to ensure that the total balance in the G/L always matches the sum of the individual records in the subledgers.

How it Works

In Business Central, you don't typically post entries directly to a control account using a General Journal. Instead, you post to a "Subledger Card" (like a Customer or Vendor), and the system automatically updates the corresponding G/L account.

1. Subledger Entry: You post a sales invoice for Customer A for $100.

2. Automatic Routing: Business Central looks at the Customer Posting Group assigned to Customer A.

3. G/L Update: The system automatically debits the Receivables Control Account in the General Ledger.

The "Direct Posting" Safeguard

The most important setting for a control account is the Direct Posting toggle on the G/L Account Card.

• Direct Posting = OFF: This is the standard setting for control accounts. It prevents users from manually entering a journal entry against that account, which would cause the G/L to "drift" and no longer match the subledger.

• Direct Posting = ON: Used only for standard G/L accounts (like utilities or rent) where no subledger exists.

Common Control Accounts & Posting Groups

Business Central uses Posting Groups to link subledgers to their respective control accounts: