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What are document types for?

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Posted on by hydrillo

I hope anybody can help me with this simple question for what I cannot find a satisfactory answer, whether in the Microsoft docs nor in any forum.

What are document types in BC like Invoice, Order or Payment for? Is it just a simple tag or is something happening in the background? When does it makes sense to use them in G/L journal entries?

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Dynamics 365 Business Central

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Teddy Herryanto (Th... 14,284 Super User 2025 Season 2 on at

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The document type is used to category the journals.

It also has some validation in it to make sure that users don't make mistake in it.

Is it mandatory to use document type? Short answer is no, but it is highly recommend to use it when applicable.

This will make sure that certain validation and functionality works against the entries.

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YUN ZHU 95,739 Super User 2025 Season 2 on at

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Although this is not mandatory, it is very important to fill it out accurately if, for example, your financial staff wants to export all payments and invoices for comparison.

In addition, this not only affects GL Entries, but also Customer Ledger Entries, etc.

Hope this helps.

Thanks.

ZHU

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Khushbu Rajvi. 20,614 Super User 2025 Season 2 on at

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Document Types (like Invoice, Payment) control posting behavior, validations, and entry application. They're not mandatory but strongly recommended for proper financial and subledger processing.

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Mansi Soni 8,909 Super User 2025 Season 2 on at

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Hello,

In Business Central, document types like Invoice, Payment, or Credit Memo aren’t just labels, they help the system understand how to process and track transactions. In G/L journals, using the right type improves clarity, ensures proper posting behavior (like applying payments), and keeps your reports and audit trail clean and accurate.

Hope this answer will help you!

Regards,
Mansi Soni

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