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Journal Entries vs G/L entries

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Posted on by CU10120504-0

Hello, can someone explain me the difference between Journal Entries and G/L Entries?

For example: When I use Payment Journal to pay Vendor 1000$, journal entry will be on one line: Dr. Vendor, Amount: 1000 (Positive) Cr. Bank Account (Bal.Account Type)

But after I post this journal entry and I click Navigate and check G/L entries, there is two lines that are confusing for me:

For example:

1. G/L 1234 (Bank) ---------- Amount -1000------------ Credit Amount: 1000 ---------- Bal.Acc.Type Vendor

2. G/L 5678 (Payables) ------ Amount 1000------------- Debit Amount: 1000 ---------- Bal.Acc.Type Bank Account

Generally I know that we post journal entries to Vendor's subledger and then It's connected to G/L accounts and but in NAV I can't connect this G/L entries, Debits and Credits and Positive and Negative amounts.

Thank you

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Dynamics 365 Business Central

Microsoft Dynamics NAV

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Mustafa Omerbegović 1,473 Super User 2025 Season 2 on at

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Hello,

journal entries are entries before posting, and GL entries are entries that are generated after you post some payments.

When you are entering your journal lines, you can set your lines to post directly to the GL account, or you can post them to the Customer, Vendor, Bank Account, FA, etc. All your GL accounts for Customers, Vendors, and Bank Acc are set up on the posting groups where you have defined GL accounts for different posting groups or different Bank Accounts. Your second line is set up on the Bank Account Posting groups if your Balance account for this line is a Bank Account.

I did not understand well what exactly you cannot connect in NAV. Please write your last sentence different way, or send us a screenshots of the entries that you cannot connect.

Greetings

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YUN ZHU 95,331 Super User 2025 Season 2 on at

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Hi, This should be the account you set in Vendor Posting Groups.

Thanks.

ZHU

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Jainam M. Kothari 15,631 Super User 2025 Season 2 on at

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Hello,

For Customer, Vendor, and Bank Accounts, Posting Groups are set up with assigned G/L Accounts. Based on these G/L Accounts, when a user processes a Journal Entry, the system automatically posts the corresponding G/L Entries using the predefined G/L Accounts.

This ensures that the impact is reflected in the Trial Balance (i.e., the Chart of Accounts), along with Vendor Ledger Entries and Bank Ledger Entries.

That’s why the system generates G/L Entries when posting a Journal Entry.

I hope this clarifies your query.

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CU10120504-0 27 on at

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I mean this. One line journal entry is clear. but how can you describe two lines of G/L entries?

Thank you

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Suresh Kulla 50,243 Super User 2025 Season 2 on at

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Journal entries define what you need to post but at the back end based on the Account Posting Groups and Balance Accounts we have different GL Accounts Setup in General Posting Setup and it will create separate entries for each account to balance.

https://learn.microsoft.com/en-us/dynamics365/business-central/finance-posting-groups

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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You have one line in the journal entry but two lines in the G/L entries because of double-entry accounting. Double-entry accounting is a bookkeeping system that records every financial transaction as both a debit and a credit. It's basically the backbone of accounting.

In the journal, both the debit and credit are in the same line. But when you post the journal, it creates both a debit and a credit and posts them in two separate lines. The two G/L entries you see represent these corresponding debit and credit transactions.

For example, in your first post, you're paying a vendor $1,000, and in your second post, you're paying $120. In both cases:

The debit (positive amount) of $1,000 or $120 is recorded in the vendor subledger and the vendor A/P G/L account.

The credit (negative amount) of $1,000 or $120 is recorded in the bank account.

Since debits are recorded as positive amounts and credits as negative amounts, that’s why you see $1,000 or $120 as positive in the vendor-related entry and $1,000 or $120 as negative in the bank account entry.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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Khushbu Rajvi. 20,275 Super User 2025 Season 2 on at

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Hope this provide you hint as wellL: https://learn.microsoft.com/en-us/dynamics365/business-central/ui-work-general-journals

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CU10120504-0 27 on at

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Hello, again. Thank you all for your answers.

I want to add that the screenshot I uploaded was for new example and in my post It was another example, different numbers, but the same case.

How can I reply specific person's answer here? or do I have only "Reply to this post" option? Or can I message to person from the answers?

Thank you .

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CN-24021152-0 79 on at

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Hello,

The reason why when you are entering the Payment you have one single line and at posted transactions (GL Entries) you see two Lines is because the transaction itself will result in one debit and one credit involving different GL Accounts (Bank and Vendor).

To have a better overview I would suggest to create a Payment Journal and add the details not in one single Line but split in 2 Lines:

1st Line= Vendor = 1.000

2nd Line = Bank = -1.000

The result when looking at GL Entries are exactly the same while performing a Payment in one single Line.

GL Entries display the transaction details posted at Bank GL account and Vendor GL account:

Bank to Vendor

1. G/L 1234 (Bank) ---------- Amount -1000------------ Credit Amount: 1000 ---------- Bal.Acc.Type Vendor

Vendor to Bank

2. G/L 5678 (Payables) ------ Amount 1000------------- Debit Amount: 1000 ---------- Bal.Acc.Type Bank Account

Hope this may help to have a better understanding about posted transactions at GL Entries.

Kind regards,

Carmen Nunes

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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or do I have only "Reply to this post" option?

Yes you only have this option. If you want to respond to a specific person's comment, you can copy and paste their post into your reply and use the quote function.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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