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Hi Community,
May I know in General Journal, there are these columns.. Balance Account Type, Balance Account no. etc.
May I ask what are these for and why do we need to balance?
Is it something similar like Credit and Debit?
Thank you
the behavior you described is a common practice for balancing and posting journal entries. Let's walk through the example you provided step by step:
Suppose you have three expense entries for three different departments:
Expense 1: $30
Expense 2: $30
Expense 3: $40
To ensure the journal entry balances, you have two options:
Option 1: Fill in a balance account on the same journal line.
In this case, you can enter the amounts for each expense line as positive values and assign a single line to balance the entry. Assuming the balance account number is 1000, the journal entry would look like this:
Expense 1: $30
Expense 2: $30
Expense 3: $40
Balance Account:1000
The total amount at the bottom is zero, indicating a balanced entry. You can then post the journal.
Option 2: Use a new line with an amount in the opposite sign to balance the other lines.
In this approach, you would enter the amounts for each expense line as positive values and add a separate line with a negative amount that balances the entry. The journal entry would look like this:
Expense 1: $30
Expense 2: $30
Expense 3: $40
Balancing Line: -$100
Again, the total amount at the bottom is zero, signifying a balanced entry. You can proceed to post the journal.
Both options achieve the same result of balancing the journal entry, and the choice between them often depends on personal preference or specific accounting practices within your organization. As long as the total amount at the bottom of the journal is zero, you can successfully post the entry in Microsoft Dynamics NAV.
Hi Zhu,
Understand what you mean, but I do realize that Navision doesn't allow me to proceed if I don't have a balance account when using General Journal.
Thank you!
In simple terms, the following situation, 1=2. But the generated General Ledger Entries will be different, one with one line and one with two lines.
1. Using Balance Account.
2. Not using Balance Account.
Hope this helps as well.
Thanks.
ZHU
As a thumb rule in accounting, each credit entry has to have a balancing debit entry in your General Ledger. You cannot post accounting entries unless you have your credits & debits balanced. You are right, it is similar to credit & debit. I'd suggest take a gL account in "Account No" and another GL Account in Balance Account No. Press preview post or POST. See the GL entries, you'll see yourself
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