Need help in Updating balance in new empty Chart of accounts

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Posted on by SL-15041028-0

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Hello,

Im a new user and i want to start creating transactions in the system, but my query is whether my assets match with liabilities, Do i need to post in equity first. If yes then what should be my journal entry.

Thanks,

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Dynamics 365 Business Central

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RockwithNav 8,963 Super User 2026 Season 1 on at

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Once you have your COA ready, you can start using your journal's. Just make sure your Direct Posting is flagged ON in your chart of Accounts.

Which account to use and which one to use as a Balancing Account, you need to consult your Finance consultant. Technically system wont complain whatever account you use.

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YUN ZHU 99,090 Super User 2026 Season 1 on at

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The contents of the balance sheet can be edited, as follows

More details: https://yzhums.com/43664/

Hope this can give you some hints.

Thanks.

ZHU

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Ramesh Kumar 7,547 Super User 2026 Season 1 on at

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Yes — Assets = Liabilities + Equity must always balance.

https://usedynamics.com/business-central/details/opening-balances-strategy/?utm

Thanks

Ramesh

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Jeffrey Bulanadi 9,112 Super User 2026 Season 1 on at

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Hi,

When starting fresh in BC, it’s essential to ensure your opening balances reflect the fundamental accounting equation: Assets = Liabilities + Equity.

Here’s what’s possible:

First, make sure your Chart of Accounts (COA) is fully set up with the correct account types: assets, liabilities, and equity. You can use the Chart of Accounts page to review and adjust account categories and subcategories as needed.

To post opening balances, use the General Journal. For example:

Debit your asset accounts (e.g., Cash, Inventory, Receivables)

Credit your liability accounts (e.g., Payables, Loans)

The difference should be posted to an equity account (e.g., Retained Earnings or Opening Equity)

If your assets exceed liabilities, the balancing entry goes to equity. If liabilities exceed assets, equity will be negative — which is valid in some startup scenarios.

Your journal entry might look like:
Account No. | Description | Debit | Credit ------------------------------------------------------- 10100 | Cash | 50,000.00 | 14100 | Inventory | 20,000.00 | 20100 | Accounts Payable | | 30,000.00 30100 | Opening Equity | | 40,000.00

Make sure Direct Posting is enabled for these accounts in the COA so you can post manually. You can also use Configuration Packages if you're importing balances from another system.

Helpful references:

Set up or change the chart of accounts – Microsoft Learn
Opening balances strategy – UseDynamics
Apply company configuration packages – Microsoft Learn
General Journal walkthrough – Sirius Dynamics

If you find this helpful, feel free to mark this as the suggested or verified answer.

Cheers
Jeffrey

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DAnny3211 11,417 Super User 2026 Season 1 on at

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Hello,

Welcome to Business Central!

To answer your question: yes, when you're starting to record transactions in a new company, your assets must equal liabilities plus equity. This is the basic accounting equation:

Assets = Liabilities + Equity

If you're just starting and want to bring your opening balances into the system, you typically need to post an opening equity entry to balance your assets and liabilities.

Example:

Let’s say you have:

Assets: 10,000 (e.g., bank account)

Liabilities: 2,000 (e.g., accounts payable)

To balance the books, you need to post Equity = 8,000.

Journal Entry:

You can use a General Journal to post this:

Account Type Account Debit Credit

G/L Account Bank 10,000

G/L Account Payables 2,000

G/L Account Equity 8,000

This way, your books will be balanced and you can start entering transactions.

DAniele

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Sohail Ahmed 11,169 Super User 2026 Season 1 on at

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Adding more details

https://www.youtube.com/watch?v=07I9UYX_vfg

✅ Mark this answer as verified if it helps you.

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