General Journal Adjustments Directly to the Bank Account

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Posted on 8 Aug 2024 23:10:56 by JE-29041340-0

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Hi:

I know how to use the General Journals window to post to the Bank Account.

From an accounting standpoint, what's the rationale for doing so?

Thanks!

John

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Dynamics 365 Business Central

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Valentin Castravet 27,136 Super User 2025 Season 1 on 09 Aug 2024 at 02:08:18

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General Journal Adjustments Directly to the Bank Account

When a transaction affects your bank account, you need to record it in your accounting/erp system, which in our case is Business Central. There are typically three main types of transactions that impact your bank account:

Money coming in (e.g., customer payments)

Money going out (e.g., vendor payments)

Bank fees

You can record these transactions in various ways within Business Central, such as:

Using the General Journal

Using the Payments Journal

Using the Cash Receipts Journal

Regardless of the method you choose, the end result is the same: a transaction that affects your bank account is recorded in your books. So the rationale is that instead of using one of the other journals (i.e. payment journal), you're using the general journal. In the back end, all those journals are based on the general journal, so its really the same thing. Most common scenarios where the general journal is used is when you have bank fees.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/
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YUN ZHU 80,177 Super User 2025 Season 1 on 08 Aug 2024 at 23:34:42

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General Journal Adjustments Directly to the Bank Account

I think the simplest example is payment (Customer or Vendor).

Because some small companies do not specifically use Payment Journal or Cash Receipt Journal, all operations are carried out in General Journal.

Another example is interbank transfers.

Hope this helps.

Thanks.

ZHU