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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / G/L Account categories...
Small and medium business | Business Central, N...
Suggested Answer

G/L Account categories and sub categories

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Posted on by INITMAN007 390
Hello


I know that account categories and sub categories are used in financial reports, and they are entered in the G/L Account Categories page.

However, when creating Financial Reports I can pull the information direct from the Chart of A counts and build my reports that way.

My question is, what’s the benefit of populating the G/L Account Categories page? And does it link to any reports?

Thank you
Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Suggested answer
    Assisted by AI
    taher-el-mehdi Profile Picture
    taher-el-mehdi 56 on at

    Why populate the G/L Account Categories page?


    • Standardization for Reporting

      G/L Account Categories and Subcategories provide a structured way to group accounts beyond the raw Chart of Accounts. This ensures consistency across financial statements like Balance Sheet and Income Statement, especially when accounts are added or modified.


    • Automatic Financial Statement Layouts

      When you populate the G/L Account Categories page, Business Central can automatically generate layouts for key financial reports (e.g., Balance Sheet, Income Statement) without you manually grouping accounts each time.


    • Integration with Account Schedules

      Account Categories link directly to Account Schedules. If you use Account Schedules for financial reporting, these categories simplify the setup because they predefine rows for major sections (Assets, Liabilities, Equity, Revenue, Expenses).


    • Compliance and Analysis

      Categories help align your reporting with accounting standards (IFRS, GAAP) and make it easier to analyze performance by grouping similar accounts.

     

    Does it link to any reports?

    Yes:


    • Financial Reports (Account Schedules)

      When you create Account Schedules, you can pull in G/L Account Categories to automatically structure your report.

    • Standard Reports

      Built-in reports like Balance Sheet, Income Statement, and Cash Flow use these categories for grouping.

    • Analysis Views

      Categories can also be used in analysis views for dimensions and reporting.

      •  

    If you skip it and build reports from Chart of Accounts

     

    You’ll have full flexibility, but:


    • You’ll need to manually group accounts every time.

    • Reports won’t auto-update if new accounts are added.



      •  

    Bottom line: Populating G/L Account Categories is optional but highly recommended for automation, consistency, and compliance. It saves time when creating or updating financial reports.

  • Suggested answer
    Khushbu Rajvi. Profile Picture
    Khushbu Rajvi. 20,947 Super User 2025 Season 2 on at
    G/L Account Categories are not mandatory to create Financial Reports, but they provide a standardized structure that Business Central’s financial reporting is designed to use. They simplify report definitions, make reports resilient to Chart of Accounts changes, and are expected by built-in statements like the Balance Sheet and Income Statement. Best practice is to populate categories and then build Financial Reports on top of them.
     
     

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