Balancing Accounts

Business Central/NAV User Forum
1

Hi All,

Am new to this forum and Navision. Can anyone tell me what and hoe to use Balancing accounts? i am not able to get any help from tyhe help file :slight_smile:

Thanks in advance!

2

Exactly what do you want to know? You use balancing accounts just like income accounts.

3

Dear Erik,

Can you explain me the concept of a Balancing account? Why are we using that? i can see that the balancing account can be a GL/Bank/Customer/Vendor/FA/IC from the drop down list. But what is the concept behind?

Thanks in advance!

4

EVERY account entry MUST balance, if you enter $100 direct to the GL the system wants to know where you want the other side to go. So you write off stock, one side is the reduction of the inventory asset account, the other is the expense for the write off. Have you gone through any “T” account concepts for basic accounting?

5

Ok now I understand your question!

But it’s as Adam explains it. It’s the basic concept of accounting! You must always have both a debit and a credit post to make things balance. And here you have the balancing account. When using it from a journal, then you have your primary posting, which could be a customer who have done a payment. This is getting credited to the customer account. As the payment was done into your bank account, then you debit your bank account, which here is your balancing account.

It’s not required to have a balancing account. Instead of using the balancing account, then you could just add a new line which then would make your journal balance (debit and credit must always be the same).

6

Hi Erik

I agree with the concept. But In our co some time they need to pass 4 entries. For Example if sales receipts ithey want ro Dr Cash and Cr Customer and then Dr bank and Cr Cash for depositing cash in bank. Instead We can do by 2 entries. Yes or No?

Further can any one explain me how to make entries for Intercompnay transactions?

Merita

7

Hi Merita,

That’s not uncommon. But typically you would make one line per customer with your cash account as the balancing account, and then at the end of the day you would make one line where you transferred the money from your cash account to your bank account, now with the bank account as your balancing account.

8

Hai Friends

Like Hari I am aslo new to this system I too need to know how to get final reports like Income statement Balance sheet in a standard way.

Merita

9

Yes Like that we are doing. But why we spend time for 4 or 5 lines when we have the chance to do it with 2 lines. as we are so sure that we deposit the money in the account.

10

Hi Merita,

Welcome to the forum. In general you should never ask a new question in an existing thread, unless it’s a direct follow question to the existing question. Please ask your question in a new post. Thanks.

11

We are posting all the transaction and at the end of a perticular period how we generate a Profit & loss Accounts. What we generat e now is not that clear or not in presentable manner. May be it is weakness in our system . I have no idea. But it is not good form.

Merita

12

Hi Merita,

Which part of my comment regarding asking a new question in an existing thread didn’t you understand? [:)]

PLEASE DON’T ASK NEW QUESTIONS IN EXISTING THREADS.

13

HI I am also new and I am using MS DYNAMICS AX 2009, and my understanding to balancing account is that…

Balancing Account is for Journal entry preparation in order to identify to which table you need in making the account.

But we should be aware on which module we are making a journal entry before accessing the balancing account.

For instance making payment to Supplier, basically it must be done in AP Module , but it can be done also in GL Module.

But doing it in GL Module, you may not access AP modules fuctionality such as settlement, printing of checks and others.

Therefore, I believe its concept is for us to navigate directly on different tables as we encounter different scenarios in

every modules.

I hope this will help you understanding the concept of Balancing Account… somehow…

Thanks…

14

It is your system, so your weakness - get trained on account schedules and as Erik says - if you have a question post a new thread - adding it to the bottom of an unrelated one will mean it is generally ignored.

15

Dear All,

Thanks a lot for explaining the concept of balancing account. Let me try all i can in the product and understand it better.

Cheers :slight_smile: