Let’s proclaim the Accountant’s decree by speaketh the following: Microsoft Dynamics 365 Business Central 10 Commandments of Financial Setups
1. Thou Shalt always use Totaling accounts when setting up the Chart of Accounts.
This simplifies financial reporting, inquiries, online analysis, and other benefits.
2. Thou Shalt never incorporate departmental or other sub-segments within the Chart of Accounts. Use Dimensions.
For example, there should only be 1 “Telephone Expense” account – not 5 “Telephone Expense” accounts because you have 5 different departments/locations, etc.
3. Thou Shalt only use Dimensions when required for financial reporting purposes.
Do not set up a Dimension because “it might be useful”. Dimensions can always be added and deployed later as required, so overbuilding up-front is not necessary or recommended.
4. Thou Shalt create and assign G/L Account Subcategories to auto-build standard Account Schedules (even though these are not required).
Always delete any existing (assisted setup) GL Account Subcategories before assigning and re-create new/meaningful Subcategories.
5. Thou Shalt never set “Direct Posting” = Yes for a GL Account that is used within a Posting Group.
Once direct postings are done, reconciliation becomes very difficult.
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6. Thou Shalt use the fewest number of Posting Groups as possible.
In many cases, one of each type of Posting Group is sufficient.
7. Thou Shalt create a separate G/L Account to be assigned to each Bank Account that exists.
This will make Bank Reconciliation much easier.
8. Thou Shalt never use a GL Account for multiple uses within Posting Groups.
The only exceptions to this rule are that the same GL Account may be used as both “Sales Account”/”Sales Cr. Memo Account” and the same GL Account may be used as both “Purchases Account”/”Purchases Cr. Memo Account”.
9. Thou Shalt define and use a single “WIP Account” across all Inventory Posting Setup records.
Because of how BC posts production-related entries, only the use of 1 account is supported.
10. Though Shalt never delete a GL Account that has records posted against it.
The system may allow it to be deleted, but historical financial data will not be accurate/accessible.