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The 10 Commandments of Financial Setups in Business Central

10 Commandments of Financial Setups in Business Central

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.


Learn More about the 10 Commandments of Financial Setups in Business Central


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