Business Central Basic Finance Training
Table of Contents
System Setup
1) Company Information
2) General Master Tables
a. Payment Method
b. Payment Terms
c. Item Charge
3) Currencies and Exchange Rate
4) Dimensions
5) Chart of Accounts
6) Posting Groups
7) No. Series
8) Accounting Period
9) General Ledger Setup
10) Sales & Receivable Setup
4) Purchase & Payable Setup
5) Inventory Setup
6) Fixed Assets Setup
7) Marketing Setup
Master Setup
1) Customer
2) Vendor
3) Employee
4) Item
a. Create New Item
b. Inventory Type
c. Copy Item Function
d. Item Template
5) Bank Account
6) Fixed Assets
Analysis View
Account Schedule
1) Account Scheule Layout
2) Create Column Layout
3) Create Account Schedule
Finance Operation
1) General Journal
2) Account Receivable
3) Payment Journal
4) Recurring General journal
5) Reverse Entry
Pages
1) G/L REgister
2) General Ledger Entries
3) Customer Ledger Entries
4) Vendor Ledger Entries
5) Bank Ledger Entries
6) Reports
Month End & Year End Closing
1) Month End
2) Year end

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System Setup

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Company Information

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General Master Tables

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Payment Method

• Payment method code and payment method description
• Balance account – use for default settlement account.

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Payment Terms

Due Date Calculation Formula
• D = Day(s)
• M = Month(s)
• CM = End of Current Month
Example:

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For more information on date formula use in Business Central, please see Entering dates and times in Business Central - Business Central

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Item Charge

i) Set up item charge for include the additional cost (e.g. Freight charge) to the inventory value.

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For more information on Item Charge, please see https://docs.microsoft.com/en-us/dynamics365/business-central/payables-how-assign-item-charges

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Currencies and Exchange Rate

To Create Currency

1. Go to Currencies List
2. Select New on Action Bar
3. Fill up the basic information as below.

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Example: 1 HKD = 7.8 USD (Local Currency: HKD)

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Dimensions

To create new Dimensions

1. Go to Dimensions List
2. In Edit List mode, enter the new dimension code into the last row or click new to add the new dimension.

To add Dimension Values for the Dimension

1. Go to Dimensions List
2. Select the Dimension that you want to add dimension values.
3. Select Dimension, Dimension Values in Action Bar
4. Enter the Dimension Value Code and Name

To set up the new dimensions as global or shortcut dimensions

1. Go to General Ledger Setup page to set up the global/shortcut dimension.

Important: Changing a global or shortcut dimension requires that all entries posted with the dimension are updated. To change a global dimension, use the Change Global Dimensions function, but it can be time-consuming and may affect performance and tables may be locked during the update. Therefore, choose your global and shortcut dimensions carefully so that you do not have to change them later.

Setup Default Dimensions for Customer, Vendor, Item and G/L Accounts

• Value Posting Options: Code Mandatory, Same Code, No Code

• If you want to make a dimension required but you do not want to assign a default value to the dimension, leave the Dimension Value Code field blank and then select Code Mandatory in the Value Posting field. Table below shows the example:

  Module	No.	Dimension	Dimension Value	Value Posting
  Customer	C00086	CUSTOMER	C00086	Same Code
  G/L Account	610600	COST CENTRE		Code Mandatory

  
  

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  Chart of Accounts

Chart of Accounts List

• Use [Filter list by] to preview specific G/L account
• Use [Filter totals by] to filter the balance by Global Dimension or Specific Date
• Balance and Net Change
  • Balance is the total across accounting period.
  • Net Change is the total for date filter input in Filter totals by.

G/L Account Category / Account Sub-Category

• User can set up account category for generate the account schedule for financial statements.
• Top-level account category such as Assets, Liabilities, Equity, Income, COGS and Expenses are fixed. User can add or delete lower levels categories.
• G/L Account Categories List
  • • • Select Edit List action to add or edit G/L account category.
      • Select Indent / Outdent / Move Up / Move Down action for arrange the sub-category level.
      • Enter G/L Account No. in G/L Accounts in Category for setup the account directly.

To Create new G/L Account

1. Go to Chart of Accounts List than click [New] on the Action Bar.
2. Fill up the basic G/L Account information as below:

• • No
  • Name
  • Income/Balance
  • Account Category
  • Account Subcategory
  • Debit/Credit
  • Account Type
  • Totalling - fill up if the account type is End Total.
  • Direct Posting - unselect for sub-ledger account (eg AR, AP, Bank etc)
  • Default Dimension (if any)
    • Select action button Account/Dimensions if need to setup default dimension for the G/L Account

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Posting Groups

1. 1. Mapping for Balance Sheet Account
      • Bank Account Posting Groups
      • Customer Posting Group
      • Vendor Posting Groups
      • Inventory Posting Setup - (Inventory Posting Group + Location)
   2. Mapping for Income Statement Account
      • General Posting Setup- (General Business Posting Groups + General Product Posting Groups)

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No. Series

• • No. Series Code
  • No. Series Line
  • No. Series Relationships
  • Default / Manual No.
  • Sales & Receivable (Set Customer and Sales Document No. Series)
  • Purchase & Payable (Set Vendor and Purchase Document No. Series)
  • Inventory Setup (set Item and Inventory Document No. Series)
  • Marketing Setup (setup Contact No. Series)
  • Human Resources Setup (setup Employee No Series)
  • Journal Batch – setup no. series for the journal.

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Accounting Period

1. 1. Create New Accounting Period
      • Only 12 period, will not have 13 periods for audit adjustment.
   2. General Ledger Setup
      • Allow Posting From & Allow Posting To
   3. User Setup
      • Allow Posting From & Allow Posting To per user

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General Ledger Setup

General Ledger Setup

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• Accounting Periods
• Dimensions
• User Setup
• Posting Group and Posting Setup

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Sales & Receivable Setup

1. Discount Posting

Discount posting can be configured in Sales and Receivable set up with following options.
Case Example:

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Number series configuration for sales documents

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Purchase & Payable Setup

1. Discount Posting

Same logic with Discount Posting setup in Sales & Receivable Setup.

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Number series configuration for Purchase documents

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Inventory Setup

1. New configuration in Business Central

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• Number series configuration for Inventory Documents

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Fixed Assets Setup

1. FA Location
2. FA Class
3. FA Subclass
4. Depreciation Book
5. FA Journal Setups – Action button in Depreciation Book Card.
6. FA Setup (Set FA No. Series)

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Marketing Setup

1. Interaction – set up the business relation code.
2. Numbering – setup the number series for Contact Nos.

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Master Setup

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Customer

** Mandatory Field

1. 1. ### **{}No. (System Generates / Manual Input according to No. Series setup)
      1. Name
      2. Sell-to Address
      3. **{}Gen. Bus. Posting Group (determine Income Statement Accounts)
      4. **** Customer Posting Group (determine Balance Sheet Accounts)
      5. Currency (if blank = LCY)
      6. Payment Terms Code
      7. Shipment Method Code
      8. Default Dimensions
         • System auto default Customer No. as Same Code Dimension
      9. Ship-to Address

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Vendor

** Mandatory Field

1. 1. 1. **{}No. (System Generates / Manual Input according to No. Series setup)
      2. Name
      3. Address
      4. **{}Gen. Bus. Posting Group (determine Income Statement Accounts)
      5. **** Vendor Posting Group (determine Balance Sheet Accounts)
      6. Currency (if blank = LCY)
      7. Payment Terms Code
      8. Location
      9. Shipment Method Code

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Employee

Create Employee for record and reimburse employees' expenses in a similar way as of vendors.
Mandatory Field

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Note: Employee transactions can be posted in the local currency only. Reimbursement payments to employee do not support discounts and payment tolerances.

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Item

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Create New Item

** Mandatory Field

1. 1. 1. **{}No. (System Generates / Manual Input according to No. Series setup)

If number series is separate for different type of item, user can click the \[…\]button next to No. field to select the appropriated no. series.

1. 1. 1. Description
      2. Description 2
      3. **{}Base Unit of Measure
      4. **{}Gen. Prod. Posting Group (determine Income Statement Accounts)
      5. **** Inventory Posting Group (determine Balance Sheet Accounts)
      6. **{}Type (Options: Inventory, Non-Inventory, Services)

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Inventory Type

The Inventory type (i.e. "Type" in item card) involves full tracking of inventory quantity and value. Therefore, all item transaction types, and item handling features are supported.
The Service and Non-Inventory types do not involve tracking of inventory quantity and value. Only selected item transaction types and features are supported.

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Copy Item Function

Open the item card which intended to make a copy then select Function => Copy Item in action bar.

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Item Template

Setup template for fill up default value for different type of items.

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Bank Account

** Mandatory Field

1. 1. 1. **{}No. (Manual Input)
      2. Description
      3. Currency (if blank = LCY)
      4. **{}Bank Account Posting Group (determine Income Statement Accounts)

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Fixed Assets

** Mandatory Field

1. 1. 1. **{}No. (Manual Input)
      2. Description
      3. Depreciation Book Code
      4. **{}Posting Group
      5. Depreciation Method
      6. Depn. Starting Date
      7. No. of Depn. Years

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Analysis View

Analysis View allow user to setup the analysis dimension for attach to Account Schedule or preview the report by Analysis View.

1. 1. Setup Analysis View – in Analysis View List, select New for add the Analysis View Card then enter the information's below:
      • Code and Name.
      • Account Source – select G/L Account.
      • Account Filter – enter the G/L Account that you want to see in the report. Lave blank if show all G/L account.
      • Dimension – enter the dimension that you want to see in the report. Max 4 dimension can be select in analysis view.
   2. Analysis by Dimensions – in Analysis View List, select Analysis by Dimensions.
      • Select the criteria in the page then click Show Matrix to preview the Analysis View.

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Account Schedule

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Account Scheule Layout

Account Schedules allow the financial users to create their own financial reports & statements.

1. 1. Column Layout – Determine how the numbers will be displayed in column, for example.
      • Multiple periods showing monthly columns.
      • Columns showing the period to date previous year/month and variance to current.
   2. Row Layout – The row it planned to show on report.

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Create Column Layout

1. Create or edit column layout.
2. Select an account schedule and then select Process > Edit Column Layout Setup.
3. In the Name field, select an existing column layout or create a new one.
4. Sample for column layout.
   1. Compare amount with last month.
      • For compare the amount for current month and last month, enter "-1M" in Compare Date Formula column
      • For calculate the difference, enter the calculation in Formula column.

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For more information on formulas, please see the details by the link below:
https://docs.microsoft.com/en-us/dynamics365/business-central/bi-how-work-account-schedule

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Create Account Schedule

Create new account schedule.

1. Go to Account Schedule Page than Click [New [on the Action Bar

2. Fill up the Name and Description for the new account schedule.
3. Select the default column layout.
4. (Optional) Assign Analysis View for filter account schedule by Dimensions if needs.

Note: assign analysis view to account schedule for use the dimensions that are assigned to the analysis view. Otherwise, only two global dimensions in an account schedule can be use.

Copy Account Schedule

Select account schedule that you want to make a copy then select Process > Copy Account Schedule in action bar.

Filter account schedule by using dimension.

Steps for setup dimension filter in row.

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1. Select an account schedule and then select Process > Edit Column Layout Setup.
2. In the Name field, select an existing column layout or create a new one.
3. Use the personalize function to add the column for Dimension.
4. Select a line then enter the dimension value in the dimension column.

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Finance Operation

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General Journal

• Create New Batch and Assign No. Series / Select existing batch.
• Enter Entries

• Renumber Document No. => Actions/Functions
• Preview Posting => Actions/Posting
• Standard General Journal

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Account Receivable

1. 1. Cash Receipt Journal

• Create New Batch and Assign No. Series / Select existing batch.
• Enter Entries
• Applies-to Doc. No. *System auto fill-in Amount on entry line.
• Apply multiple entries – select Process =>Apply Entries…
  1. Register Customer Payment
• Go to customer page, select customer, and then select Process > Register Customer Payments.
• Set up for select batch and balance account.

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Payment Journal

1. 1. Payment Journal

• Create New Batch and Assign No. Series / Select existing batch.
• Enter Entries
• Applies-to Doc. No. *System auto fill-in Amount on entry line.
• Apply multiple entries – select Process =>Apply Entries…
  1. Pay Vendor
• Go to vendor page, select vendor, and then select Process > Pay Vendor.
• Select vendor ledger entries, and then select Process -> Create Payment.

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Recurring General journal

1. 1. Recurring Method

      Balance	The balance of the account on the line is allocated among the accounts and dimensions specified for the line on the Allocation page. For example, the allocation of an expense account across departments.
      Fixed	Use when the journal amount is the same each period. The amount in the journal line remains unchanged after posting. For example, monthly fixed expenses such as rent.
      Variable	Use when the journal amount is different each period. The amount on the journal line is cleared to zero after posting. For example, monthly variable expenses such as salaries and wages.

      
      

   2. Recurring Frequency

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Enter dimension for the entry if needs.

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Reverse Entry

1. 1. Reverse the general ledger entry.
      • Go to General Ledger Entries page then select the entry that you want to reverse.
      • Select Reverse Transaction action.
      • On the Reverse Transaction Entries page, select Reverse action.

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1. 1. Create a sales credit memo for reverse.
      • Open the posted sales invoice that you want to reverse then select Create Corrective Credit Memo action button.
      • In the credit memo, edit the information if needs, then select Apply Entries action button.
      • On the Apply Customer Entries page, select the line with he posted sales document that need to reverse then select Applies-To ID action button.
      • Post the credit memo for reverse the invoice.

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Pages

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G/L REgister

All double entries posted.

1. 1. Report – shows the related entries per register.
   2. Archive – preview the related entries on G/L Registers list

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General Ledger Entries

All double entries posted.

1. 1. G/L Dimension Overview
   2. Reverse G/L Entries
   3. Change Posting Description
   4. Show change history for the entries

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Customer Ledger Entries

Sub-ledger of all "Customer" Type Balance Sheet Entries.

1. 1. Accounts Receivable
   2. Received in Advance.
   3. Apply Entry
   4. Unapplied Entry

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Vendor Ledger Entries

Sub-ledger of all "Vendor" Type Balance Sheet Entries.

1. 1. Accounts Payable
   2. Deposit Paid

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Bank Ledger Entries

Sub-ledger of all "Bank" Type Balance Sheet Entries.

1. 1. If use Bank Reconciliation Function in system. Have indicator for validated bank entries.

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Reports

• Account Schedule – Balance Sheet
• Account Schedule – Income Statement
• Trial Balance
• Customer Statement
• Customer Detailed Aging
• Customer – Summary Aging
• Aged Accounts Receivable
• Aged Accounts Payable
• Fixed Assets Book Value 01
• Inventory Valuation

*Select Explore All to preview all Business Standard Report for each functional area.

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Month End & Year End Closing

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Month End

1. Calculate Depreciation.
2. Post Recurring Journal.
3. Check all journal batches.
4. Bank Account Reconciliations
5. Exchange Rate Update
6. Adjust Exchange Rates
   • Enter Ending Date for exchange rate adjustment.
   • G/L entries for Currency Gain and Losses account to be generated.

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Year end

1. 1. Check all Journals, Orders, Invoices section

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