Learn how to post and reverse general journal entries in Dynamics 365 Business Central. Correcting errors is easy with these step-by-step instructions.
Navigating the intricacies of financial transactions is a critical aspect of managing any business, and Dynamics 365 Business Central provides robust tools for handling these tasks efficiently. One fundamental process within Business Central is posting and reversing general journal entries, which ensures accurate financial reporting and compliance with accounting standards.
In this step-by-step tutorial, we'll guide you through the essential steps of posting general journal entries in Dynamics 365 Business Central, as well as the crucial process of reversing them when necessary.
Posting a General Journal Entry
In order to show you how to correct a journal entry, we first need to post an incorrect one. Go into Finance and select General Journals.
Select the journal you want to use; we will use the Default journal.
Once you click on the journal name, you will see a list of entries for the journal with a new entry line at the top. This is where you will add the details to post the entry. First, set the Posting Date for the journal entry.
Then, enter the Document Number. This can be the same as other entries or you can start a new one.
Next, set the Account Number by selecting the dropdown menu and clicking on the corresponding account. For this example, we will use Interest on Bank Loans. Once you select the Account Number, the Account Name and Description should populate automatically. You can adjust these if necessary.
Next, scroll to the right and select the Tax Group Code or simply erase the field if it is non-taxable.
Then, enter the Amount of the transaction in both fields.
To the right, select the Balance Account Type and Balance Account Number, in this case, we will use our Bank Account and Checking Account.
Once you have entered all of the information needed, go to the action bar and select Post/Print and then choose Post from the action menu.
This will trigger a popup window asking “Do you want to post the journal lines?” Select “Yes” and then select “Okay” on the next popup that says “The journal lines were successfully posted.”
Now your journal entry is posted and ready to be corrected.
Reversing a General Journal Entry
Starting from your Business Central home screen, select the Search button in the Application Bar.
In the Search Bar, type “General Ledger” and select General Ledger Entries Archive from the list of options.
Locate the entry that needs to be corrected. To do this, you can sort the list of entries by Posting Date, Document Number, or any of the other fields. Select the ellipses next to the Posting Date of the entry and choose Reverse Transaction.
This will open an edit window to Reverse Transaction Entries and you should see the transaction you are trying to reverse. Simply select Reverse from the action bar and click “Yes” when the popup appears saying, “To reverse these entries, correcting entries will be posted. Do you want to reverse these entries?” Another popup will appear saying “The entries were successfully reversed.” Click “Okay” to return to the General Ledger Entries Archive.
To see the changes, you will need to refresh the page or back out to the home screen and enter the General Ledger Entries Archive again through the search bar. Once you re-enter the archive, you will see that there is a reversing entry.
You can also reverse journal entries from your Chart of Accounts. From your Business Central home screen, select Chart of Accounts in your Navigation Menu.
Scroll through the list of accounts or enter the name of the account in the search bar at the top of the screen to locate the account where the entry was posted. Select the account to open the General Ledger Entries for that account.
Locate the entry you want to reverse and click on the ellipses next to the Posting Date, then, select Reverse Transaction.
From here the steps are the same as before: select Reverse from the action menu, select “Yes” in the popup window, then, click “Okay” to return to the account’s entries list.
Training Video: How to Post and Reverse General Journal Entries in Dynamics 365 Business Central
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