General Ledger Setup
- Lango: Language and translation manager
- Tomas Nagy
- Iveta Jančová
- Kalmová Silvia
Principles
The General Ledger Setup table is used to set up general information about how companies do their accounting.
The default setup includes the chart of accounts and standard posting groups, which streamlines the process of assigning default ledger accounts to customers, vendors, and OCs. A description of the chart of accounts settings is in separate chapters of this document.
MS regularly updates the documentation for this setting area. Documentation valid for BC22 is available at the following link:
Set Up Financial Processes - Business Central | Microsoft Learn
Managing Finances - Business Central | Microsoft Learn
CZ localization documentation valid for BC22 is available at this link:
Core Localization Pack for Czech - Business Central | Microsoft Learn
In this documented area, the settings in selected tabs of the General Ledger Setup table are described, as well as recommended settings that are not related to the settings described in another chapter.
The settings of the following tabs are not described here:
Cash Desk
A description of the settings is in the chapter Nastavení Pokladen
VAT (VAT)
A description of the settings is in the chapter Nastavení DPH, Kontrolní hlášení DPH a Souhrnné hlášení
The General Ledger Setup table can be found in the Company Information table menu or in the Manual Setup list or by searching through the system magnifying glass.
Dependencies and assumptions
Additional dial settings may be required to complete.
Description of the documented area
General Ledger Setup – General Tab
Description of field settings:
Allow Posting From
The user enters the date from which posting is enabled in the company.
Allow Posting To
The user enters the latest date on which posting is allowed against the company.
Allow Deferral Posting From
A user enters the earliest date on which accruals are allowed to be posted in the company's books.
Allow Deferral Posting To
A user enters the last date on which accruals are allowed to be posted to the company's books.
Register Time
A flag that specifies whether the program will track the user's time usage (time recording). The time spent in the system is automatically recorded in the User Time Registers table each time the user leaves the program. This setting can be overridden on a per-user basis by filling in the Registration Period field in the User Settings window.
Local Address Format
The user selects the local address format for the printouts. If the address contains a Country/Region Code, the address format that is set for the country/region code will follow the format set in this field. Withdrawal options:
Post Code+City
City+Post Code
City+County+Post Code
Blank Line+Post Code+City
Local Address Format (Local Cont. Addr. Format)
The user selects the location of the contact's name in the mailing address. This setting applies only to the country of operation of the leasing company. For other countries/regions, the address format is set in the Country/Region table. Withdrawal options:
First – The system will print the contact's name as the first line of the mailing address, followed by the company name, then the street address, and so on.
After Company Name – The system will print the company name as the first line and the contact name as the second line, followed by the street address, and so on.
Last – The system will print the contact's name as the last line of the mailing address.
Require Country/Region Code in Address
Specifies whether the Postal Code, City, and County fields are cleared when the value in the Country/Region Code field changes.
Accuracy of the ok. Invoices (LCY) (Inv. Rounding Precision (LCY))
The user specifies the size of the interval that will be used when rounding invoiced amounts in your local currency. E.g.
1.00 – rounded to whole numbers
0.05 – rounded to a number divisible by 0.05
0.01 – no rounding, common decimal currency
The user specifies a method for rounding the invoiced amount. This setting is used by the system in addition to the rounding interval that is specified in the Precision Ok field. Invoice (LCY) (Inv. Rounding Precision (LCY)). Withdrawal options:
Nearest (Nearest) – the system rounds up digits that are >=5, otherwise it rounds down.
Up – the system rounds the amount up.
Down – The system rounds the amount down.
Check G/L Acc. Deletion After)
A user can enter a date that will determine if and when G/L accounts can be deleted. If this field contains a date, G/L accounts with entries after that date inclusive cannot be deleted.
Block Deletion of G/L Accounts
Specifies whether to prevent users from deleting G/L accounts with G/L entries that are after the date in the Check G/L Account Deletion After field. For example, by blocking deletion, you can prevent the loss of financial data that your business should keep due to regional country/region requirements.
Check G/L Account Usage
A flag that specifies whether the system will protect against the deletion of G/L accounts that are used in the setup tables. If this check box is selected, and a user attempts to delete a G/L account, the system checks to see if the account is in use in any of the following tables:
Currency
Customer Posting Group
Vendor Posting Group
Job Posting Group
General Posting Setup
Bank Account Posting Group
VAT Setup Posting Groups
FA Posting Group
Inventory Posting Setup
Service Contract Account Group
General Journal Template
General Journal Batch
Distribution Diary (Gen. Jnl. Allocation)
FA Allocations
If a G/L account is used in one of these tables and this check box is selected, the G/L account can't be deleted.
Mark Cr. Memos as Corrections
In this field, you can specify if you want the program to automatically mark the new credit memo as a provision. If this check box is selected when posting a provision, the program will post a negative debit amount instead of a credit amount, or a negative credit amount instead of a debit amount. Therefore, the Debit Amount field (or the Credit Amount field) on the relevant account will contain both the original entry and the adjustment entry, which together will have no effect on the debit (or credit) balance.
EMU Currency
the user ticks the box if the local currency is an EMU currency.
LCY Code
The user manually enters the code for the local currency. The code can be alphanumeric, max. 10 characters. This code will appear on invoices and reports that are in LCY.
Discount Excl. VAT (Pmt. Disc. Excl. VAT)
Flag that specifies whether the payment discount will be based on amounts inclusive or exclusive of VAT. If the Discount adjustment field is activated, the Discount discount excl. VAT field cannot be checked (if the discount is calculated without VAT, no adjustment is needed).
Adjust for Payment Disc.
The user ticks the box when they request the system to recalculate tax amounts when payments are posted that allow discounts.
Unrealized VAT (VAT)
In this field, you can specify whether you want the program to manage unrealized VAT, which is VAT that is calculated but not due until the invoice is paid.
Prepayment Unrealized VAT (VAT)
In the Prepayment Unrealized VAT (VAT) field, you can specify whether you want the program to manage unrealized VAT on prepayments. You can set up the calculation and posting of VAT amounts to temporary general ledger accounts when you post an invoice, and then post them to the correct general ledger account and include them in your VAT statements when the actual invoice payment is posted. If flag Unrealized VAT=Yes, the flag must be Prepayment Unrealized VAT = Yes. However, you can select the Prepayment Unrealized VAT (VAT) check box without selecting the Unrealized VAT check box.
Max. VAT Difference Allowed
In this field, you can enter the maximum allowed amount of VAT correction for the local currency. For example, if you enter 5 for CZK in this field, you can correct VAT amounts up to five dollars.
VAT Rounding Type
The user specifies the VAT rounding method when calculating with the local currency. Withdrawal options:
Nearest (Nearest) – the system rounds up digits that are >=5, otherwise it rounds down.
Up – the system rounds the amount up.
Down – The system rounds the amount down.
Bank Account Nos., Company Officials Nos. and Results No. Schematic (Acc. Schedule Results Nos.)
the user selects a number series code from the "No. Series" code list, which will be used to assign numbers for new records
Bill-to/Sell-to VAT Calc.
This field tells you where the VAT Business Posting Group Code on the order or invoice is being copied from. Multiple choices:
Bill-to/Pay-to No.: The VAT Business Posting Group Code on sales invoices and purchase orders is copied from the payer's data. The VAT Business Posting Group Code on purchase invoices and purchase orders is copied from the creditor's data.
Sell-to/Buy-from No.: The VAT Business Posting Group Code on sales invoices and orders is copied from the customer's data. The VAT Business Posting Group Code on purchase invoices and purchase orders is copied from the vendor's data.
Print VAT specification in LCY
if the Print VAT specification in LCY=Yes flag is displayed separately on documents in the foreign currency. This feature can be used to facilitate tax audits when reconciling VAT payable on invoices.
Use Legacy G/L Entry Locking
The option specifies when the G/L Entry table should be locked during sales, purchases, and service posting to improve performance in a multi-user environment. Consider this setting if: Deadlock situations occur because your solution relies on locking the G/L entry table. You have selected the Automatic Cost Posting check box in the Inventory Setup window.
Show Amounts
The option determines which type of amounts are displayed in journals and entry windows. Multiple choices:
Amount Only - the Amount and LCY fields are displayed
Debit/Credit Only - the fields Debit Amount, Debit Amount (LCY), Credit Amount (LCY) and Credit Amount (LCY) are displayed
All Amounts - All amount fields are displayed.
Hide Payment Method Code
Specifies whether the payment method code is displayed on sales and purchase documents.
Posting Preview Type
Specifies the amount of detail to include in the posting preview. Standard provides an overview of items grouped by type, and you can choose an item type to display details. Advanced shows details for general ledger entries and VAT entries. Other item types remain grouped by type.
Export SEPA mimo euro (SEPA Non-Euro Export)
Specifies whether to use SEPA export for journal lines with currencies other than the euro currency.
SEPA Export p/o Bank Account Data (SEPA Export w/o Bank Acc. Data)
Specifies whether you can export SEPA direct debits by filling in the Bank Branch No. and Bank Account No. fields instead of the IBAN and SWIFT fields on bank and customer account cards.
Enable Data Check
Specifies whether Business Central validates the data that you enter in documents and journals as you type. You can turn on document review, and messages will appear in the Document Check FactBox, such as purchase and sales invoices. If the scan is enabled, each user is then prompted to confirm the scan. For journals, messages are always displayed in the Journal Check FactBox.
Mark Negative Quantity as Correction (Mark Neg. Qty as Correction)
Specifies that posting with negative quantities is automatically marked as corrections. This sets Yes in the Correction field for all rows with a negative amount.
Check Posting Debit/Credit
Specifies a check for corrective postings that have incorrect sign operators.
Do Not Check Dimensions
Specifies whether or not the system has control over the dimension settings through the end of the operation, depending on whether the check box is selected.
Results No. Schematic (Acc. Schedule Results Nos.)
The user selects the code of the number series from the "No. Series" code list.
General Ledger Setup – Dimensions Tab
Description of field settings:
Kód globální dimenze 1 a 2 (Global Dimension 1 Code and Global Dimension 8 Code)
Global Dimensions are set in the Change Global Dimensions table available from the General Ledger Setup table in General -> Change Global Dimensions. In the Global Dimension 1 Code field and in the Global Dimension 2 Code field, the dimensions from the Dimensions code list to be used in this way are selected and set using the (Start) function. A similar procedure is followed when a company needs to change its global dimensions. Changing dimensions can be very time-consuming, so it is recommended to think carefully about the initial setup of these dimensions and to change them minimally.
Kód zkratky dimenze 3 až 8 (Global Dimension 3 Code to Global Dimension 8 Code to Global Dimension 8 Code to Global Dimension 8 Code)
The user selects a dimension from the Dimensions code list.
General Ledger Setup – Background Posting Tab
The field settings on this tab are used to plan the running of processes in the background so that there is no collision when posting identical tasks by multiple users. Therefore, this can be achieved by setting up the job queue to run various batch posting reports in the background.
Description of field settings:
Post with Job Queue
Specifies whether a job queue job is used in the background to post general ledger documents
Post & Print with Job Queue
Specifies whether your business process uses a job queue to post and print sales documents
Job Queue Category Code
Specifies the code for the project task category that you want to associate with background posting
Notify On Success
Specifies whether a notification is sent when posting and printing are completed successfully.
In addition, to fully set up background posting, you must set up and enable the Job Queue Entry Card in the Job Queue Entries table by selecting the appropriate procedure.
General Ledger Setup – Reporting Tab
The field settings in the left column are used to set default Account Schedules for generating reports when using the following reports: Balance Sheet, Income Statement, Cash Flow Statement, Retained Earnings.
Fields to be set in the right column:
Additional Reporting Currency
The user can enter a currency from the "Currency" code list, which will be used as an additional currency for reporting in the Finance application area. After entering the Additional Reporting Currency, the system will automatically record the amounts in LCY and in this additional reporting currency on each G/L entry and on some other entries, e.g. VAT entries.
VAT Exchange Rate Adjustment
In the case of posting in the additional reporting currency, the user can select how the account settings for VAT posting will be adjusted in the VAT Posting Setup table when the exchange rate fluctuates between LCY and the additional reporting currency. Withdrawal options:
No Adjustment – the default option. No exchange rate adjustment is made to VAT accounts
Adjust Amount – LCY will be adjusted for any foreign exchange gains or losses
Adjust Additional-Currency Amount – the additional reporting currency will be adjusted for any foreign exchange gains and losses.
The setting of the additional currency entails other specific restrictions, for example, when closing the books. Before setting up an additional currency, we recommend that you first consider this setting and discuss this functionality with the system supplier. If the user subsequently decides to cancel the additional currency setting, there is no risk involved.
General Ledger Setup - Settlement Tab
Description of field settings:
Accuracy of Ok. Alignment (Appln. Rounding Precision)
setting the "variance" for LCY by which items can vary when applying to still be considered settled. It refers to the settlement of entries in different currencies.
Pmt. Disc. Tolerance Warning
A flag in this field indicates that the user wants to display a warning whenever there is an adjustment between the dates specified in the Payment Discount Date and Pmt. Disc. Tolerance Date fields in the General Ledger Setup table.
Discount Difference Posting (Pmt. Disc. Tolerance Posting)
The user sets up the posting method that the system follows when posting payment variances. Choose from:
Payment Tolerance Accounts – The system posts the payment tolerance to a special G/L account that is set up for the payment variance.
Payment Discount Accounts - The system posts the discount deviation as a discount.
Payment Discount Grace Period
The user sets the number of days that can elapse after the due date of the discount during a payment or refund and still receive the payment or refund.
Payment Tolerance Warning
The flag in this field indicates that the user wants to display a warning each time the settlement has a balance amount within the range of the variance specified in the Max. Payment Tolerance Amount field in the General Setup table.
Payment Tolerance Posting
The user sets up the posting method that the system follows when posting payment variances. Choose from:
Payment Tolerance Accounts – The system posts the payment tolerance to a special G/L account that is set up for the payment variance.
Payment Discount Accounts - The system posts the discount deviation as a discount.
Payment Tolerance % (Payment Tolerance %)
In the Change Payment Tolerance table, the user manually enters the percentage by which the payment or refund may differ from the amount on the invoice or credit note.
Max. Payment Tolerance Amount
In the Change Payment Tolerance table, the user manually enters the maximum allowed amount by which the payment or refund may differ from the amount on the invoice or credit note.
General Ledger Setup – Other Tab
Description of field settings:
User Checks Allowed
field for setting the use of enabled user checks defined in User Setup.
Clearing. Closed Period Entry Pos.Date
Field for entering the posting date for closed period entries when adjusting the inventory value.
Rounding Date
A field to specify the inventory rounding date from the inventory adjustment. This field is not set for OCs.
Follow up:
Understanding VAT Rounding in Documents