Account Types
Business Central utilizes multiple account types and ledgers to track various balances. These account types include but are not limited to, Bank, Vendor, and Donor/Customer. All account types have their separate ledgers as well as have activity in the G/L Entries.
Bank Accounts
Bank Accounts generally represent real-world liquid assets, such as checking accounts, savings accounts, money markets, and investment pools. Bank Accounts can be deposited into, issue payments, and be reconciled.
1. Bank Accounts are located under Cash Management>Bank Accounts.
2. Each bank account record has a Bank Account Posting Group.
3. The posting group connects the bank account to its corresponding G/L account (typically an asset).
4. Transactions posted to the Bank Account add a line to the bank ledger for the specific bank account. The entry also appears in G/L Entries under the G/L Account listed in the posting group.
Vendor Accounts
Vendor Accounts generally represent payees: both grantees and vendors. Vendor Accounts carry payable balances and have invoices, credit memos, and payments applied to them.
1. Vendor Accounts are located under Expenses>Payees.
2. Each vendor account record has a Vendor Posting Group.
3. The posting group connects the vendor account to a G/L payable account (typically a payable).
4. Transactions posted to the Vendor Account add a line to the vendor ledger for the specific vendor. The entry also appears in G/L Entries under the G/L Account listed in the posting group.
Donor/Customer Accounts
Donor/Customer Accounts represent entities that owe money to the organization, generally in the form of pledges. Donor/Customer Accounts represent receivable balances and have gift entries applied to them.
1. Donor/Customer Accounts are located under Revenues>Donors.
2. Each donor/customer account record has a Customer Posting Group.
3. The posting group connects the customer account to its corresponding G/L account (typically a receivable).
4. Transactions posted to the Customer add a line to the customer ledger for the specific customer. The entry also appears in G/L Entries under the G/L Account listed in the posting group.
G/L Entries
1. From G/L entries, the Source Type, Number, and Name columns indicate the posted activity was posted using an account type other than G/L Account.
2. To view the transaction in the various ledgers (bank, vendor, or customer) highlight the row and then Process>Find entries.
3. Select the applicable ledger to open.
4. The transaction as it appears in the applicable ledger is shown.