Sunday, May 24, 2015

G/L Account is Block from Direct Post

If your General Ledger (G/L) and subledgers (Customer,Vendor,Bank...) values are not tallying up, as an accountant or bookkeeper you will end up in a mess. In order to reconcile you need to check why it is not get tally and this will take time depending on the transactions amount system has and amount of skills you have in excel and reporting. 

Main G/L accounts that can go wrong are Account Payable, Account Receivable, or Inventory Control Accounts. Main reason for this to happen is users directly post transaction entries to these accounts using journals. 
Therefore how to avoid these mistakes and have a perfect chart of account which tally with your subledgers.

With Microsoft Dynamics NAV you have a very simple method to control this. This functionality called as Block for Direct Posting.

In order to block a account from direct posting, you need to go to particular G/L Account Card and remove the tick mark in the "Direct Posting" check box. 
Once tick mark is removed, Microsoft Dynamics NAV will not allow any user to post journal entries directly to the particular G/L account. (At any given time you can put the tick mark back and allow to post directly).
Let's see what will happen if we try to post an direct entry to this G/L account.

System prompt saying particular G/L account does not take direct entries. 

Users : This is a very small validation available in Microsoft Dynamics NAV, but with these type of small settings you can make your life much simpler. 

Microsoft Dynamics NAV consultant : It is always advisable to inform clients about these small settings before it is too late. 

Please provide your feedback with a comment. 
Thank you and Regards,
Tharanga Chandrasekara

2 comments:

  1. Indeed is a quite good poka-yoke (http://en.wikipedia.org/wiki/Poka-yoke) if you work with complete Nav - planning, production, sales...! G/L accounts for stocks, receivables and supplies should be blocked, fixed assets, VAT as well ...others. Everithing must work out based on Nav setups.

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  2. Hello Tharanga,
    This is awesome note out of possible NAV Problem. I just would like to know the second part of this article.
    What would you do if the client has already posted lots of direct posting and its already not matching the G/L. Subledger != G/L Entries. What is the easiest of way you would suggest in that scenario to reconcile the accounts.

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