I know there’s always been a confusion to understand this Accounting concept like which account gets Credited and exactly which will get Debited as there’s no generic sign for Debit and Credit. Sometimes Debit means Positive (+) and sometimes it means Negative (-) and the same goes vice versa for Credit. So I just made this small structure which will help you understand when Debit means positive and for which Account Type and the same for Credit.
Here Account Type means either its a Balance Sheet or Income Statement. Debit (+) means this Account will get Debited with a + value and Credit will be in -. The same way this will get Credited + means this Account will be Credited with a + value and Debit will be in -.
I wrote DEALER on the top because it will make easier for you to remember the Accounts. First three DEA means Draw, Expense and Asset and last 3 LER means Liability, Equity and Revenue.
The Biggest hurdle for an Accounting guys always comes into play when they have to close the financial year. Closing a financial year in NAV means you need to execute all batch jobs that updates your accounting like – “Close Income Statement”, “Post Inventory Cost to GL”, “VAT Settlement” etc. While executing any of these or reconciling if there is variation in Amount then its like a nightmare for the Accounting people . Variation normally occurs in AP(Account Payable) and AR(Account Receivable). Now how come these accounts get affected, These account get affected when some one has directly executed and posted to these accounts via General Journal.
Microsoft Dynamics comes with a very simple built in standard method to control this. You simply have to navigate to Chart of Accounts -> Open G/L Account card -> Off the Direct Posting Flag.
Now if you will go and try posting to this account from General Journal, NAV will stop you displaying a genuine error to you.
As discussed system throws an error saying – Direct Posting must be equal to Yes in G/l Account Card with /L number.
At any time if you feels like enabling it you can navigate to same place and make the Flag on.
NOTE – ALWAYS DISCUSS THIS WITH YOUR ACCOUNTING TEAM IF YOU ARE NOT THE ACCOUNTING GUY.