Journals & Bank Accounts
Journals are how you record transactions that don't come from documents (sales orders, purchase invoices). Bank accounts link your real-world banks to Business Central. Learn templates, batches, and recurring journals.
Journals in Business Central
Journals are like the blank cheques of accounting.
Sales invoices and purchase orders are pre-structured forms — they know what fields to fill in. Journals are free-form: you specify the debit account, credit account, amount, and posting date yourself. They’re used for transactions that don’t fit neatly into a sales or purchase document — things like rent payments, salary accruals, depreciation, or year-end adjustments.
Olivia uses journals every month for recurring entries (rent, insurance) and for one-off corrections. They’re the Swiss Army knife of BC accounting.
Journal structure: Templates and batches
Journal templates
A journal template defines the type and default behaviour:
| Field | Purpose | Example |
|---|---|---|
| Name | Template identifier | GENERAL |
| Type | Journal type | General, Sales, Purchases, Cash Receipts, Payments |
| Recurring | Is this a recurring journal? | Yes/No |
| Source Code | Audit trail identifier | GENJNL |
| No. Series | Number series for documents | GJ-0001.. |
| Bal. Account Type/No. | Default balancing account | Bank Account / OPERATING |
Journal batches
Within each template, batches are the actual workspaces:
| Purpose | Example Batches |
|---|---|
| Separate batches per user | OLIVIA, MARCUS, SOFIA |
| Separate by purpose | MONTH-END, ADJUSTMENTS, ACCRUALS |
| Separate by approval | DRAFT (not approved), APPROVED (ready to post) |
Why batches matter: Each user can work in their own batch simultaneously without interfering with others. Olivia works on month-end adjustments while Marcus enters AP corrections in a different batch.
Exam tip: Template vs batch
The exam tests this distinction:
- Template = defines the journal TYPE and default settings (number series, balancing account, source code)
- Batch = the actual WORKSPACE where lines are entered and posted
One template can have many batches. Users select a template first, then a batch. After posting, the batch is emptied but not deleted — ready for the next set of entries.
Journal types
| Journal Type | Purpose | Key Feature |
|---|---|---|
| General Journal | Any GL entry | Free-form debit/credit |
| Payment Journal | Vendor payments | Suggest Vendor Payments function |
| Cash Receipt Journal | Customer receipts | Apply to open customer entries |
| Item Journal | Inventory adjustments | Quantity and cost updates |
| Fixed Asset Journal | FA transactions | Acquisition, depreciation, disposal |
| Recurring Journal | Repeated entries | Automatic on schedule |
Bank accounts
Bank accounts in Business Central link your physical bank accounts to the GL.
Setting up a bank account
- Open Bank Accounts (Tell Me > “Bank Accounts”)
- Create a bank account:
| Field | Purpose | Example |
|---|---|---|
| No. | Internal identifier | OPER-BANK |
| Name | Descriptive name | ANZ Operating Account |
| Bank Account Posting Group | Links to GL account | OPERATING → GL 2910 |
| Bank Account No. | Real bank account number | 01-1234-5678901-00 |
| Currency Code | Bank’s currency | NZD (blank = local currency) |
| Bank Branch No. | Bank routing/sort code | 01-1234 |
Bank Account Posting Group
The Bank Account Posting Group maps each bank account to a GL account:
| Posting Group | GL Account | Use |
|---|---|---|
| OPERATING | GL 2910 | Main operating bank account |
| SAVINGS | GL 2920 | Business savings account |
| USD-BANK | GL 2930 | USD foreign currency account |
| PETTY-CASH | GL 2940 | Petty cash float |
Every bank transaction (payment, receipt, transfer) posts to the GL account specified by the bank’s posting group. If Sam creates a new bank account but forgets the posting group, payments won’t have a GL home.
Recurring journals
Recurring journals prepare reusable journal lines for repeated postings. After you post, Business Central updates the lines according to the recurring method and frequency for the next run — but they do not auto-post by themselves.
Setting up a recurring journal
- Select a journal template with Recurring = Yes
- Open the recurring journal batch
- Enter lines with additional recurring fields:
| Field | Purpose | Example |
|---|---|---|
| Recurring Method | How the entry repeats | Fixed, Variable, Balance |
| Recurring Frequency | How often | 1M (monthly), 1Q (quarterly) |
| Expiration Date | When to stop recurring | 31/12/2026 |
Recurring methods
| Method | After Posting | Best For |
|---|---|---|
| Fixed | Amounts stay the same for next posting | Rent, fixed insurance, standard allocations |
| Variable | Amounts are cleared — user enters new amounts | Variable accruals, fluctuating costs |
| Balance | Posts the difference to reach a target balance | Balancing a GL account to a target |
| Reversing Fixed | Posts and immediately creates a reversing entry | Month-end accruals that reverse on day 1 of next month |
| Reversing Variable | Like variable but with auto-reversal | One-off accruals with reversal |
| Reversing Balance | Balance method with auto-reversal | Temporary balance adjustments |
Exam tip: Fixed vs Reversing Fixed
Common exam scenario:
- Fixed — use for permanent monthly charges (rent stays as an expense each month)
- Reversing Fixed — use for accruals that need to reverse at period start (accrue salary expense at month-end, reverse it on the 1st when payroll actually processes)
If the question says “accrue and reverse,” the answer is a Reversing method. If the entry should stick permanently, use Fixed or Variable.
Knowledge check
Olivia wants three people on her finance team to work on month-end journals simultaneously without interfering with each other. How should she organise the journals?
Coastal Traders pays $3,000 rent every month. Olivia wants this to post automatically without re-entering it each time. The amount is always the same. Which recurring method should she use?
Next up: Journals create entries. Now let’s configure the vendor side — accounts payable setup, vendor accounts, and the critical vendor ledger entry chain.