Here's how to use the Recurring and Reversing Journal Functionality in Microsoft Dynamics 365 Business Central.
What is a recurring journal in D365 Business Central?
A recurring journal is a general journal with specific fields for managing transactions that you post frequently with few or no changes, such as rent, subscriptions, electricity, and heat. Using these fields for recurring transactions, you can post both fixed and variable amounts. You can also specify automatic reversal entries for the day after the posting date.
How to use the recurring journal in D365 Business Central:
Using the search function, select Recurring Journal:
Select the Recurring Method:
Here's a quick summary of the kinds of Recurring Methods available and what they do.
The amount on the journal line will remain after posting.
The amount on the journal line will be deleted after posting.
The posted amount on the account on the line will be allocated among the accounts specified for the line in the Gen. Jnl. Allocation table. The balance on the account will be thus set to zero. Remember to fill the Allocation % field on the Allocations page.
RF Reversing Fixed
The amount on the journal line will remain the same after posting, and a balancing entry will be posted on the next day.
RV Reversing Variable
The amount on the journal will be deleted after posting, and a balancing entry will be posted on the next day.
RB Reversing Balance
The posted amount on the account on the line will be allocated among the accounts specified for the line on the Allocations page. The balance on the account will be set to zero, and a balancing entry is posted on the next day.
BD Balance by Dimension
The journal line allocates costs based on a G/L account's balance by dimension. You'll be prompted to set the dimension filters to be used to calculate the source G/L account's balance by dimension from which you want to allocate costs. Alternatively, choose the Set Dimensions Filters action later.
RBD Reversing Balance by Dimension
The journal line allocates the costs based on a G/L account's reversing balance by dimension. You'll be prompted to set the dimension filters to be used to calculate the source G/L account's balance by dimension from which you want to allocate costs. Alternatively, choose the Set Dimension Filters action later.
Enter the Recurring Frequency, this field determines how often the entry on the journal line will be posted. It is a date formula field, and it must be filled in for recurring journal lines.
10 days from today
2 weeks from today
If the journal line must be posted every month, enter "1M". After every posting, the date in the Posting Date field will be updated to the same date in the next month.
If you want to post an entry on the last day of every month, you can do one of the following:
Post the first entry on the last day of a month by entering 1D+1M-1D (1 day + 1 month - 1 day). With this formula, the posting date is calculated correctly regardless of how many days there are in the month.
Post the first entry on any arbitrary day of a month by entering 1M+CM. With this formula, the posting date will be after one full month + the remaining days of the current month.
In the Document Type, select whether you are posting a payment, invoice or credit memo. You can use any Document number to identify your journal, however you can also add Variable Definitions:
Current day, for example, Monday
Current week, for example, 52
Current month number, for example, 1
Current month name, for example, January
Current accounting period name, for example, January
Enter Account Type, Account No., Description and Amount.
On the Recurring General Journal page, you can choose the Allocations action to see or manage how amounts on the recurring journal line are allocated to several accounts and dimensions. Note that an allocation functions as a balancing account line to the recurring journal line.
Just as in a recurring journal, you need to enter an allocation only once. The allocation will remain in the allocation journal after posting, so you do not need to enter amounts and allocations every time you post the recurring journal line.
Expiration Date can be entered if required, if the field is left blank, the journal line will be posted every time you post until it is deleted from the journal.
When using recurring general journals to post accruals at the end of a period, it's important to have full control over reversal entries. On the Recurring General Journals page, the Reversal Date Calculation field lets you control the date that reversal entries will be posted when reversal recurring methods are used.
By default, the Reversal Date Calculation field is not available on the Recurring General Journals page. To use the field, you must add it by personalizing the page.
For a step-by-step tutorial, check out our video tutorials on this topic that we've linked below:
Training video: Create recurring journal entries
Training video: Create reversing journal entries
Get in touch with the Kwixand Solutions team if you have any questions about recurring and reversing journal entries or any other Dynamics 365 Business Central related enquiry.