03 February 2017
Every accounts package is built around a Chart of Accounts which is used to record and analyse expenditure, income and balances. Microsoft Dynamics NAV® is no exception to this and as standard, it has a Chart of Accounts such as that in the picture.
This allows the accounts to be grouped and totals for individual accounts calculated (highlighted in red in the screenshot). There is also a distinction between Balance Sheet and Income Statement accounts (highlighted in yellow).
That’s OK as far as it goes, but accountants would want more analysis of their Chart of Accounts than that; for instance, identifying Liquid and Fixed Assets or Current and Long-term Liabilities. The individual account codes for these categories may not all be in one group but scattered around the Chart of Accounts so some other way of grouping individual accounts may be required.
Microsoft Dynamics NAV® 2017 has just such a mechanism, known as Account Categories and this article explores what this functionality does.