Overview

The Chart of Accounts (COA) is the complete list of all your financial accounts. It is more than just a list of accounts, it’s a structured framework combining main accounts, financial dimensions, and account structures. Proper planning ensures compliance, accurate reporting, and scalability across multiple legal entities.

Configuration

Path: General Ledger > Chart of Accounts > Accounts > Chart of Accounts

On the action pane click NEW, enter the Name and Description

Main account mask is a simple rule (using # and &) that controls the exact format and length of your account codes, ensuring consistency. For example, &##### forces codes like “S00001” (1 letter + 5 digits)—try “123456” and it blocks with an error.

You can add main accounts in the chart of accounts by clicking NEW under the fast tab Main accounts. There is also an option to add main accounts from the template which is already set.

Main account creation

Path: General Ledger > Chart of accounts > Accounts > Main accounts

In the fast tab General, details such as Main account number, name, account type, reporting type and other details can be added.

Main account type: Asset (what you own, like inventory), Liability (debts, like supplier bills), Equity (owner’s stake), Revenue (sales income), or Expense (costs like rent). D365 uses this for auto-posting rules and balance sheets

Main Account Category: Group for reports: Cash (bank notes), Receivables (customer dues), Inventory (stock), etc. Unlike Account Type, this is flexible and helps generate Profit & Loss summaries without changing core type

Reporting type: Whether it is Header or Empty header

Do not allow manual entry: Restrict direct posting to this account

Currency, Active period, like we can configure as per the requirements.

Also, if you want to suspend a particular account for an entity then it can be done through legal entity overrides option