Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

Balance accounts

The first classification type of transactional accounts is balance accounts, which represent the balance sheet report components.

The balance in a balance account is calculated from the day the account opened till the date of reporting. In the year-end transaction, the closing voucher is transferred to the opening balance of the account.

Balance accounts have the following three classifications that represent their nature:

• Assets: This represents the resources that are owned by the organization and are used to carry out business activities, such as producing a product
• Liabilities: This represents the claims against assets; for example, the obligations of borrowing money to acquire machines, or products
• Equity: This represents ...