Posting in G/L Accounts

in the g/l accounts, you can see that there are 2 fields where you can specify posting groups; gen. bus. group and gen. product posting group. why do you need these posting groups to be specified here when it is already specified in the customer, vendor and item cards? does it make use of the posting setup table?


  • Hi Jordi

    the reason is following:
    If you post some let's say cost directly to G/L account using GL ledger, then on the G/L line is not reference to the vendor neither to the Item. There is only G/L Account No. Therefore in such case is Navision looking for the posting groups in the G/L Account card.

    Michal

  • The general posting setup is the matrix of the general business posting groups and the general product posting groups. These two groups are refered to as the General posting groups and usually direct posting to the income statement accounts. This is true in the set up of Cronus. The posting groups you refer to in the customer, vendor and item cards (also in fixed assets and bank account) are sometimes called specific posting groups. These posting groups specify the balance sheet accounts usually. There is one exception to this rule on the resource card where there is no specific posting group (because resources are not inventoried).

    I'm not sure exactly what the posting setup table is but if you are talking about the general posting setup, that is needed to link the business posting groups and the product posting groups and assign the gl account to the combination of posting groups.
    A simple example:
    Journal entries for a sale:
    dr. AR --> specified by customer posting group
    cr. Sales --> specified by business posting group
    dr. COGS --> specified by product posting group
    cr. Inventory --> spec. by inventory posting group

    Inventory and AR are pretty straightforward but for sales and COGS, there are more possibilities depending on the combination of business and product. If you only had 2 business posting groups Domestic and International and 2 product posting groups, Little and Big, you can possibly post to 4 different sales accounts and 4 COGS accounts. You could have a Domestic, Little Sales account, Domestic Big Sales, International Little Sales .....

    Hope this is useful.
    Regards,
  • Moreover it's necessary when you want to use G/L account in the sales or purchase lines. For example if you want to sell something directly to G/L account using sales invoice, on this G/L account you must define Gen.Prod.Posting Group and VAT Prod. Posting Group.
  • i assume that the reason why the prod. posting group and the vat posting group is specified only for tax reasons right? but if it is not tax related then i don;t suppose it is neccessary to put in any posting groups to the g/l accounts?
  • The field may be used for tracking-purposes: If an account has transactions with another posting-group than the one specified on the account itself, you will be able to find theese transactions.

    This is simular to the "Debit/Credit"-field - a "facility nice to have".

    But correct, only the VAT-groups are the really necassary ones in case you are using the account directly.
  • In reply to Anfinnur:

    would there be any situations where you would need posting setup on balance sheet accounts as you would rarely post direct to these?

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