Tips & Tricks Series: Setting Up Posting Groups in Dynamics 365 Business Central

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Setting up posting groups in Dynamics 365 Business Central allows you to map entities (customers, vendors, items, resources, sales orders, and purchase orders) to general ledger accounts. This saves time for your accounting staff and helps avoid mistakes when they post transactions. The transaction values go to the accounts specified in the posting group for a particular entity, and the posting groups fall under three umbrellas—General, Specific and Tax.

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You can set up the groups using these guidelines: ?

General Posting Groups—this is where you define the customers you sell to, the vendors you buy from, and the items you sell and buy. As you set these groups up, consider how many groups you will need to break down sales and purchases—such as grouping customers and vendors by geographical area or by business type. For product posting groups, consider the number of groups to break down sales by product (items and resources) and purchases by items.

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Specific Posting Groups—Consider creating specific groups for customers, vendors, inventory, bank accounts, and fixed assets. For customer and vendor posting groups, you can define the accounts to use when you post AR and AP transactions. If you use inventory with receivables, the accounts that the sales order lines post to are determined by the general business posting group assigned to your customer, and the general product posting group assigned to the inventory item.

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Tax Posting Groups—These groups allow you to define tax percentages and calculation types that apply to the customers you sell to and the vendors you buy from as well as the items you sell and buy. The number of groups you create might depend on local tax legislation and whether you conduct business internationally.

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Streamline Journal Analysis and Vendor Chargebacks

In addition to saving time for your accounting staff and helping avoid transaction posting errors, the posting groups in Dynamics 365 Business Central enable general journal analysis. For example, you can choose the customer, vendor, or item group you want to post a single document to, and then see the total on a general journal by using the Analyze Function.

To Learn More

To learn more about how to set up posting groups in Dynamics 365 Business Central, check out the full blog on the Western Computer website. We also invite you to subscribe to the Western Computer Dynamics 365 Business Central LinkedIn newsletter. For more information on how to use universal search in Business Central, or for help in designing, deploying or supporting a Microsoft Dynamics 365 solution, contact Western Computer today.

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