General Business Posting Group is used as a combination with General combination with General Product Posting Group used to determine the G/L account with the entries should be posted to for Sales, Purchase and Inventory Transaction.
Case Example below:
Case 1 - ) when you create a sales document , for selling item - the sales header uses the customer card information (Gen. Bus. Posting Group), and the sales lines use the item card information (Gen. Product Posting Group) if the Line Type is ITEM
- The Sales Account posting is determined by the combination of the general business posting group and the general product posting group.
- The cost of goods sold posting (income statement) is determined by the combination of general business posting group and general product posting group.
...
- The accounts receivable posting (balance sheet) is determined by the customer posting group in customer card.
- The inventory posting (balance sheet) is determined by the inventory posting group in Item Card
Case 2 - ) when you create a purchase document , the for expenses payment - the purchase header uses the vendor card information (Gen. Bus. Posting Group), and the purchase lines use the G/L Account Card information (Gen. Product Posting Group) if the Line Type is G/L Account
- The income statement posting according to the G/L account entered in the purchase line
- The accounts payable posting (balance sheet) is determined by the vendor posting group.
Follow below steps to create Gen. Bus Posting Group:
1, Search "Gen. Bus Posting Group"
2, Click "New" & enter the related infomationinformation:
(1) Code
(2) Description of the Code
...
(4) Check the box to automatically insert the GST Bus. Posting Group if filled the Code in the Customer / Vendor Card
Follow below steps to create Gen. Prod Posting Group:
1, Search "Gen. Prod Posting Group"
2, Click "New" & enter the related infomationinformation:
(1) Code
(2) Description of the Code
...
(4) Check the box to automatically insert the GST Prod. Posting Group if filled the Code in the the Item Card
Follow below steps for the General Posting Setup:
1, Search "General Posting Setup"
2, Click "New" & enter the related infomationinformation:
(1) Gen. Bus Posting Group
...