In business central, posting represents the accounting action of recording business transactions in the company ledgers.
Posting Group
Business Central offers a Posting group for allow user configure for different posting actions.
1. Customer Posting Group
- defines the account for accounts receivables (AR) when posting sales transactions such as Sales Order, Sales Invoice, Sales Credit Memo or journal etc.
2. Vendor Posting Group
- defines the account for accounts payable (AP) when posting purchase transactions such as Purchase Order, Purchase Invoice, Purchase Credit Memo or journal etc.
3. General Posting Group and Posting Setup
- Combination of General Business Posting Group and General Product Posting Group used to determine the G/L account with the entries should be posted to for Sales, Purchase and Inventory Transaction.
Post Documents
After sales or purchase document is posted, related customer ledger entry or vendor ledger entry to be created, also the general ledger entries according to general posting setup also created for recording the business transactions.
Example for Sales and Purchase Accounting Entries
1. Case scenario below is vendor invoice present after the sales invoice is posted.
Accounting Entries for Sales & Purchase | |||||
| Post Purchase Receipt and Invoice | |||||
| Dr | Inventory Account | G/L account according to Inventory Posting Setup | |||
| Cr | Direct Cost Applied | G/L account according to General Posting Setup | |||
| Dr | Purchase Account | G/L account according to General Posting Setup | |||
| Cr | Account Payable | G/L account according to Vendor Posting Group | |||
| Post Sales Shipment and Invoice | |||||
| Dr | Cost of Goods Sold | G/L account according to General Posting Setup | |||
| Cr | Inventory Account | G/L account according to Inventory Posting Setup | |||
| Dr | Account Receivable | G/L account according to Customer Posting Group | |||
| Cr | Sales Account | G/L account according to General Posting Setup | |||
2. Case scenario below is vendor invoice present after the sales invoice is posted.
Accounting Entries for Sales & Purchase | |||||
| Post Purchase Receipt (Expected Cost Posting) | |||||
| Dr | Inventory Account (Interim) | G/L account according to Inventory Posting Setup | |||
| Cr | Inventory Accrual Account (Interim) | G/L account according to General Posting Setup | |||
| Post Sales Shipment (Expected Cost Posting) | |||||
| Dr | Cost of Goods Sold (Interim) | G/L account according to General Posting Setup | |||
| Cr | Inventory Account (Interim) | G/L account according to Inventory Posting Setup | |||
| Post Sales Invoice | |||||
| Dr | Inventory Account (Interim) | G/L account according to Inventory Posting Setup | |||
| Cr | Cost of Goods Sold (Interim) | G/L account according to General Posting Setup | |||
| Dr | Account Receivable | G/L account according to Customer Posting Group | |||
| Cr | Sales | G/L account according to General Posting Setup | |||
| Dr | Cost of Goods Sold | G/L account according to General Posting Setup | |||
| Cr | Inventory Account | G/L account according to General Posting Setup | |||
| Post Purchase Invoice | |||||
| Dr | Inventory Accrual Account (Interim) | G/L account according to General Posting Setup | |||
| Cr | Inventory Account (Interim) | G/L account according to Inventory Posting Setup | |||
| Dr | Purchase | G/L account according to General Posting Setup | |||
| Cr | Account Payable | G/L account according to Vendor Posting Group | |||
| Dr | Inventory | G/L account according to Inventory Posting Setup | |||
| Cr | Direct Cost Applied | G/L account according to General Posting Setup | |||
| Net Result on Trial Balance | |||||
| Dr | Account Receivable | Balance Sheet Account | |||
| Cr | Inventory | Balance Sheet Account | |||
| Cr | Account Payable | Balance Sheet Account | |||
| Dr | Purchase | Income Statement | |||
| Cr | Sales | Income Statement | |||
| Dr | Cost of Goods Sold | Income Statement | |||
| Cr | Direct Cost Applied | Income Statement | |||