Is there a way to link the initial entry to an expense account.

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Posted on by RR-07061806-0

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Good day,

I'm looking for information regarding the above, an example of such an entry would be consumables.

Regards

Rosemary

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Dynamics 365 Business Central

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Dhiren Nagar 354 on at

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Hi Rosemary,

The example you gave Consumables, can be mapped using Non-Inventory Items or G/L Account.

What you do is create an Item of type "non-inventory" and assign General Product Posting group to it. Against this General Product Posting group in the General Posting Setup, you need to define the Expense G/L Account in which you need to post the transaction in the "Purchase Account" field. Now when you create a Purchase Invoice with this Item it will directly post to the Expense account in the initial entry.

Another way to do it is by selecting the Expense G/L Account in Purchase Invoice and changing the description on the Purchase line to reflect the consumable you are buying. This will also directly post the to the Expense G/L on intial entry.

I hope this helps. Let me know if your requirement is different than what I explained.

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Sumit Singh

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Yes, in Business Central, you can link an initial entry—such as the purchase of consumables—to an expense account through proper configuration of General Posting Setup, Item Posting Groups, or G/L Account assignment depending on the nature of the transaction.
Scenario: Consumables Purchased for Internal Use (Not Inventory)
If consumables are not tracked as inventory (e.g., office supplies, cleaning materials), you should:
1. Use a G/L Account Directly in the Purchase Line

In the Purchase Invoice or Purchase Order, select Type = G/L Account.
Choose the appropriate Expense Account (e.g., "Consumables Expense").
This directly posts the expense to the selected account.

2. Assign Dimensions (Optional)

Add dimensions like Department, Project, or Cost Center to track usage.

Scenario: Consumables Tracked as Inventory but Expensed Immediately
If consumables are received into inventory but expensed immediately, you can:
1. Create a Specific Item Posting Group

Define an Item Posting Group called CONSUMABLES.
In this group, set:
- Inventory Account = Expense Account (e.g., "Consumables Expense")
- COGS Account = Same or another expense account if needed

2. Assign the Item to This Posting Group

When creating the item (e.g., "Cleaning Cloths"), assign it to the CONSUMABLES posting group.

3. Purchase via Item Type

Use Type = Item in the purchase line.
The system will post directly to the expense account via the posting group setup.

Scenario: Consumables Purchased via Purchase Requisition or Planning
If you're using Purchase Requisition or Planning Worksheets, ensure:

The Requisition Line or Planning Line uses the correct G/L Account or Item Posting Group.
The Purchase Order generated inherits this setup.

Example Entry

Document Type	Type	No.	Description	Quantity	Direct Unit Cost	Account Used
Purchase Inv.	G/L Acc.	6510	Office Supplies	10	50.00	6510 - Consumables Exp.
Purchase Inv.	Item	C-001	Cleaning Cloths	100	2.00	Via Item Posting Group

Note: This response was created in collaboration with Microsoft Copilot to ensure clarity and completeness. I hope it helps to some extent.
Mark the Answer as Verified if this is Helpful.

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DAnny3211 11,397 on at

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Hi Rosemary,

Yes, in Dynamics 365 Business Central, you can link the initial entry to an expense account by setting up the correct posting groups and using General Journals or Purchase Journals. For example, if you're entering consumables as an expense, you can:

Use a General Journal to post a direct expense.

Select the appropriate Expense Account (e.g., Consumables) in the Account No. field.

Ensure the Bal. Account Type and Bal. Account No. are set correctly (e.g., Bank or Vendor).

Post the journal to record the expense.

Alternatively, if you're using Purchase Invoices, make sure the G/L Account for consumables is selected in the line items.

Let me know if this helps or if you need a step-by-step guide!

Best regards,
Daniele

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Yi Yong 2,555 Super User 2025 Season 2 on at

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Hello,

Are you asking in Purchase or Sales as the point of entry?

Sales will be easy, you can point the COGS Account in General Posting Setup to an expense G/L.

For Purchase, it is not recommended to do so because your inventory sub-ledger will be out-of-balance unless the item is set to Type: Service or Non-Inventory.

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RR-07061806-0 611 on at

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Good day,

Apologies Purchasing...

Regards

Rosemary

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RR-07061806-0 611 on at

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Good day,

Thank you all for your responses, I'm in the process of testing the options given. Please note the consumable item will be created as non-Inventory and I would like to receive the items as per PO.

Regards

Rosemary

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YUN ZHU 95,331 Super User 2025 Season 2 on at

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As far as I know, Non-Inventory items should also be available for purchase.

More details:

https://learn.microsoft.com/en-us/dynamics365/business-central/inventory-about-item-types?wt.mc_id=DX-MVP-5004336

Hope this helps.

Thanks.

ZHU

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Sohail Ahmed 11,136 Super User 2025 Season 2 on at

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Hello,

Another simple way is to book the Purchase Invoice directly to an Expense G/L Account and just update the line description with the consumable details. This posts straight to the expense account on the initial entry.

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