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Clarification on G/L Account Mapping for Inventory Accrual Interim Account

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Posted on by Jainam M. Kothari

15,735 Super User 2026 Season 1

In case of receipt of goods but invoice not yet received, when goods are received in our warehouse and the invoice will be posted at a later date, the following G/L entry is generated in Microsoft Dynamics 365 Business Central:

Inventory Stock A/c (Balance Sheet – Inventory Posting Setup) ............. Dr.

To Inventory Accrual Interim Account (Income Statement – General Posting Setup)

Currently, in the General Posting Setup, the Inventory Accrual Interim Account is mapped to an Income Statement account.

However, as discussed with our Finance Head, this account ideally should be mapped to a Balance Sheet account, since it represents an expected liability for goods received but not yet invoiced.

Could you please advise whether the Inventory Accrual Interim Account can be configured under the Balance Sheet instead of the Income Statement, and if so, the recommended configuration approach in Business Central?

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Dynamics 365 Business Central

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Rajvi Shah

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Hello,

Yes, Inventory Accrual Interim Account is used to temporarily capture the value of inventory received but not yet invoiced. Since it represents a provisional accrual / GRNI position and not an expense, it should be mapped to the Balance Sheet, preferably under Current Liabilities.

Sr. No	G/L Account Name	Main Category	Sub-Category
1	Inventory Accrual Interim Account	Current Liability	Current Liability

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Jainam M. Kothari 15,735 Super User 2026 Season 1 on at

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Hello @Rajvi Shah

So the meaning is i need to Forcefully set the Balance Sheet Account in Gen. Posting Setup?

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OussamaSabbouh 12,880 Super User 2026 Season 1 on at

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Hello,

Yes set Invt. Accrual Acc. (Interim) to a Balance Sheet account, not P&L, if you want it to represent goods received but not invoiced. In Business Central, when Expected Cost Posting to G/L is enabled, the purchase receipt posts expected cost to interim accounts: Inventory Account (Interim) on one side and Invt. Accrual Acc. (Interim) on the other, then clears/replaces that interim posting when the purchase invoice is posted. So this account is basically a temporary GRNI / accrued liability clearing account, which is why Balance Sheet is the normal and recommended setup. Business Central does not require this field to point to an Income Statement account; it’s a G/L mapping decision in General Posting Setup. Just make sure Inventory Account (Interim) and Invt. Accrual Acc. (Interim) are both designed consistently as interim Balance Sheet accounts, and review any existing open balances before changing it in production.

Regards,
Oussama Sabbouh

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