General posting setup on Item vs GL code

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Posted on by Community Member

Dear All,

I would like to understand the use of general posting setup.

if I raise a purchase order, and i use a Item code, the posting of GL entry will follow the general posting setup.

What is the same purchase order, and i use a GL account instead? will it follow the general posting setup?

If i use a GL code, and it will not be following the general posting setup, what is the purpose of the general product posting group attribute in a GL code?

for best practice, in a document (Purchase order, sales order, credit memo and etc) do you recommend to avoid using GL code in such documents?

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Community Member on at

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Thanks for the clarification

Refer to the below

usedynamics.com/.../

it seems like suggesting that journal posting can follow posting setup via posting group

So i would assume that, the above only happen when the GL code setup on Direct posting is un ticked?

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Dirk on at

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Hi,

No, there is no recommendation to not use G/L Account in documents. And sometimes G/L Accounts are used/suggested to document lines automatically, for example for service charges.

Let me try with a technical explanation:
If you use documents (like sales order / invoice, purchase order / invoice) Posting Groups are needed, basically because the "Posting Type" (Sales or Purchase) always comes with the document.
And if you use the "Posting Type" then NAV/BC technically requires also the Posting Groups.
That is why you need to have Posting Groups on G/L Account if you want to use the G/L Accounts in documents.
But that doesn't mean that the G/L Account used for a transactions is pulled from the General Posting Setup.

If you specify a G/L Account in a document line then this G/L Account is used. But in the back NAV/BC still does a technical check whether the combination of the Gen. Bus. and Gen. Prod. Posting Group & VAT Bus. and VAT Prod. Posting Group exist in the General Posting Setup / VAT Posting Setup. And if VAT/Tax is invloved, then the G/L Account for the VAT is pulled from the VAT Posting Setup (for items transactions and also for G/L Account transactions).
For items transactions however the G/L Account is pulled from the Gen. Posting Setup.

Hope this helps

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Gavin 2,508 on at

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Hi,

In addition to the excellent advice already posted I just wanted to share this post I wrote giving further thoughts on why posting groups are needed for G/L codes. (I was equally puzzled about the need to assign GL codes to posting groups when I first used BC as well :))

http://thedynamicsexplorer.com/2020/12/18/dynamics-365-business-central-why-do-you-need-to-specify-posting-groups-on-g-l-codes/

I hope this helps.

Thanks

Gavin

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