Change of inventory posting group - things to consider

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Posted on by Marco V

We are planning to move one of our inventory varieties into a different inventory posting group and will take the following steps to do this:

- create new GL Account (it is important to show this product in a separate GL Account as it represents a unique product)

- create a new inventory posting group and the related inventory posting setup (including the new GL account)

- change the posting setup on the item card

- post a JE to move the inventory value from the old GL Acct to the new GL Acct

- verify ledger and sub-ledger show the same amount

The following should not be an issue:

- We do not purchase or sell this item on POs or SOs.

- The item is used for consumption on some of our RPOs. Unlike most companies, we report output first and input last. After reporting input, we close the RPO out straight away, so we should not have any open RPOs that contain this item at the time of .

Is there anything that I am missing or have not thought of?

Thank you for your help

Marco

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Dynamics 365 Finance

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André Arnaud de Cal... 303,730 Super User 2026 Season 1 on at

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Hi Marco,

I don't know what exactly you mean by the abbreviation RPO.

For reconciliation between inventory and ledger, you should not create a journal to move the value from the old to the new account. However, when reading your post, you might not have an open on-hand inventory value. Or I misunderstood a part.

In case you have on-hand and a financial inventory value, you can better do it in multiple steps:

Create an inventory movement (or adjustment) journal where you ensure the on-hand of the item will be zero.

Depending on the item model group, close the inventory.

Change the item group on the product master

Create an inventory movement (or adjustment) journal where you can post the quantity and value for the item.

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Giorgio Bonacorsi 2,071 on at

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Hello,

The configuration change process is good, but there are some important preconditions to check to avoid any mismatch.
There are situations where orders are posted physically but not yet financially. In those cases, changing the configuration (posting profile) won't affect the new entries, because the order will still use the old posting profile to settle the previous entries.

Therefore, the most secure approach is to avoid leaving orders in a "physically posted but not financially posted" state.
To be clear, this means preventing:

- Purchase orders that have been received (product receipt posted) but not yet invoiced,
- Sales orders that have been shipped (packing slip posted) but not yet invoiced,
- Production orders that have been ended / reported as finished but not yet costed or financially closed.

If you have transactions of this type, you can choose one of the following alternative solutions:

- Conclude them fully before changing the configuration (recommanded approach)
- Leave them as-is, because in most cases they will simply settlef the previous physical transactions using the old posting profile. It's not a problem if you're querying in your trial balance inquiries include all the PO/SO/PR order's events;
- Reverse those transactions via a general ledger journal entry, apply the configuration change, then re-reverse the auto-settle after the order is fully concluded (this is not recommended, and should only be used if absolutely necessary, depending on your trial balance period inquiry)

Thank you,

Giorgio

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Syed Haris Shah 1,566 Super User 2026 Season 1 on at

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Hi @Marco V,

Are you actually on D365 F&SCM, or is this Business Central?

Your terminology (“item card”, “inventory posting group”) sounds more like BC, and the correct technical approach differs quite a bit between the two.
If you confirm the platform and your costing model (Standard vs FIFO/Weighted Avg).

If you find this answer helpful, please consider verifying the answer. 👍

Regards,

Syed Haris Shah

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Marco V 60 on at

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Hi Syed Haris Shah

We are on Business Central and are using standard costs

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Syed Haris Shah 1,566 Super User 2026 Season 1 on at

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Hi @Marco V,

In D365 BC, the approach you mentioned in your question statement is perfectly fine for changing the item posting group for an item. However, there is a small tweak / additional step you should consider, which I believe is missing. Here is a recommended step-by-step approach (assuming the item uses Standard Cost):

1-Pre-checks:

Make sure there are no open POs, SOs, or Production Orders/RPOs for this item.

Run Adjust Cost – Item Entries to ensure the item is fully cost-adjusted.

Check the item’s on-hand quantity and standard cost.

Run the Inventory Valuation report and note the current inventory value.

2-Setup:

Create the new G/L Inventory Account.

Create the new Inventory Posting Group.

Update Inventory Posting Setup to map the new posting group to the new G/L account (and verify related accounts like COGS/WIP if applicable).

3-Change the Item

Open the Item Card.

Change the Inventory Posting Group to the new one.

Save the item.

From this point onward, all future postings will go to the new G/L account.

4-Move the existing inventory value (one-time G/L journal)

Calculate the value to move: On-hand Quantity × Standard Cost (this should match the Inventory Valuation report).

Post a General Journal:

Debit: New Inventory G/L Account

Credit: Old Inventory G/L Account

Amount = current inventory value of the item

This transfers the existing inventory balance to the new account.

5-Verification

Run Inventory Valuation again:

Quantity should be unchanged.

Value should be unchanged.

Inventory account should now be the new G/L account.

Check G/L

Old inventory account decreased by the amount.

New inventory account increased by the same amount.

Check Item Ledger Entries to confirm quantity and standard cost are unchanged.

6-Documentation

Keep the posted G/L journal and before/after Inventory Valuation reports for audit trail.

I would suggest this activity should be performed at month end before closing period.

Please let me know if you need any clarity.

If you find this answer helpful, please consider verifying the answer. 👍

Regards,

Syed Haris Shah

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