About an Inventory setup "automatic posting cost"

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Posted on by Ming Chen

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Hi,

There's a setup in inventory "Automatic posting cost", I got the below explain in a post but cannot well understand them.

Would be very appreciate if can have an example.

When a PO invoice for an inventory is created, below entry will be posted.

The Dr Account defined in Purch Account field from General product posting group
The Cr Account defined in Payables Account field from Vendor posting group

If automatic cost posting is enabled, an additional entry will be posted.

The Dr Account defined in Inventory Account field from Inventory posting group
The Cr Account defined in Direct Cost Applied account field from General product posting group

-Regards,

Ming

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Guy McKenzie 1,340 on at

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The key thing here is that this is all about timing.

Ultimately, all of the entries will be posted but will they all be posted at once or in separate processes?

Automatic cost posting means that all the postings happen at the same time. If automatic cost posting is not on, you need to configure a batch job to post the additional entries at a quiet time, typically overnight.

The reason you may want to separate these is that in a business with a high volume of inventory transactions, the system performance is improved by having less postings happening all at once.

I’d say a rough rule of thumb is that automatic cost posting is fine until you hit multiple hundred inventory transactions per day. Once you are posting a high volume, it will become common for several transactions to be hitting the ledgers at once many times during the day. The speed is then noticeably impacted with automatic posting on.

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Inge M. Bruvik 1,165 Moderator on at

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Maybe this blog post will give you some insight into how the costing works in Business Central.

bc365.co/.../

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S.Kawamura 1,532 on at

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HI,

This is an example on Cronus company. Cronus is a sample demo database provided by Microsoft, and you can try below example by yourself.

Create PO and choose preview posting. "Automatic posting cost" is OFF on this demo database.

G/L entries will be create as below.

Bottom 2 lines are entries you described.
>·The Dr Account defined in Purch Account field from General product posting group
>·The Cr Account defined in Payables Account field from Vendor posting group

Upper 2 lines are the *adittional* entries you described
>·The Dr Account defined in Inventory Account field from Inventory posting group
>·The Cr Account defined in Direct Cost Applied account field from General product posting group

Turned "Automatic posting cost" parameter OFF on this database, and then choose preview posting again.
G/L entries will be created as below.

Only 2 lines are entries you described.
>·The Dr Account defined in Purch Account field from General product posting group
>·The Cr Account defined in Payables Account field from Vendor posting group

If you have questions "When will the losted 2 lines be created?" and "Why set automatic posting cost as OFF", Guy McKenzie 's answer will help your understanding.

I hope this helps you.

S.Kawamura

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