Business Central Purchase Order Processing Posting Account Setups
One of the most confusing parts of Business Central is the posting groups and how they interact with each other when posting in Business Central. There are probably over 10 different types of posting groups depending on what modules you are using. This blog is going to describe the posting groups associated with Purchase Order Processing, Vendors and Inventory items. When you are using the Purchase Order Processing module with items all of the posting groups are called upon at different transaction posting times. These will be broken up by inventory, non inventory, receiving, invoicing and receiving and invoicing at the same time. Let’s not forget about setting in the inventory module which also drives the posting. I have attempted to make this as simple as it can possible!
Here we go!
Inventory Setup
These two little sliders change the way the purchasing module posts to the general ledger and what posting accounts are used.
Automatic Cost Posting
This is what the documentation states. Specifies if value entries are automatically posted to the inventory account, adjustment account, and COGS account in the general ledger when an item transaction is posted. What does this mean?
If Automatic Cost Posting is not enabled, it will make only one entry to the general ledger when the PO is invoiced and will not make an entry if posting a Receipt only.
These are the accounts that are hit during this transaction.
The DR is the General Prod Posting Group / Purch Account
The CR is the Vendor Posting Group / Payables Account
If Automatic Cost Posting is enabled, it will make only the entry above and an additional entry to the general ledger when the PO is invoiced and again it will not make an entry if posting a Receipt only.
The DR is the Inventory Posting Group / Inventory Account
The CR is the General Prod Posting Setup / Direct Cost Applied Account
Expected Cost Posting
The second part of this is the other slider Expected Cost Posting and the documentation states.
Specifies if value entries originating from receipt or shipment posting, but not from invoice posting are recoded in the general ledger. Expected costs represent the estimation of, for example, a purchased item’s cost that you record before you receive the invoice for the item. To post expected costs, interim accounts must exist in the general ledger for the relevant posting groups. Expected costs are only managed for item transactions, not for immaterial transaction types, such as capacity and item charges. If you have non inventory or service items it does not apply as well.
PO Receive Only Inventory Item
When you perform a Receive only for an inventory item transaction.
These are the accounts that are hit during this transaction.
The DR is the Inventory Posting Group / Inventory Account Interim
The CR is the General Prod Posting Setup / Invt Accrual Acc Interim
When you invoice the same transaction these are the postings that occur.
The DR is the General Prod Posting Setup / Purch Account
The CR is the General Prod Posting Setup / Direct Cost Applied Interim
The DR is the General Prod Posting Setup / Invt Accrual Acc Interim
The CR is the Inventory Posting Group / Inventory Account Interim
The DR is the Inventory Posting Group / Inventory Account
The CR is the Vendor Posting Setup / Accounts Payable
PO Receive/Invoice Inventory Item
When you perform a Receive/Invoice for an inventory item transaction.
These are the accounts that are hit during this transaction.
The DR is the General Prod Posting Group / Purch Account
The CR is the General Prod Posting Setup / Direct Cost Applied Account
The DR is the Inventory Posting Group / Inventory Account
The CR is the Vendor Posting Group / Payables Account
PO Receive Only Non Inventory/Service Item
When you Receive only a non inventory or service item there is no effect on the general ledger.
PO Receive/Invoice Non Inventory/Service Item
When you perform a Receive/Invoice for a non inventory item transaction.
These are the accounts that are hit during this transaction.
The DR is the General Prod Posting Group / Purch Account
The CR is the Vendor Posting Group / Payables Account
Good luck and I hope this shortcuts your setup needs.