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Posting Groups Setup

Posting Groups Setup

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Last updated: Oct 29, 2024Version comment
12 min read

Principles

If you use other areas of the application in addition to general ledger, and you post to customer, vendor, property, item, or resource balances, you must set up a link between those balances and the general ledger accounts. If you're using only the Finance region, you don't need to set up posting groups.

To create a connection between the different areas of the application and finance, Posting Groups. You must first set up the chart of accounts, and then set up the posting groups. When posting sales, purchasing, and other transactions for which a general ledger account is not directly specified, posting groups allow mapping to the appropriate general ledger account. For example, when you sell items to a customer based on a sales order, G/L accounts aren't directly entered. When you use the Navigate function to check invoice posting, you find that the document has been posted to G/L accounts. This happens precisely because customers and items have assigned posting groups that determine the general ledger accounts.

There are three basic categories of posting groups:

  • General

    • They define who you buy from and sell to, or what you buy and what you sell. This category includes the following code lists:

      • Gen. Business Posting Groups

      • Gen. Product Posting Group

      • General Posting Setup

  • VAT

    • They define the tax rates and calculation types that apply to who you buy from and sell to, or what you buy and what you sell. This category includes code lists

      • VAT Business Posting Groups

      • VAT Product Posting Groups

      • VAT Posting Setup

  • Specific

    • They define records for analytical records. This category includes the following code lists: 

      • Customer Posting Groups

      • Vendor Posting Group

      • Bank Account Posting Groups

      • FA Posting Groups

      • Inventory Posting Groups

      • Inventory Posting Setup

      • Employee Posting Group

      • Job Posting Groups

      • Posting groups of service agreements (Serv. Contract Acc. Gr. Codes)

The settings of posting groups are always described in the relevant chapter for the given area:

The document does not describe posting groups related to standard modules that are not used in OneCore (warehouses, projects, service)
MS regularly updates the documentation for this setting area. Documentation valid for BC22 is available at the following link:

Posting Group Setup - Business Central | Microsoft Learn

Dependencies and assumptions

To complete it, it may be necessary to set up other code lists, especially the financial accounts of the Chart of Accounts

Setting Up General Posting Groups


Gen. Bus. Posting Group

This posting group determines who you buy from and who you sell to.

You create General Business Posting Group codes to represent your customers and vendors. For example, a General Business Posting Group might describe where a customer or vendor is located.

Use codes that are easy to remember and that describe business groups such as DOMESTIC, EU, etc. The code must be unique. You can set up as many codes as you need.

Description of field settings:

  • Code

    • A code that will identify the posting group.

  • Description

    • A short description of the posting group.

  • Default VAT Bus. Posting Group (Def. VAT Bus. Posting Group)

    • If the Automatic insertion field is checked, after filling in the General Business Posting Group, the system will automatically insert the set VAT Business Posting Group (on the customer, vendor, document card)

  • Auto Insert Default

    • if checked, the system automatically inserts the VAT business posting group when the code of the General Business Posting Group is inserted on the card of a new customer or vendor or on a document. The system inserts the posting group filled in the Default VAT Commercial Posting Group field.


Gen. Prod. Posting Group

This posting group determines what you buy and what you sell. You create General Product Posting Group codes for the services, items, and resources that are the subject of your transactions. The General Product Posting Group code determines what item is bought or sold. Use codes that are easy to remember, e.g. GOODS, SERVICES, FIN_FL, FIN_OL, INSURANCE.

Description of field settings:

  • Code

    • A code that will identify the posting group

  • Description

    • Short description of the posting group

  • Default VAT Posting Group (Def. VAT Prod. Posting Group)

    • If the Automatic insertion field is checked, after filling in the General Business Posting Group, the system will automatically insert the set VAT Business Posting Group (on the customer, vendor, document card)

  • Auto Insert Default

    • check if the system should automatically insert the VAT posting group of goods at the moment when the code of the General Posting Group of goods is entered on the item, e.g. product card, financial account, document card. The system inserts the posting group filled in the Default VAT Posting Group field.


General Posting Setup

The General Posting Setup code list is primarily intended for setting up accounting for the purchase and sale of goods and services in the Inventory and Jobs modules. Combine the General Business Posting Group and the General Product Posting Group to set up different sets of general ledger accounts for buying or selling the same items from different vendors or different customers. For inventory, in addition to specifying all possible combinations of general business posting groups and general product posting groups, you should also enter a row for each General Product Posting Group with a blank General Business Posting Group. You can use such a combination in the case of posting in item journals when the transaction does not have a customer or vendor assigned.

Specifics for OneCore

In the General Posting Setup window, you need to create all the permissible combinations of General Business Posting Groups and General Product Posting Groups that you want to use on Financing Contracts and generally on purchase and sales documents. This setting is mandatory!

There is no need to set up revenue and cost accounts for posted business transactions for posting on Financing Contracts or individual (manual) sales or purchase documents. These accounts will be copied to the documents from other settings, in particular from OneCore Posting Setup, Standard Purchase Codes (Recurring Purchase Lines), Standard Sales Codes (Recurring Sales Lines), or financial accounts will be inserted into the documents directly by the user.

For individual combinations of posting groups, it is necessary to set up accounts in OC only for the following fields:

  • Payment Sales Difference Account (Sales Pmt. Tol. Debit Acc.)

  • Credit Payment Variance Sales Account (Sales Pmt. Tol. Debit Acc.)

  • Debit Payment Variance Bill (Purch. Pmt. Tol. Debit Acc.)

  • Credit Payment Variance Account (Purch. Pmt. Tol. Credit Acc.)

The fields are visible only if you have set up payment variances (General Ledger Setup, Payment Tolerance % or Max. Payment Tolerance Amount) in the system (General Ledger Setup, Payment Tolerance % or Max. Payment Tolerance Amount). The set up account is used for payment variance posting if the Payment Tolerance Posting = Payment Tolerance Account field is set in General Ledger Setup.  


Bulk account setup features

The more product posting groups and business posting groups you use, the more lines are displayed in the General Posting Setup window. Setting up general accounting for a business can then mean that a large amount of data needs to be entered.

To make labour easier, you can use the Suggest Account or Copy functions

  • Function Suggest Account

    • fills in the most frequently set account for the same General Posting Group or for the same General Posting Group for the given field of the given Posting Group combination (the highest occurrence is used)

  • Function Copy

    • Fills in the selected lines of the General Posting Setup (lines can be limited by filtering) accounts from the selected combination of posting groups.

Specify the selected source combination of posting groups in the Tasks dialog box and select whether to copy All Fields or Selected Fields. If you require only selected fields, then you turn on the selection in the Sales Accounts, Purchase Accounts, Inventory Accounts, and Manufacturing Accounts fields.


Setting Up Employee Posting Groups

Business Central supports transactions for employees in the same way as for vendors. Accordingly, Employee Posting Groups exist to ensure that employee entries are posted to the appropriate accounts in the general ledger.

Employee transactions can only be posted in local currency. Discounts and payment variances aren't supported for employee payments.

If employees spend their own money during a business activity, you can post the expenses to the employee's account. You can then make the payment to the employee in cash or to the employee's bank account, similar to how you pay suppliers.


Location and Use of Posting Groups

The chapters below list the most important areas in which posting groups are used. This list may not be exhaustive


General Commercial Posting Group:

  • Customer Card

  • Vendor Card

  • Customer Template

  • Vendor Template

  • G/L Account

  • Financing Contract Template

  • Maintenance Agreement; T 4026706 API Maintenance Agreement)

  • Financing Contract

  • Payments Calendar

  • Contract Accrual Lines

  • Insurance Contract

  • Insurance Client Payment Calendar

  • Contract Service

  • Service Payment Line

  • Sales Invoice Header

  • Sales Invoice Line

  • Purchase Invoice Header

  • Purchase Line

  • Sales Advance Letter (Sales Advance Letter)

  • Sales Advance Letter Line

  • Purchase Advance Letter (Header)

  • Purchase Advance Letter Line

  • General Journal Line (Gen. Journal Line)

  • Rent a Car General Posting Setup

  • Tariff Groups


VAT Bus. Posting Group:

  • Customer Card

  • Vendor Card

  • Customer Template

  • Vendor Template

  • G/L Account

  • Financing Contract Template

  • Maintenance Agreement; T 4026706 API Maintenance Agreement)

  • Financing Contract

  • Payments Calendar

  • Insurance Contract

  • Insurance Client Payment Calendar

  • Contract Service

  • Service Payment Line

  • Sales Invoice Header

  • Sales Invoice Line

  • Purchase Invoice Header

  • Purchase Line

  • Sales Advance Letter (Sales Advance Letter)

  • Sales Advance Letter Line

  • Purchase Advance Letter (Header)

  • Purchase Advance Letter Line

  • General Journal Line (Gen. Journal Line)

  • Cash Document Line

  • Tariff Groups

  • Financed Object Setup

Gen. Prod. Posting Group:

  • G/L Account

  • Standard Sales Codes / Recurring Sales Lines

  • Standard Purchase Codes Recurring Purchase Lines

  • Financing Contract Template

  • Financing Contract

  • Payments Calendar

  • Contract Accrual Lines

  • Framework Contract Types (Framework Contract Types; T 4027032 API Ins. Framework Agre. Type); field:

    • Gen. Prod. Posting Group

  • Ins. Frame Agreement Post. Group (Ins. Frame Agreement Post. Group; T 4027033 API Ins.Frame Agr. Post. Group)

  • Insurance Contract

  • Insurance Client Payment Calendar

  • Service Types

  • Contract Service

  • Service Payment Line

  • Sales Invoice Line

  • Purchase Line

  • Sales Advance Letter Line

  • Purchase Advance Letter Line

  • General Journal Line (Gen. Journal Line)

  • Tariff Groups

VAT Prod. Posting Group:

  • G/L Account

  • Financing Contract Template; field:

    • VAT Posting Group Principal

    • VAT Posting Group Interest

    • VAT Posting Group Simple Service

    • VAT Posting Group Special Mode – Tax (VAT P.Gr. Special Mode Tax)

    • VAT Posting Group Special Regime – Non-Tax (VAT P.Gr. Special Mode Non-Tax)

    • VAT Posting Group Whole Paym.

    • VAT Posting Group Simple Ins.

    • VAT Posting Group Simple Fee

  • Financing Contract; field:

    • VAT Posting Group Principal

    • VAT Posting Group Interest

    • VAT Posting Group Simple Service

    • VAT Posting Group Special Mode – Tax (VAT P.Gr. Special Mode Tax)

    • VAT Posting Group Special Regime – Non-Tax (VAT P.Gr. Special Mode Non-Tax)

    • VAT Posting Group Whole Paym.

    • VAT Posting Group Simple Ins.

    • VAT Posting Group Simple Fee

  • Payments Calendar (Payments Calendar; T 4026398 API Financing Contract Line); field:

    • VAT Posting Group Principal

    • VAT Posting Group Interest

    • VAT Posting Group Service

    • VAT Posting Group Special Mode – Tax (VAT P.Gr. Special Mode Tax)

    • VAT Posting Group Special Regime – Non-Tax (VAT P.Gr. Special Mode Non-Tax)

    • VAT Posting Group Simple Ins.

    • VAT Posting Group Simple Fee

  • Framework Agreement Types (Framework Contract Types; T 4027032 API Ins. Framework Agre. Type)

  • Ins. Frame Agreement Post. Group

  • Insurance Contract

  • Insurance Client Payment Calendar

  • Standard Sales Codes / Recurring Sales Lines

  • Standard Purchase Codes Recurring Purchase Lines

  • Service Types

  • Contract Service

  • Service Payment Line

  • Sales Invoice Line

  • Purchase Line

  • Sales Advance Letter Line

  • Purchase Advance Letter (Header)

  • General Journal Line (Gen. Journal Line)

  • Cash Document Line (Cash Document Line

  • Tariff Groups

  • Financed Object Setup

Customer Posting Group:

  • Customer Card

  • Customer Template

  • Financing Contract Template; field:

    • Customer Posting Group

    • Customer posting group for individual. Invoices (Individual Invoice Customer Post. Group)

    • Customer Posting Group for Selling Price (IS)

  • Maintenance Agreement;T 4026706 API Maintenance Agreement)

  • Financing Contract; field:

    • Customer Posting Group

    • VAT Posting Group Deposit

    • Customer posting group for individual. Invoices (Individual Invoice Customer Post. Group)

    • Customer Posting Group for Selling Price (IS)

  • General Journal Line (Gen. Journal Line)

    • the Posting Group field. content varies according to Account Type)

  • Payment Reconciliation Journal – Line

    • the Posting Group field. content varies according to Account Type)

  • Cash Document Line (Cash Document Line)

    • the Posting Group field. the content changes according to the Account Type

  • Sales Invoice Header

  • Sales Advance Payment Templates

  • Sales Advance Letter header.

Vendor Posting Group

  • Vendor Card

  • Vendor Template

  • Purchase Invoice Header

  • Purchase Advance Letter (Header)

  • Maintenance Agreement;T 4026706 API Maintenance Agreement)

  • General Journal Line (Gen. Journal Line)

    • the Posting Group field. the content changes according to the Account Type

  • Payment Reconciliation Journal – Line

    • the Posting Group field. content varies according to Account Type)

  • Cash Document Line

    • the Posting Group field. the content changes according to the Account Type

Bank Account Posting Group

  • Bank Account

  • General Journal Line (Gen. Journal Line)

    • the Posting Group field. the content changes according to the Account Type

  • Payment Reconciliation Journal – Line

    • the Posting Group field. the content changes according to the Account Type

  • Cash Document Line

    • the Posting Group field. the content changes according to the Account Type

FA Posting Group

  • Fixed Asset Card – Lines (Fixed Asset Card – Lines; T 5612 FA Depreciation Book)

  • Fixed Asset General Journal Line (Fixed Asset Journal Line), General Journal Line (Gen. Journal Line)

    • the Posting Group field. the content changes according to the Account Type

  • Payment Reconciliation Journal – Line

    • the Posting Group field. the content changes according to the Account Type

  • Cash Document Line

    • the Posting Group field. the content changes according to the Account Type

Employee Posting Group

  • General Journal Line (Gen. Journal Line)

    • the Posting Group field. the content changes according to the Account Type

  • Cash Document Line

    • the Posting Group field. the content changes according to the Account Type

Posting Groups in the Financing Area


Setting Up Posting Groups in a Financing Contract

Financing Contract Templates

The Financing Contract Template sets up the default posting groups needed for calculating and posting the payment (e.g. principal, interest), calculation inputs and accruals of the payment.   

Financing Contracts

When a Financing Contract is established, the posting groups are added to the contract as follows:

  • after filling in the Template No., the posting groups from the Financing Contract Template are transferred to the contract header

  • Subsequently, after entering the Customer No., the Posting Group Priority field is completed according to OneCore Setup:

    • Posting Group Priority = "FromCustomer"

      • from the Customer Card overrides the

        • General Business Posting Group

        • VAT Business Posting Group

        • Customer Posting Group

    • Posting Groups Priority = "From Customer if Empty" (FromCustomerIfEmpty)

      • From the Customer Card, he fills in the field that is currently empty on the contract (each field is evaluated separately): 

        • General Business Posting Group

        • VAT Business Posting Group

        • Customer Posting Group

  • Subsequently, if in OneCore Settings () the VAT Bus. Post. Group from Customer field is set = Yes,

    • Overwrites or completes (if it is already empty) the VAT Business Posting Group from the Customer Card.

Other Posting Groups related to the Customer (Prepayment Customer Posting Group, Customer Posting Group for Individual Invoice, Customer Posting Group for Selling Price IS) (Customer Posting Group Deposit, Ind. Inv. Customer Post. Group, Cust. Post. Group IS) do not change with the validation of the Customer No., i.e. they remain on the Posting Group copied from the Financing Contract Template.

From the Financing Contract, the posting groups are filled into the lines of the payment calendars.

The use of posting groups for invoicing is described in Fakturace prodej

Setting Up Posting Groups on Insurance Contract

The Financing Contract can be accompanied by insurance based on the Insurance Contract, which can be included in the contract payment calendar or it can be invoiced separately from the payment on the basis of the Insurance Calendar out of Payment.

Insurance Framework Contracts

In both cases, the default posting groups for each insurance contract are set in the Insurance Framework Contract in the Ins. Frame Agreement Post. Group subtable.

Here, according to the Financing Type and Financing Product Type, the following insurance-related posting groups are set:

  • General Product Posting Group

  • VAT Product Posting Group

Insurance Contracts

  • After creating an Insurance Contract for a Financing Contract, the posting groups are populated.

  • From the Financing Contract header of the customer-related posting group:

    • General Business Posting Group

    • VAT Business Posting Group

  • From the Ins. Frame Agreement Post. Group Posting Group related to the insurance product

    • General Product Posting Group

    • VAT Product Posting Group

Insurance Client Payment Calendar

From the Insurance Contract, the posting groups are transferred to the Insurance Client Payment Calendar.

Setting Up Posting Groups in Contract Services

A Financing Contract of type Operative Leasing or Fleet Management, if it has the Financing with Services = Yes field, can have Contract Services defined that enter the payment calendar.

Service Types

The default posting groups for each service contract are set to Service Types. These are the posting groups:

  • General Product Posting Group

  • VAT Product Posting Group

Contract Services

  • After the Contract Services are created to the Financing Contract, the posting group is filled.

  • From the Financing Contract header of the customer-related posting group:

    • General Business Posting Group

    • VAT Business Posting Group

  • From the Service Types of the posting group related to the service

    • General Product Posting Group

    • VAT Product Posting Group

Service Payment Line

From the Contract Services, the posting groups are transferred to the Service Payment Line (= payment calendars of individual services)