Overview
The General Ledger stores financial data and the setup of this within Business Central is essential as it defines how data is posted.
Transactions in the system are posted to a General Ledger account, using the posting setups to determine how the entities are mapped. Based on the setup, the value of the transaction will then go to the account specified. Business Central allows you to post to multiple accounts depending on this setup.
How Posting Setup Works in Dynamics 365 Business Central
General Posting Groups
- General business posting groups: assigned to customers and vendors to identify who you sell to and buy from.
- General product posting groups: assigned to items and resources to identify what you sell and buy.
- General posting setups: this combines the General Business Posting Groups and the General Product Posting Groups, allowing you to select the accounts to post to. For each combination of the above, a selection of General Ledger accounts can be chosen.
Specific Posting Groups
- Customer posting groups: Identifies which accounts to post to for receivable transactions.
- Vendor posting groups: Identifies where to post transactions for payables accounts, service charge accounts, and payment discount accounts.
- Inventory posting groups: assigned to items and relevant item accounts.
- Bank account posting groups: Defines the general ledger accounts that bank account entries are posted to.
- Fixed asset posting groups: Defines accounts for different types of expenses and costs, such as acquisition costs, accumulated depreciation amounts, acquisition costs on disposal.
Tax
- Tax business posting groups: Identifies how to calculate and post sales tax for customers and vendors.
- Tax product posting groups: This suggests the tax calculations needed for the items, resources etc. sold and bought.
- Tax posting setup: this combines the Tax Business Posting Groups and the Tax Product Posting Groups, allowing you to specify the accounts to use.
Addition Information & Useful Links
For additional information from Microsoft about General Ledger Posting, please see the following links:
Understanding the General Ledger and COA – Business Central | Microsoft Learn