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Walkthrough of fields in the Vendor Posting Groups

The Posting Setup
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Presenter: Dennis Schumacher [Machine Voice-over]

How to work with the fields in the vendor posting groups inside Business Central?

Let me explain how different accounts in Vendor Posting Setup work in your Chart of Accounts.

This is what happens in the video

In this case, we have two different codes that define how the different ones are to behave.

We have Payables Account, which is your summary account where all your transactions on the vendor will be collected on your balance sheet.

You can make this different, depending how you want your posting to behave.

The next field is Service Charge Account.

This is somewhere you can put all your service charges that might come from your vendors in connection with posting.

The next field is the payment discount account for all your debit posts, i.e.

if you pay your vendor ahead of time and therefore get a cash discount, a debit entry will end up here.

The next field is the same as the last one, except that it’s now all the credit entries that will end up in this account.

The next field is Invoice Rounding Account, which means that when an invoice from your vendor has to be rounded, then this account will be used.

The next field is Debit Currency Application Rounding Account, which as the name implies is where, when different currencies that have been applied to each other cause a rounding to be carried out, this account will come into play.

The next field is the same as the last one but on the credit side.

So there, it’s this account that comes into play.

The next field, Debit Rounding Account, is a field you can use when you settle your outstanding balance in the same currency, but there’s a little rounding of pennies.

The system will therefore automatically use this account to generate your posts on.

This is only for debit posts.

The next field is the same, except that this is in credit.

The last two fields are Payment Tolerance Debit and Credit Account.

These are to do with the tolerance you want to have when you are paying your vendors.

Perhaps you have an outstanding balance of 105 kroner.

But you’ve paid 104 kroner by mistake, and so it’s OK that there’s a tolerance, and for this it uses the last krone to settle to these accounts, because there is a tolerance of that one krone.

It’s worth mentioning, that all these accounts aren’t ones you use directly, but they’re something the system generates automatically.