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The General Posting Setup determines posting of Revenue and Costs in the Income Statement

The Posting Setup
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Presenter: Sune Lohse, Chief Strategy Officer

How does the general posting setup determine posting of revenue and costs in the income statement in Business Central?

In this video, I will explain the general posting set up in Business Central, which for some, is rather complex posting set up because it’s a matrix, a combination of general business posting group and general product posting group.

This is what happens in the video

Let’s see how that works, from a conceptual level.

If we create a drawing of all the posting setup, in Business Central, it will look like this.

I have my posting groups journal, posting setup and my chart of accounts.

Let’s see how the general postings setup are affected.

These are defined in each separate table and applies to the things I’m going to sell or buy and who I’m going to sell to or buy from.

My general business posting group, applies to customers and vendors and my general product posting group applies to charge items, resources and items and also to G/L accounts, if I’m selling or buying, directly on a G/L account.

This means, when I create a new document they will be transferred, to that specific document, like a purchase order or a sales order, invoices etc.

But I could also apply it directly to journals, I.e., when I’m posting, a document will actually create a journal line, that is posted and if I create the journals manually, I could change the general business posting group and general product posting group, if it’s a manual journal.

When I do the posting, my general posting setup, is a matrix that determines where everything goes, into my revenue accounts, my cost accounts and my prepayment accounts.

That means, that the general posting setup is a combination and a matrix in the data, I like to use.

We have a general business posting group, called domestic, EU export and intercompany, meaning who am I going to sell to or buy from.

And we have a general product posting setup that shows, what I’m going to sell or buy.

This way, we can find the combination, so when I’m selling to a domestic customer in the product group item, there will be defined accounts, where to post in the chart of accounts, but if I’m selling to a EU customer in the product group services, it would be other accounts.

This way, I can setup, on my vendors and customers, and all the stuff I’m going to sell or buy, which accounts in my chart of accounts to affect by the posting.

In another video, we will run through the different columns in the general posting setup, to specifically see, what they do.