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Posting groups on the customer card in Business Central control how transactions are posted to your general ledger. You assign three posting groups on the Invoicing tab: the general business posting group, the VAT business posting group, and the customer posting group.
The general business posting group works together with the product posting group through the general posting setup to determine the accounts for sales and purchases. The VAT business posting group works with the VAT posting setup to determine where VAT is posted in your balance. The customer posting group defines which receivable account, discount accounts, and service charge account to post to.
When you create documents or work in journals, the posting groups from the customer card carry over automatically, so the system knows how to post the transaction when you finalise it.
Where you find posting groups on the customer card
In Business Central, posting groups are added directly to the customer card. You find them on the Invoicing tab, where you assign three different posting groups: the general business posting group, the VAT business posting group, and the customer posting group.
These three groups together control how transactions for that customer are handled when you post them.
How the general business posting group works
The general business posting group is combined with the product posting group in the general posting setup. The product posting group comes from whatever you are selling or buying. Together, these two define the accounts that the transaction is posted to.
When you create a new document or work directly in a journal, this information is carried into the document. When you post, it goes through the journal line and the general posting setup applies the correct accounts.
How the VAT business posting group works
The VAT business posting group is used together with the VAT posting setup. This combination determines where the VAT is posted in your balance, so the VAT amounts end up on the right accounts.
How the customer posting group works
The customer posting group defines which receivable account the transaction is posted to. It also defines the discount accounts and the service charge account. This is the posting group on the customer that controls how amounts owed by the customer are tracked in your ledger.
Why posting groups matter when you post documents
The strength of posting groups is that they remove manual account selection from your daily work. Once you set them up on the customer card, the information follows your documents and journals automatically. When you post, the system uses the general posting setup, the VAT posting setup, and the customer posting group to place every amount on the correct account.
Q&A
Where do you set up posting groups for a customer in Business Central?
You set up posting groups on the customer card, on the Invoicing tab. Here you assign the general business posting group, the VAT business posting group, and the customer posting group.
What does the general business posting group do?
It is combined with the product posting group in the general posting setup to determine which accounts a sale or purchase is posted to. The product posting group comes from the item you are selling or buying.
What does the VAT business posting group control?
It works together with the VAT posting setup to determine where VAT is posted in your balance.
What does the customer posting group define?
It defines which receivable account to post to, as well as the discount accounts and the service charge account.
Do posting groups carry over to documents automatically?
Yes. When you create new documents or work directly in journals, the posting group information from the customer card is carried into the documents. When you post, it goes through the journal line and applies the correct accounts.