This is what happens in the video
On the vendor card in Business Central, you set up three posting groups that control where your purchase transactions end up in the general ledger. These are the General Business Posting Group, the VAT Business Posting Group, and the Vendor Posting Group. Together they determine which accounts your costs, VAT, and payables are posted to.
The General Business Posting Group works together with the product posting group in the general posting setup to control your cost and prepayment accounts. The VAT Business Posting Group works with the VAT product posting group in the VAT posting setup to control your VAT accounts. The Vendor Posting Group directly defines your payables account, discount accounts, and service charge account.
You can change these posting groups on documents and journals before you post. They are not locked once they come from the vendor card.
The three posting groups on the vendor card
When you open a vendor card in Business Central, you find the posting groups on the Invoicing tab. There are three of them: the General Business Posting Group, the VAT Business Posting Group, and the Vendor Posting Group. Each vendor has its own combination of these groups, and that is what decides how transactions are posted to the general ledger when you post a purchase.
The values from the vendor card transfer to your documents and journals. That means you can adjust them on a specific document or journal line if you need to handle a particular transaction differently. When you post, the system uses whichever values are on the document or journal at that moment.
How the General Business Posting Group controls cost accounts
The General Business Posting Group is used in the general posting setup. Here it is combined with the product posting group, which comes from what you are buying. The vendor’s general business posting group tells the system whom you are posting from, and the combination of the two determines the cost account and the prepayment accounts.
So this group is about matching what you buy with whom you buy it from, and routing that to the right cost account.
How the VAT Business Posting Group controls VAT accounts
The VAT Business Posting Group on the vendor is used in the VAT posting setup. It works together with the VAT product posting group, and the combination determines which VAT accounts the transaction posts to.
How the Vendor Posting Group controls payables and related accounts
The Vendor Posting Group is used in the vendor posting setup. Unlike the other two, it defines the accounts directly. This is where you set the payables account, the discount accounts, and the service charge account that the vendor’s transactions post to.
Q&A
Which three posting groups are on the vendor card in Business Central?
The vendor card has the General Business Posting Group, the VAT Business Posting Group, and the Vendor Posting Group. You find them on the Invoicing tab of the vendor card.
What does the General Business Posting Group control?
It is used in the general posting setup together with the product posting group. The combination determines the cost account and the prepayment accounts.
What does the VAT Business Posting Group control?
It is used in the VAT posting setup together with the VAT product posting group. The combination determines which VAT accounts the transaction posts to.
What does the Vendor Posting Group control?
It is used in the vendor posting setup, where it directly defines the payables account, the discount accounts, and the service charge account.
Can you change the posting groups before posting?
Yes. The values transfer from the vendor card to documents and journals, and you can change them there before you post if a transaction needs different handling.