Posting groups are the mechanism Business Central uses to map transactions to G/L accounts. When you post a sales invoice, Business Central looks at the posting group on the customer to determine which receivables account to use. For purchase invoices, it reads the vendor’s posting group to find the payables account.
There are three main categories: General Posting Groups, Customer Posting Groups, and Vendor Posting Groups. Inventory Posting Groups serve a similar purpose for item transactions. Each type works independently, and all must be configured before posting can succeed.
How Posting Groups Work Together
A posted transaction typically involves two layers of posting groups:
- Specific posting groups (Customer, Vendor, Inventory), determine balance sheet accounts like receivables, payables, and inventory.
- General posting groups (General Business + General Product), determine income statement accounts like sales revenue and cost of goods sold. These are configured in the General Posting Setup matrix, covered in a separate guide.
Both layers must be set up correctly for a transaction to post without errors.
Set Up Customer Posting Groups
Customer Posting Groups define the G/L accounts used when posting customer transactions, primarily the receivables account, but also discount and rounding accounts.
- Search for Customer Posting Groups using
Alt + Q. - Select New.
- Fill in the required fields:
| Field | Description |
|---|---|
| Code | A short identifier, e.g. DOMESTIC or EU |
| Receivables Account | The G/L account for open customer balances |
| Service Charge Acc. | Account for finance charges posted to customers |
| Payment Disc. Debit Acc. | Account for payment discounts given |
| Payment Disc. Credit Acc. | Account for payment discounts received (credit memos) |
| Interest Account | Account for reminder interest (if used) |
| Additional Fee Account | Account for reminder fees |
| Debit Rounding Account | Rounding difference account (debit side) |
| Credit Rounding Account | Rounding difference account (credit side) |
At a minimum, the Receivables Account must be filled in. The other fields are required only if the related features, payment discounts, reminders, finance charges, are in use.
Set Up Vendor Posting Groups
Vendor Posting Groups follow the same logic as customer groups, but for the accounts payable side.
- Search for Vendor Posting Groups using
Alt + Q. - Select New.
- Fill in the fields:
| Field | Description |
|---|---|
| Code | E.g. DOMESTIC, FOREIGN |
| Payables Account | The G/L account for open vendor balances |
| Payment Disc. Debit Acc. | Payment discounts taken |
| Payment Disc. Credit Acc. | Payment discounts credited |
| Debit Rounding Account | Rounding differences (debit) |
| Credit Rounding Account | Rounding differences (credit) |
Set Up Inventory Posting Groups
Inventory Posting Groups link items to inventory G/L accounts. They work together with Inventory Posting Setup, which maps posting groups to locations and G/L accounts.
- Search for Inventory Posting Groups using
Alt + Q. - Select New.
- Enter a Code (e.g.
FINISHED,RAW-MAT) and a Description.
After creating the groups, configure the corresponding accounts in Inventory Posting Setup.
Example: Posting Group Structure
| Type | Code | Key Account |
|---|---|---|
| Customer Posting Group | DOMESTIC | Receivables: 13100 |
| Customer Posting Group | EU | Receivables: 13200 |
| Vendor Posting Group | DOMESTIC | Payables: 22100 |
| Vendor Posting Group | FOREIGN | Payables: 22200 |
| Inventory Posting Group | FINISHED | Inventory: 14100 |
Assign Posting Groups to Customers and Vendors
- Open the Customer Card for the relevant customer.
- On the Invoicing tab, locate the Customer Posting Group field.
- Select the appropriate posting group from the list.
Repeat the same steps on the Vendor Card using the Vendor Posting Group field.
Posting groups can be changed on a customer or vendor at any time, but the change only affects future transactions. Previously posted entries remain linked to the posting group that was active when they were posted.
For the income statement side of posting, how sales revenue and cost accounts are determined, see How to Configure General Posting Setup in Business Central.