Posting groups in Business Central explained
Posting groups are how Business Central knows which G/L accounts to use when you post a document. They connect master data (customers, vendors, items) to the chart of accounts, so users never pick accounts by hand.
The two kinds of posting groups
Specific posting groups point directly to balance-sheet accounts:
| Group | Assigned to | Decides |
|---|---|---|
| Customer posting group | Customer | Receivables account |
| Vendor posting group | Vendor | Payables account |
| Inventory posting group | Item | Inventory account (via Inventory Posting Setup) |
| Bank account posting group | Bank account | Bank G/L account |
General posting groups work in pairs and decide income-statement accounts:
| Group | Assigned to |
|---|---|
| Gen. Bus. Posting Group | Customer, vendor |
| Gen. Prod. Posting Group | Item, resource, G/L account |
The General Posting Setup page combines the two. Each combination holds the sales, purchase, COGS, inventory adjustment and discount accounts.
VAT posting groups
VAT works the same way: VAT Bus. Posting Group (customer or vendor) plus VAT Prod. Posting Group (item or G/L account) gives one line in VAT Posting Setup, with the VAT % and VAT accounts.
Example: posting a sales invoice
- Receivables account: from the customer posting group.
- Sales account: from General Posting Setup (customer’s business group + item’s product group).
- VAT account and rate: from VAT Posting Setup.
- Inventory and COGS: from Inventory Posting Setup and General Posting Setup.
Exam traps
Customer/vendor/inventory groups = balance sheet. General posting setup = income statement (sales, purchases, COGS).
Learn more: Setting up posting groups.
Practice questions
Pick an answer to check it. Questions are original and written for practice.
1. Which setup decides the receivables account when you post a sales invoice?
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Answer: A.The customer posting group holds the receivables account, plus accounts for things like payment discounts and invoice rounding.
2. The sales account for an item sale comes from the General Posting Setup. Which two groups make up the key of that setup?
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Answer: B.General Posting Setup is a matrix of Gen. Bus. Posting Group (from the customer or vendor) and Gen. Prod. Posting Group (from the item, resource or G/L account).
3. Which setup finds the inventory account for an item at a specific location?
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Answer: B.Inventory Posting Setup combines the location code with the inventory posting group to find the inventory account.