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81 - Posting Groups in Dynamics NAV 2017 - Part 4


81 - Posting Groups in Dynamics NAV 2017 - Part 4       

We are going to keep going over posting groups and I’m actually spending considerable time on the balance sheet posting groups because they sort of give you the feeling what postings groups are about, it will get much more complicated when we get into the posting setup but with the balance sheet posting group o entity posting group (customer, vendor, inventory, and bank) they are posting directly on the balance sheet and its pretty simple how they delineate the posting.

So what I was gonna go into is; one cool thing you can do, just to show you, and then I’m going to talk about something called direct posting on the account; So the cool thing that I have, I’m actually logged in here into the account manager, is that if you go into journals and go into default badge at a journal.

In the account type if I don't put a document number here, a document type in, I actually just have the blank and in the account type if I say, customer, let's say we have the same customer and vendor. The same company we actually buy from that company, but we also sell to them so we have like a purchase and sale relationship, now in that sense, we would have to create a customer and a vendor for that company, so how can you actually move balances between the customer and the vendor?

Let's say that they say: you sold us something and you buy something for us, let's just wipe out those transactions, move the amount from one to another. Moving an amount from customer to a vendor becomes extremely simple in NAV. I can just put into the journal, pick the customer and on the other side lets say its 5,000 and let's say I don't have the kind of group as a vendor in my demos but I'm just going to pick a vendor.

Note:
NAV does not allow you to set this up as a balancing account, but that's ok we can skip that if you know anything about the journals or you worked with journals before we don't have to specify the balancing account. We can specify the other account on the next line, So the next line the document number stays the same, put in vendor I pick the vendor postmaster.

So the kind of group happens to be known as the London postmaster what we are actually buying from them and here I put -5000 to even it out so you see now my document number is clean, it balances out, it's all being posted on G12 here, and I’m posting a customer and a vendor.

With the posting groups, they make this actually flow nicely so we post to the accounts receivable account and we post to the accounts payable account through these entities, so if I post here and hit ok.

Now I have actually moved the balance even though the system did not allow me to put it as a balancing account, put it on the second line and that's really a cool feature. It's really nice to be able just to move balances between one entity and another.Alright, that was kind of the first part of this video.

The second part, I’m going to talk about something called Direct posting and that is super important when it comes to balancing sheet postings. Though posting groups.

Direct posting
If I go into my chart of accounts and I’m going to take a look at my customer domestic receivable account, this is the AR account, so we have tied the customer domestic posting group for customer posting group to this account and so whenever we pick a customer that has that posting group it will post to this account, and if I take a look at this account by hitting edit, I can see something here, and this is actually in the demo company, and this is not right.

It comes from NAV from Microsoft setup like this, I mean, it could be right for some reason or another some weird reason, for me personally I don't think is the right setup.

This here direct posting is checked off, that means that you can post directly to this account without going through a customer or through a posting group and the problem with that is that if you actually run eight
accounts receivable and you've posted directly to this account, it will not match, you don't want anybody to post directly to this account through GL. So if I take this off and it should be off, you should always pick that off for any balance sheet account that is going to a posting group.

If I now go into my journal and I go into default journal as well and get in here and now I’m going to post let's say straight to this accounts receivable. We are going to go into Customer domestic and look. System says no can't post directly to that, because I've taken off the direct posting. So this is good because I will actually have to post through this by actually using something called customer. If I pick customer I’ll do that king group again.

Then it will post to that account, through the customer account which is good. And why is this good? because if I post through a customer and always use customer here instead of going straight to the account, I will actually navigate to this customer, I will generate an entry in the customer card ledger entries, or customer ledger entries.

I will generate an entry here, this is the transaction history for the customer and that is what is being displayed on the aged accounts receivable report, It goes through all of this, so If I actually bypass that by going straight to the GL there will not be any entry here, but there will be an entry on the GL account which means that the Gl account will not balance with the a accounts receivable, so the customer balances will be out of sync with the GL account. So I hope I Made that clear.

So the direct posting always take off any balance sheet account that is getting posted through posting groups and needs to be balanced out by like ads account payable or ads account receivable or anything like that or even inventory valuation, things like that. Inventory gets a little tricky though once we get into that, but inventory valuation should definitely balance out with the inventory accounts,

Hopefully, you learned something from this video, I know it was a lot of talk about some very important concepts.     

 

 

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