85 - Posting Groups in Dynamics NAV 2017 - Part 7
We are going to keep going in the deep dive in the posting groups we are now getting into the general posting setup, if you watched the previous video, you are kind of familiar to what we are talking about if you haven’t please go ahead and check that out. So the last one before this one.
General Posting Set up
Basically what we are doing is getting into how the system posts into the balance sheet and the income statement as well. So we started with the balance sheet posting, the entity posting group and all of those things, but right now we want to include how it goes into costing and revenue etc.
NAV actually uses something called general posting setup for that where two things play a factor, the general business posting group which is connected to the customers and the vendors, and the general product posting group which is connected to whatever we are buying or selling which is usually items I can be resources we can actually sell resources etc.
In this video I’m actually going to go into posting one transaction and show how it all hits and there are some nuances which are a little bit surprising to some maybe, but there is a really good reason for that, if you follow this and understand this, you'll be a total star inside the NAV community and actually in ERP. if you understand completely how postings go through, so this is a good one.
I‘m gonna go here into items and I have created an Item called thanksgiving coffee mug, we are in the month in November we love holidays over here in iNECTA so of course, we are gonna go into thanksgiving stuff, Halloween just finished so no more spooky things.
This mug here is just a very simple item setup, it’s a FIFO costing method, we set it up to post into the general product posting group of retail, and the inventory posting group is resale, so these are going to be the drivers of where it's hitting in the chart of accounts.
Also we are gonna use American I think woodworks Vendor to purchase this item, so If I go into a purchase order and just create a new one, lets get in here hit new, and i’m gonna pick American wood exports, interesting enough we are buying coffee mug from a wood exporter, these are of course the wooden coffee mugs, similar to the Halloween so no surprise there, I have to put in the invoice number, because without the invoice number it doesn’t post and it will complain.
If I go into type here, put in thanksgiving coffee mug and I’m sure you’ve put in already a few purchase orders so you know how this works, we are getting at 20 because this is just a sample and so it's gonna be 300 dollars that are gonna be posted. I’m gonna hit here show more fields and I want this to get posted actually on 11 01 2018, so the reason for that is because I have no other postings on this day in my system and I want to filter on this day to see the transactions, so that’s gonna be important in kind of researching how this hit.
I’m gonna go ahead an post this and receive an Invoice. So now my post went all the way through and I should have some results so now I’m gonna go into chart of accounts and here I’m gonna do some filtering and I think I went over this in one of my videos but here you can actually filter the net change to show only the transactions for one particular day, so If I go in here and add filter, I go into date filter put in the 11/01/2018 and you can see that now everything cleared out, you can see here 300 so that’s the transaction I just did. I also want to filter on the net change and only show nonzero.
So now I’m seeing only that transaction and the account that got hit. Finally, I’m gonna filter on the posting only posting accounts. And now I’m looking at all the accounts that got hit, now remember on the previous video we had talked about the system actually hit in inventory, purchasing, direct cost applied and such, so I’m actually gonna map that out.
First let me go into general posting setup just review, so here I am working with the American wood exports happened to be a domestic vendor so they have domestic in general business posting group, it was retail item so my thanksgiving had a retail posting group in the general product posting group right here, so these are the accounts that get hit, 44100, 54100, 54700, and 54710 ok, Let’s take a look here a little bit. I’m not selling, I was just buying so this should not hit sales, but purchase accounts should get hit, 54100 and you can see that it’s getting here. And that is actually being hit for debit.
And then we have cost a good sold, I’m not selling anything , that’s not getting hit but direct cost applied account hit 54710, that’s right here, and then we are hitting balancing accounts which is 14100 and 22300 no let me go ahead an actually map out how this is posting.
I created T accounts, yes we are going to T accounts so do not be scared, I’m gonna just move this a little bit here. So we are going to map out the transactions that hit. We are buying something, what does that mean? that means that we are going to create an account payable we owe a vendor something, did it hit accounts payable? yes. So it hit vendors domestic.
That was a credit - NAV’s credit so that's worth 300, what else happened? well they receive the product, the product came into the warehouse so the inventory valuation goes up, so it must increase our inventory count which is right here. It’s actually debit inventory which means we increase the assets, now why is it hitting these two accounts here? purchase retail and direct cots? that is actually the interesting part.
So accounts payable is not what offsets inventory in these transactions, what offsets accounts payable is something called purchase, so it actually hits debit on purchase and what offsets inventory in NAV again is not accounts payable, it’s direct cost applied and like it’s good like that, so this is a little bit of a nuance, you might wonder why?, why are we hitting these two accounts here, why can’t we just hit accounts payable inventory, and that is something that I’m gonna move into explaining in the next video or next video and so. But at least now you can see how the general posting is directing the transactions into the GL and it's hitting these four accounts. Basically getting the information into the chart of accounts.
So stay tuned for more on posting groups, it's gonna get more interesting as the story continues.