Specific Posting Group

There are 5 specific posting groups in Navision:
1) Customer Posting Groups
2) Vendor Posting Groups
3) Fixed Asset Posting Groups
4) Bank Account Posting Groups
5) Inventory Posting Groups

The purpose of specific posting group is to link customer, vendor, fixecd asset, bank account and inventory to the respective balance sheet account.

Why we need Customer Posting Group ?

Sales figure for each customer need to be posted an account in the general ledger. If we create one general ledger account for each customer, the chart of account will be cluttered with too many customer accounts. Therefore, it is not practical to create one general ledger account for each customer. To make the chart of account cleaner and more organized, accountants usually groups several customers into one posting group and then specify an account for the posting group. All sales transactions for customers under the same posting group will be posted to the same customer account.

Navision can cater this scenario with Customer Posting Group. You can setup many Customer Posting Groups in Navision. By default, Cronus comes with 2 Customer Posting Group:

1. Domestic
2. Foreign

To setup the Customer Posting Group, go to Financial Management --> Setup --> Posting Groups --> Customer

To group the customer under a Customer Posting Group, open the Customer Card and then select the Invoicing Tab. Select a Customer Posting Group to group the customer.




OK. From this point onwards, whenever you post sales orders, invoices and credit memos, involvoing the customer, Navision will post the financial value to the respective general ledger accounts based on the setup done in the Customer Posting Group setup.

Please note that one customer can only has one customer posting group.

Posting to G/L Account

Post Purchase Receipt
+ Inventor Account (Interim)
- Invt. Accrual Acc. (Interim)


Post Purchase Invoice
- Inventory Account (Interim)
+ Invt. Accrual Acc. (Interim)

+ Inventory Account
- Direct Cost Applied Account

+ Purch. Account
- Payable Account


Post Purchase Receipt + Invoice
+ Inventory Account
- Direct Cost Applied Account

+ Purch. Account
- Payable Account


Post Purchase Return Order
- Inventory Account (Interim)
+ Invt. Accrual Acc. (Interim)


Post Credit Memo
- Inventory Account
+ Direct Cost Applied Account

+ Inventory Account (Interim)
- Invt. Accrual Acc. (Interim)

- Purch. Credit Memo Account
+ Payable Account


Post Return Order + Credit Memo
- Inventory Account
+ Direct Cost Applied Account

- Purch. Credit Memo Account
+ Payable Account


Post Sales Shipment
- Inventory Account (Interim)
+ COGS Account (Interim)


Post Sales Invoice
- Inventory Account
+ COGS Account

+ Inventory Account (Interim)
- COGS Account (Interim)

+ Receivables Account
- Sales Account
- Sales Line Disc. Account
- Sales SST Account


Post Sales Shipment + Invoice
- Inventory Account
+ COGS Account

+ Receivables Account
- Sales Account
- Sales Line Disc Account
- Sales SST Account


Post Sales Return Order
+ Inventory Account (Interim)
- COGS Account (Interim)


Post Sales Credit Memo
+ Inventory Account
- COGS Account

- Inventory Account (Interim)
+ COGS Account (Interim)

- Receivables Account
+ Sales Credit Memo Account
+ Sales Line Disc. Account
+ Sales SST Account


Post Sales Return Order and Credit Memo
+ Inventory Account
- COGS Account

- Receivable Account
+ Sales Credit Memo Account
+ Sales Line Discount Amount Account
+ Sales SST Account


Post Positive Adjustment
+ Inventory Account
- Invt. Adjmt. Account


Post Negative Adjustment
- Inventory Account
+ Inventory Adjmt. Account


Post Purchase Journal
+ Inventory Account
- Direct Cost Applied Account


Post Sales Journal
- Inventory Account
+ COGS Account

Auto Populate VAT Prod. Posting Group from Gen. Prod. Posting Group

If you have already set the default VAT Posting Group at the Gen. Product Posting Group Setup, the VAT Posting Group in Item Card will be automatically populated when you select the Gen. Prod. Posting Group.

General Posting Setup

1) FINANCIAL MANAGEMENT -> SETUP -> POSTING GROUPS -> GENERAL -> POSTING SETUP

2) Matrix of General Business Posting Group and General Product Posting Group

Product Posting Group

1) Assign to items and resources

2) FINANCIAL MANAGEMENT -> SETUP -> POSTING GROUPS -> GENERAL -> PRODUCT

3) breakdown sales by items and purchases by items

General Business Posting Group

1) Assign to Customers and Vendors.

2) Use to break down sales by customers and purchases by vendoers.
a) geographical area - domestic, export
b) type of business - retail, industrial, service, wholesale
c) private / government

2) FINANCIAL MANAGEMENT -> SETUP -> POSTING GROUPS -> GENERAL -> BUSINESS

3) Fields in General Business Posting Groups
a) Code
b) Description
c) Def. VAT Bus. Posting Group
--> Default VAT Bus. Posting Group for transaction involving this General Bus. Posting Groups
--> Auto updated to Vendor / Customer card if Auto Insert Default is set to true.
d) Auto Insert Default

General Posting Groups

There are 2 types of General Posting Groups:

1) General Business Posting Group
a) Who we sell to - CUSTOMERS
b) Who we buy from - VENDORS

2) General Product Posting Group
a) What we sell - ITEMS and RESOURCES
b) What we buy - ITEMS

Vendor Posting Group

1) FINANCIAL MANAGEMENT --> SETUP --> POSTING GROUPS --> VENDOR

2) Fields in Vendor Posting Group
a) Payable Account
--> Payables due to vendors.

b) Service Chage Acc.
--> Service charges due to vendors.

c) Payment Disc. Debit Acc.
--> Reductions in payment discounts received from vendors.

d) Payment Disc. Credit Acc.
--> Payment discounts received from vendors.

e) Debit Curr. Appln. Rndg. Acc.
--> Rounding differences that occurs when applying entries in different currencies.

f) Credit Curr. Appln. Rndg. Acc.
--> Rounding differences that occurs when applying entries in different currencies.

g) Debit Rounding Account
--> Rounding diffrences from remaining amount.
--> Remaining Amount is the amount remains to be applied and is shown in the original currency.

h) Payment Tolerance Debit acc.
--> Purchase tolerance
--> Must use together with Business Posting Group

i) Payment Tolereance Credit Acc.
--> Purchase tolerance
--> Must use together with Business Posting Group

j) Interest Account
--> Interest transaction



To Assign the Vendor Posting Group to Vendor:
1) Open the Vendor Card (FINANCIAL MANAGEMENT --> PAYABLES --> VENDORS)and browse to the vendor on which you want to assign the Vendor Posting Group.
2) Click on Invoicing tab.
3) Select a Vendor Posting Group.

Customer Posting Group

1) Financial Management --> Setup --> Posting Groups --> Customer

2) Code field have a maximum of 10 characters.

3) You can create as many code that you like but the code must be unique.

4) You can specify the accounts to which Navision will post to when posting transaction invoiving customer. Accounts that can be specified include:
a) Receivable Acccount

b) Service Charge Acccount

c) Payment Disc Debit Account
--> payment discount granted to customers
--> can only be used if Adjust for Payment Disc. field in G/L Setup table is not activated.

e) Payment Disc Credit Acc
- reduction of discout granted to customers

f) Interest Acc
--> post interest from reminders and finance charge memos for customers
--> reminder is the document used to remind customer of outstanding balance
--> finance charge memo is the document that contains information about interest + outstanding balance.

g) Additional Fee Account
- post additional fee on reminders and finance charge memos

h) Invoice Rounding Acc
--> speficies which account Navision will post amount that resulting from invoice rounding
--> can only be used if you check the Invoice Rounding Field in the Sales & Receivable Setup
--> additional invoice lines will be created for the rounded amount.

i) Debit Curr. Appl. Rndgn. Acc.
--> post rounding differences that occur when you do apply entries in different currencies

j) Credit Curr. Appl. Rndgn. Acc.
- same as (h)

k) Debit Rounding Acc.
--> points to account that Navision will post the rounding differences from remaining amount (Cust. Ledger entry Table)
--> remaining amount is the amount that remains to be applied to before entry has been completely applied.

l) Credit Rounding Acc.

m) Payment Tolerance Debit Acc

n) Payment Tolerance Credit acc

5) After the Customer Posting Group has been setup, you can assign it to Customer Card
--> Go to Invoicing Tab
--> Select the Customer Posting Group

After you setup the Customer Posting Group, whenever you post sales order, invoices, credit memos, payments, etc related to the customer, Navision will post to the specified accounts based on the Customer Posting Group setting in the Customer Card and Customer Posting Group Setup.

Posting Group Overview

The purpose of posting group is to create links between different application areas with G/L Accounts. Therefore, you must setup COA before you setup any posting group.

There are 3 types of posting group in Navision:

1. Specific Posting Groups - Customer Posting Group, Vendor, Item, Bank Account, Fixed Asset
2. General Posting Groups - General Business Posting Group, General Product Posting Group
3. VAT Posting Groups -

Inventory Posting Setup

Setup at Inventory Posting Setup will affect which account the system will post to when you do Warehouse Receipt, post orders, invoices, credit memos, etc, involving item.

1) Go to Financial Management --> Setup --> General --> Inventory
2) Add Inventory Posting Group in this screen
3) Select the Inventory Posting Group and then click on the Setup button to bring up the Inventory Posting Setup screen. Here, you can specify account on which you want to post to based on the Location Code and Inventory Posting Group.
4) The 2 important accounts here are:
a) Inventory Account Interim
--> Expected Item Cost.
--> Items received but not yet. invoiced.

b) Inventory Account
--> Actual Item Cost.
--> Item received and invoiced.

* My company only use the above 2 accounts

Other fields in the Setup includes:
c) WIP Account
--> WIP inventory
--> Used in Production

d) Material Variance Account

e) Capacity Variance Account

f) Subcontracted Variance Account

g) Cap. Overhead Variance Account

h) Mfg. Overhead Variance Account

When you do Warehouse Receipt, the received value will be debited into the Inventory Account Interim account. At the same time, it will credit an Inventory Accrual Account (Interim). The Inventory Accrual Account need to be set at General Posting Setup (Financial Management --> Setup --> Posting Groups --> General --> Posting Setup).

When you received an Invoice from the vendor and post Invoice,
1) Amount from the Inventory Account Interim will be credited and debited into Inventory Account.
2) Inventory Accrual Account will be debited and the same amount to be credited to a Purchase Account. The Purchase Account need to be setup at the General Posting Group.