My company is in the process of implementing Navision. I am the Accounting Supervisor and am trying to best understand the general posting group concept. The posting group serves basically as the link from a granule to the G/L. It provides a road map to the G/L accounts which should be debited and/or credited depending upon the granule(s) being utilized for the given transaction. Where my confusion lies is while I am setting up the Vendor file. Each vendor requires, a general posting group. What if I have a vendor that provides varying products, (different posting groups) for my company which need different expense classifications, such as operating supplies vs capital equipment? Does this link serve primarily as a default, therefore my payable people can go override the group? Or have I missed understanding the concept of “posting groups” completely? Thanks for your help[?]
If you are asking this question, it would seem that you are not having your NSC assist in your implementation. That is not the best choice. But to answer your question: The vendor posting group is used to define how the vendor side of the transaction is posted. i.e. the a/p account, where discounts go, etc. How the individual lines are posted is based upon the posting groups set up for the item/asset or G/L account defined. You may want to look at the Cronus example company, to see how the posting groups are managed there. You can look at the the matrix that is created for that also relates a general business group to a general product group to see how the individual lines will be posted during different transactions.
Send me your email address and I’ll send you my Training Document. I worked for an NSC for 3-1/2 years and I am now working for a world-wide manufacturer and have just completed installing navision. email = schinsky@bostonretail.com
Hi Cindy, one thing that may help you. Think of the Primary posting groups (Vendor, Item and Customer Posting Groups) as the BALANCE SHEET setup, and… think og the General posting setup (Gen. Prod and Gen. Bus posting groups) as the PROFIT LOSS setup. This is not always correct, but conceptually it will make it easier to understand the differences between what the different groups do. As John mentioned, your NSC should have been working with you on this, you really should talk with them.
At one of our implementations we had a question posed by the Users’. The scenario was something like this: They pay advance to the vendors. In the G/L they maintain Advance to Vendors’ A/c. The advances paid to vendors should hit the Advance to Vendors’ A/c in G/L. When the vendor submits his bill, the Creditors control account in G/L should hit. Finally, when the vendor is paid the balance amount, the Creditors’ control account (again in G/L) should hit. If you define Creditors Control account in the Payables’ account in the Vendor Posting Group. All entries (including the advance paid to vendors) to the vendors would hit the Creditors control account. The question then arose, as to how would you a) hit the Advance to Vendors account when the advance is paid to the Vendor and b) hit the Creditors Control account when the bill is entered and finally settled. Any suggestions on the above??