NAV Specific Posting Groups

I did promise at the beginning of January in my NAV Posting Groups Blog that I would discuss Specific Posting Groups in more detail. Microsoft describes Specific Posting Groups as follows:

The primary purpose of specific posting groups is to identify the primary balance sheet account for each supporting ledger. For instance, the total outstanding accounts receivable balance of all the customers should correspond to the total balance of the Accounts Receivable accounts in the balance sheet. Specific posting groups are assigned to customers, vendors, items, bank accounts, and fixed assets. These posting groups create the direct link to the primary balance sheet account for each master item.

This pretty much sums Specific Posting Groups up.  They are the reference to the Balance Sheet Account you will use to review the total balance posting for a particular set of postings.  E.g. the split for all Receivables Accounts in the Balance Sheet by Country if this is applicable to you.

If you navigate to the setups for Posting Groups you will find the General Posting Groups as well as the Specific Posting Groups.  These are:

  • Customer Posting Groups
  • Vendor Posting Groups
  • Fixed Asset Posting Groups
  • Bank Account Posting Groups
  • Inventory Posting Groups (as well as Inventory Posting Setup – Inventory rules may differ for different locations so there is a secondary setup for Inventory)

NAV Posting Groups

Each of these Posting Groups holds the setups for posting specific transactions to a particular G/L Account in the ledger.  It is important to remember that you need to have a Chart of Accounts set up before you can assign these accounts.  There is often some rewrite of the initial Chart of Accounts once the Financial Managers begin to understand the benefits of splitting some accounts.  Let’s look at the Accounts Receivable setups in the Dynamics NAV CRONUS company.

Cronus Chart of Accounts Receivables

Cronus Chart of Accounts Receivables

Here we can see that the Accounts Receivables Balance Sheet Accounts are split into different Regions.  Although you can use Dimensions to split and analyse this data, there may be some cases where you will want a quick reference to review the total amounts by different high-level geographic regions.  In this case – Domestic, Foreign, Intercompany and Other.

You can set up the Customer Posting Groups to reference the relevant G/L Accounts.  It is important to remember that the Customer Posting Groups do not need the same name as the G/L Accounts.  Keep the Posting Group Code simple and pertinent to the type of Customer.  This is evident in the Customer Posting Groups in the CRONUS company where Customer Posting Groups are shown as Domestic, EU and Foreign.

Customer Posting Groups

All Specific Posting Groups will have their own set of posting transaction accounts so you can specify the account for the relevant type of transaction.  There will be different for the different types of Specific Posting Group.

Specific Posting Groups are not only important in the process of posting to the General Ledger but also in how we analyse our data.  Let’s stay with Customer Posting Groups for a moment and look at the reports that are available in the Customer Reporting in NAV Sales & Marketing menu.

When running Customer specific reports we are able to filter the report by Customer Posting Groups.  This means we can filter by a top level view of the split across our customers, before drilling down to dimension level.

Customer Order Detail Report Filters

This is great news for reporting in the system and you will find that most Third Party Business Intelligence reporting programs will also pick these up allowing even further splicing of data.  Wonderful!, I hear you say, “But where do I specify the Customer Posting Group?”

You will need to specify the Specific Posting Groups on the relevant Card to which the Specific Posting Groups are related.  E.g.  Customer Posting Groups on the Customer Card, FA Posting Groups on the Fixed Asset Card, Inventory Posting Groups on the Item Card, etc.  If you forget to add in the Specific Posting Group when setting up the card, you will receive an error when you try post any transaction against this card.

I always recommend that the golden rule when setting up any Master Data in NAV is that if it ends in the words “Posting Group” it MUST ALWAYS be filled in.

Good luck with setting up your NAV Specific Posting Groups!

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Posted in NAV 2013, NAV Posting Groups, Posting Groups, Specific Posting Groups
3 comments on “NAV Specific Posting Groups
  1. Darren Coxhill says:

    Gems, beautifully written and explained.

    Like

  2. […] previous posts, we have learned about General and Specific Posting Groups but let’s now put all the info together and view the results in the Ledger for […]

    Like

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