Demystifying “Gen. Posting Type” on G/L account card in Microsoft 365 Business Central

One of the most common question our clients asked is how and why we need to define “Gen. Posting Type” on G/L account card. It is essential for both consultants and clients to understand the set up rules for this field.

First of all, the “General Posting Type” field is attached to any transaction impacting the General Ledger and is primarily used in GST Reporting (i.e. BAS Statement). There are 4 options:

  1. Blank. This is when the transaction is not a GST related transaction, most commonly used on financial journals such as accruals or distribution of costs between divisions.
  2. Purchase. This will impact the GST Paid/Purchases area of the BAS.
  3. Sale. This will impact GST Collected/Sales area of the BAS.
  4. Settlement. Reserved for posting GST Settlements.

To determine the correct value for Gen. Posting Type, decide whether the transaction you are doing should have an impact on your BAS or not. If the answer is no, then the Gen. Posting Type must remain blank. If the answer is yes, you will need a Gen. Posting Type of either Purchase or Sale.

 When setting a G/L account card, the “Gen. Posting Type” field should be filled in only for revenue and expense accounts where GST is involved. If the transaction will impact your BAS (GST Reporting) then this field must be populated with either Purchase or Sale. If not, then it must be blank.

The Posting Groups consists of “Gen. Bus. Posting Group”, “Gen. Prod. Posting Group”, “GST Bus. Posting Group” and “GST Prod. Posting Group” as per the screenshot below.

"Posting Type” field is defined, then we need to define the Posting Groups to correctly calculate the GST and post correct transactions to general and sub-ledger entries. 

If the transactions do not involve any GST, then the “Gen. Posting Type” and Posting Groups must be “blank”.

Note:

For Subledger G/L account cards(e.g. Accounts Payable), they should all be blank.

If the G/L Account it to be posted to through a Journal, and GST should be calculated, you will need to define all the fields under Posting FastTab.

If the posting to the G/L Account is only through Journals, and these journals should have no GST or BAS impact (e.g. an end of month adjustment account) then all fields should be blank.

Hope you enjoy the reading.

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