What Are Posting Groups?
Posting Groups act as the mapping layer between transactions and G/L accounts. Instead of assigning an account manually for every sales invoice, purchase order, or item, Posting Groups define the rules so the system can do it automatically.
This ensures:
-
Consistency in financial postings
-
Faster transaction entry
-
Reduced risk of human error
🔹 Types of Posting Groups
There are two major categories in Business Central:
1. General Posting Groups
These define how revenue and costs are recognized based on who you transact with (customer/vendor) and what you transact (products/services).
| Posting Group | Purpose | Examples |
|---|---|---|
| General Business Posting Group | Defines who you are trading with (customers/vendors) | DOMESTIC, EU, EXPORT |
| General Product Posting Group | Defines what you are trading (goods/services) | RETAIL, RAWMAT, SERVICE |
| General Posting Setup | Combines Business + Product group to determine G/L accounts | DOMESTIC + RETAIL → Sales Revenue Account |
2. Specific Posting Groups
These are more direct and determine the exact G/L accounts for key master data, such as customers, vendors, inventory, and banks.
| Posting Group | Purpose | Example Accounts |
|---|---|---|
| Customer Posting Group | Defines the Receivables account for a customer | Trade Debtors (Accounts Receivable) |
| Vendor Posting Group | Defines the Payables account for a vendor | Trade Creditors (Accounts Payable) |
| Inventory Posting Group | Maps items to inventory accounts | Finished Goods, Raw Materials |
| Bank Account Posting Group | Links bank accounts to G/L accounts | Bank of America → G/L 10100 |
| Fixed Asset Posting Group | Handles acquisition, depreciation, and disposal accounts | Office Equipment, Vehicles |
🔹 How Posting Groups Work Together
When you post a transaction, Business Central looks at both specific and general posting groups:
-
Master data (Customer, Vendor, Item, Bank, etc.) → determines the specific posting group.
-
Transaction type (Sale, Purchase, etc.) → determines the general posting group.
-
Posting Setup → combines them and assigns the correct G/L account.
👉 Example:
-
Customer “ABC Retail” has Customer Posting Group = DOMESTIC
-
Item “Laptop” has General Product Posting Group = RETAIL
-
General Posting Setup maps DOMESTIC + RETAIL → Sales Revenue 40100
-
Result: When you post the sales invoice, the system automatically credits 40100 Sales Revenue.
🔹 Best Practices for Setting Up Posting Groups
-
✅ Keep your structure simple – don’t create unnecessary groups.
-
✅ Plan with your Chart of Accounts – align posting groups with your reporting needs.
-
✅ Use naming conventions – e.g., CUST_DOMESTIC, VEND_EXPORT for clarity.
-
✅ Test combinations in a sandbox – to avoid mismatches between business/product groups.
-
✅ Document your setup – so finance and IT teams are aligned.
🔹 Conclusion
Posting Groups in Business Central provide the framework for accurate and automated accounting. By carefully planning and setting them up, businesses can ensure that transactions flow seamlessly into the right G/L accounts, supporting reliable financial reporting and analysis.