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Microsoft Dynamics NAV 2016 Financial Management - Second Edition

You're reading from  Microsoft Dynamics NAV 2016 Financial Management - Second Edition

Product type Book
Published in Jan 2017
Publisher Packt
ISBN-13 9781786469496
Pages 222 pages
Edition 2nd Edition
Languages
Authors (3):
Anju Bala Anju Bala
Profile icon Anju Bala
Cristina Nicolas Lorente Cristina Nicolas Lorente
Profile icon Cristina Nicolas Lorente
Laura Nicolàs Lorente Laura Nicolàs Lorente
Profile icon Laura Nicolàs Lorente
View More author details

Table of Contents (15) Chapters

Microsoft Dynamics NAV 2016 Financial Management - Second Edition
Credits
About the Authors
About the Reviewer
www.PacktPub.com
Customer Feedback
Preface
1. The Sales and Purchase Processes 2. Managing Payments and Banks 3. Accounting Processes 4. Reporting and Business Intelligence 5. Foretelling - Budgeting and Cash Flow Management 6. Financial Management Setup 7. Other Financial Functionalities 8. Fixed Asset Setup and Transactions

Understanding posting groups


Posting groups are the linking bridge between the G/L accounts and the accounts used on all application areas, such as items, customers, vendors, and fixed assets. Posting groups are used to notify the system which accounts to use on each transaction. There are three main types of posting group as follows:

  • Specific posting groups: These are used to link subsidiary ledgers (namely the vendor ledger entries) to the general ledger. They are used to specify balance sheet accounts.

  • General posting groups: Typically, these are used to specify income statement accounts that should be used on transactions. They are used to specify to whom and what we sell or buy.

  • TAX posting groups: You use these to specify the tax rates, calculation types, and accounts.

Specific posting groups

Specific posting groups are mainly used to instruct the system about which balance sheet account to use for each subsidiary ledger. For example, the sum of balances of all customers must be equal...

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