Inventory Posting Group and Inventory Posting Setup in Microsoft Dynamics 365 Business Central

Introduction:

In this blog we will be discussing about Inventory Posting Group and Inventory Posting Setup.
Also we will see an example of how things work when it comes to using Inventory Posting Group and Inventory Posting Setup.

Prerequisites:

Microsoft Dynamics NAV / Business Central 

Definitions / Theory:

Inventory Posting Group is used to specify the type of Inventory or group the item.

Inventory Posting Setup is used to combine Inventory Posting group with location codes. Each combination is then mapped to the Inventory G/L Accounts, WIP  G/L Account, and other variance of accounts relating to inventory in the Chart of  Accounts.

Demonstration:

Steps: Setting up Inventory Posting Group

1. In search option, enter Inventory Posting Group and then choose related link.

Global Search Inventory Posting Group

2. Select New.

3.  In the Code field, type a unique identifier.

4.  In the Description Field, type description of Inventory Posting Group.

Creating New Inventory Posting Groups

Steps: Setting up Inventory Posting Setup

1. In search option, enter Inventory Posting Setup and then choose related link.

Global Search - Inventory Posting Setup

2. Select New to insert New Line.

3.  In Location Code Field, select the relevant location to combine with the Inventory Posting Group.

Creating New Inventory Posting Setup

4. Select the relevant inventory posting group in the Inventory Posting Group Code field.

Selecting Inventory Posting Group in Inventory Posting Setup

5. In each relevant account field, enter the G/L accounts that will be used to post transactions to:

·         Inventory Account: Specifies the number of the G/L account that item transactions with this combination of Location and Inventory Posting group posted to.

·         Inventory Account (Interim): Specifies the number of the G/L account to which to post the transactions with the expected cost for items in this combination.

·         WIP Account: Specifies the general ledger account number to which to post transactions for items in WIP inventory in this combination.

·         Material Variance Account: Specifies the number of general ledger account to which Material variance transactions for items in this combination.

·         Capacity Variance Account: Specifies the number of general ledger account to which to post capacity variance transactions for items in this combination.

·         Subcontracted Variance Account: Specifies the number of general ledger account to which to post subcontracted variance transactions for items in this combination.

·         Cap. Overhead Variance Account: Specifies the number of general ledger account to which to post capacity overhead variance transactions for items in this combination.

·         Mfg. Overhead Variance Account: Specifies the number of general ledger account to which to post Manufacturing overhead variance transactions for items in this combination.

Selecting G/L Accounts in Inventory Posting Setup

Steps: Assign Inventory Posting group to Item

1. In search option, enter Items and then choose related link.

Global Search - Items

2. Open the Item card

3.  Expand the Cost & Posting FastTab, in the Inventory Posting Group field, enter the appropriate posting group.

Assign Inventory Posting Group on Items

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Conclusion: 

Inventory posting group and setup use to posts entry to the G/L Account specified for the combination of Inventory Posting Group and Location Code linked to the item line entry.