Reference · Finance

Posting groups

Which group decides which account

Amount posted	Account	Found on	By
A customer’s receivable	Receivables Account	Customer Posting Groups	The bill-to customer’s Customer Posting Group
A vendor’s payable	Payables Account No	Vendor Posting Groups	The vendor’s Vendor Posting Group
A bank account’s money	GL Account No	Bank Account Posting Groups	The bank account’s posting group
Sales of items and resources	Sales GL Account	General Posting Setup	Gen. Bus. Posting Group (of the customer) + Gen. Prod. Posting Group (of the item)
Purchases of items and resources	Purchases GL Account	General Posting Setup	Gen. Bus. (vendor) + Gen. Prod. (item)
Cost of goods sold	COGS Account	General Posting Setup	Gen. Bus. (customer) + Gen. Prod. (item)
Stock bought, other side	Direct Cost Applied Account	General Posting Setup	Gen. Bus. (vendor) + Gen. Prod. (item)
Stock received, not invoiced	Goods Received Not Invoiced Account	General Posting Setup	Gen. Bus. (vendor) + Gen. Prod. (item)
Sales VAT	Sales VAT GL	VAT Posting Setup	VAT Bus. Posting Group (customer) + VAT Prod. Posting Group (item or account)
Purchase VAT	The purchases VAT account	VAT Posting Setup	VAT Bus. (vendor) + VAT Prod. (item or account)
The VAT rate	VAT Percentage	VAT Posting Setup	VAT Bus. + VAT Prod.
Stock’s value	Inventory Account	Inventory Posting Setup	Location + Inventory Posting Group (of the item)
Adjustments, counts, assembly	Inventory Adjmt. Account	Inventory Posting Setup	Location + Inventory Posting Group
Exchange gains and losses	The realized and unrealized gains and losses accounts	Currency Card	The currency
A G/L account line	The line’s own account		The line

A document takes its business groups (Gen. Bus., VAT Bus., Customer or Vendor Posting Group) from its customer or vendor, and each line its product groups from its item, resource or G/L account.

Who carries which group

Record	Groups
Customer	Gen. Bus. Posting Group, VAT Bus. Posting Group, Customer Posting Group
Vendor	Gen. Bus. Posting Group, VAT Bus. Posting Group, Vendor Posting Group Code
Item	Inventory Posting Group, Gen. Prod. Posting Group, VAT Prod. Posting Group
Resource	Gen. Prod. Posting Group, VAT Prod. Posting Group
G/L account	General Posting Type, Gen. Bus., Gen. Prod., VAT Bus. and VAT Prod. posting groups (for journal and document lines)
Bank account	Bank Account Posting Group Code

Passion Bakery’s groups

Kind	Codes
General business	DOMESTIC (customers and vendors in Uganda)
General product	INGREDIENT (ingredients and packaging), BREAD (bread and buns), PASTRY (donuts and cookies), CAKE (cakes), SERVICES (delivery and other services), OVERHEADS (rent, utilities and other overheads)
VAT business	DOMESTIC
VAT product	STANDARD (18%), EXEMPT (fresh eggs and milk)
Customer	DOMESTIC: receivables 110400 Trade Debtors
Vendor	DOMESTIC: payables 120100 Trade Creditors
Bank account	BANK: 110200 Stanbic Bank; CASH: 110100 Cash on Hand, Shop Till
Inventory	RAW, PACKAGING, FINISHED

General Posting Setup (all with DOMESTIC)

Gen. Prod.	Sales	Purchases	COGS	Direct Cost Applied	Goods Received Not Invoiced
INGREDIENT	210400	220200	220100	220200	120200
BREAD	210100	220200	220100	220200	120200
PASTRY	210200	220200	220110	220200	120200
CAKE	210300	220200	220120	220200	120200
SERVICES	210400	230600
OVERHEADS	210400	230600

VAT Posting Setup

VAT Bus.	VAT Prod.	VAT Percentage	Sales and purchases VAT account
DOMESTIC	STANDARD	18	120300 VAT Payable/Receivable
DOMESTIC	EXEMPT	0	120300 VAT Payable/Receivable

Inventory Posting Setup (the same at BAKERY, SHOP and VAN)

Inventory Posting Group	Inventory Account	Inventory Adjmt. Account
RAW	110500 Raw Materials Inventory	220300 Inventory Adjustments
PACKAGING	110510 Packaging Inventory	220300 Inventory Adjustments
FINISHED	110520 Finished Goods Inventory	220300 Inventory Adjustments

See Posting setup and VAT for how they work together.