Posting groups are used to classify the business and products when posting value to GL accounts.

For example:

  • Buying and selling the inventory,
  • Buying,manufacturing and selling the inventory
are two different type of business. 

User will not be allowed to select and post the values in to general ledger accounts directly in any transactions.


Posting groups are used when you are

  • Selling inventory or resources (to customers), 
  • Buying inventory or resources (from Vendors),  
  • Paying money (to vendor), 
  • Receiving money (from customer).
  • Producing an item

Major posting groups:
  1. Business Accounting Group
  2. Product Accounting Group
  3. Inventory Accounting Group
  4. Bank Accounting Group

Business accounting group:


The business account groups can be set up to 


1- Group the customers and vendors by geographical area (Domestic, EU Countries/Regions, Overseas, and so on) , or

2- The type of business (retail, industrial, wholesale, service) , Or

3- Distinguish between private entities and government agencies. Etc...

 

The numbers of groups are directly related to the chart of accounts.

 

If you do not want to distinguish sales and purchases by customers or vendors, it is not necessary to set up any Business Account Groups. System will assign the Default Business Group.


Product accounting group:

 

The Product accounting groups can be set up to

 

1- Group the products by its nature in the business (Trading Products or Manufacturing Products) , or

2- The type of Products (retail, industrial, wholesale, service) , Etc...

 

The numbers of groups are directly related to the chart of accounts.

 

If you do not want to distinguish sales and purchases by product groups, it is not necessary to set up any product accounting groups. System will assign the default product accounting group.


The group wise profit & loss account and other reports will be generated based on this setup


Inventory accounting group:


The Inventory account groups can be set up


1- To organize the various Items (Example: Raw Material, Finished Good ) or 

2- To organize the types of Items (Mobiles, Home appliances, Garments. etc..)



It will be used to define the balance sheet Inventory Accounts for your various Items through

Inventory Accounting Setups.


Bank accounting group:


It will be used to consolidate the bank books.The bank accounting groups can be set up to organize the various bank accounts in to single group and map with GL accounts

 

To check this at demo.onclouderp.com > account > Posting groups