RSMUS.comSo, what are posting profiles? They are the Dynamics 365 configuration of automatic transaction journal entries. These setups are the heartbeat of the system and a majority of the setup lives in the Inventory Management Module under Setup > Posting > Posting. The topic can get quite involved with complex designs, so we will start with the basics.
Today we will cover Posting Profile setup for Purchase Order Receipt and Invoice related to the purchase of Raw Materials.
Posting Profiles
Say we want D365 to automatically process the following business process:
Create the following Main Accounts in General Ledger and create an Item Group named RAW, Raw Materials in Inventory Management.
When the Purchase Order Receipt is posted it will use the following setups.
Inventory management > Setup > Posting > Posting > Purchase order (tab)
The “Cost of purchased materials received” posting type will debit Accrued Inventory.
The “Purchase, accrual” posting type will credit Accrued Liabilities.
3. Purchase Order Invoice
When the Purchase Order Invoice is posted it will reverse the accruals posting for the Purchase Order Receipt, and then record the following final (financial) postings.
Inventory management > Setup > Posting > Posting > Purchase order (tab)
The “Cost of purchased materials, invoiced” posting type will Debit Financial Inventory.
Accounts payable > Setup > Vendor posting profiles
The “Vendor” posting type is setup in the Accounts Payable module.
The “Vendor” posting type will Credit Financial Liability (Accounts Payable).
4. Purchase Expenditures
These accounts are used when posting the Purchase Order, thus need to be setup.
Their values on journal vouchers will usually ‘net’ to zero.
Note: Values that do not net to zero will manifest when doing gain/loss Purchase Order Returns when a return is for a different Standard Cost value than the original purchase order’s Standard Cost.
Inventory management > Setup > Posting > Posting > Purchase order (tab)
The “Purchase expenditure un-invoiced” and “Purchase expenditure for product” posting types are coded to expense accounts so the Trial Balance resets to zero when the year-end General Ledger process is run.
