80 - Posting Groups in Dynamics NAV 2017 - Part 3       

Today what I want to do is I want to talk about Bank account posting groups. Before we actually when to the customer, vendor, and item posting group, we discussed how that it actually posts to the balance sheet.

Those entities of course well known and they play all the roles pretty much in the supply chain but from the accounting perspective we also have something called bank which we reconcile and it gets posted to. And the bank I actually going to the balance sheet as well. It only goes to the balance sheet. So it belongs in this group as well so if you look at the second diagram that I put up. I’ve added the bank posting group here.

Bank
So if I go a little into that and explain the banks; I know this is side talking a little bit from where we were going before, but I think it's very important to include the bank; here we go into the cash management and we have here all the banks that are in the standard Cronus system, I think the operating one has most activity, I'll go here into the worldwide bank.

And if I go into posting here I can see that we have bank accounts posting group or bank posting group and in here we can see that the posting groups are lined out, if I click advanced you can see that each posting group is tied to a bank account so in this case we have two or three actually tied to an asset account which is 10,000.

The operating account is actually tied to a liabilities account probably because it runs negative from a credit line, so it belongs or makes more sense to have it on the liability side, but you can see here that this is all assets or balance sheet related accounts and post to that. 

So if I go for example into the journals and into the cash journal, cash receipts and let's say we are receiving something from a customer and they are paying us so we can say we are bringing something in from the Cannon group. And they are actually paying us 5000 so it reduces the asset to the cannon group, that's why I put negative and it's going to go into a bank account and here I pick the operating account, and so It's going to be debit into the bank account.

Here we are actually playing with two balance sheet transactions, so it has nothing to do with the income statements. It's all in the balance sheet. Receiving money from the cannon group and we’re posting it into the bank account, and of course I could have set this up to be a payment so it actually labels up as a payment, and when we do deposits or cash receipts we don't try to do it like this, we actually will use a cash receipt journal, but I’m just now highlighting the posting groups which are involved.

Let's say for example; I’m going to remember this document number here, and post it. I get out of here and I’m just going to go in navigate and if I go into navigate and put it in that document number. The navigate actually allows me to pick up all the transactions that were posted on that document number.

It goes everywhere in the system and just looks up what was posted with this document number and it gives me that here, so we have gel entry, customer ledger entry, and bank account ledger entry. So it went through the bank account, when through the customer account and found the posting groups represented by those and posted into the GL entry there.

So if we actually look at that we can see that we are hitting the liability, because I went into the operating accounts, and then we hit the asset account which is account receivable. So if I just click up here you can see its customer domestic, accounts receivable and over here we have revolving credit which was the posting group for that bank account.

I hope that explains the posting group aspect of the bank accounts and we’ll keep going on these posting groups explorations.