Posting Groups in Project Madeira

When you create a new company in Project Madeira, you will get the new Chart of Account by default. This Chart of Account is created in this case by US legislation (this version is only for US); I hope it will contain for all countries as we will have localisations.

The same thing is with all posting groups. We have these posting groups already created from the beginning, and we need to use them in data migration process. Of course, if you need more posting groups, you need to add new and setup them as well. By default, we have limited set of posting groups:

  • Customer/Vendor Posting Groups: DOMESTIC
  • Gen. Business Posting Groups: DOMESTIC
  • Get. Product Posting Groups: NO TAX, RETAIL and SERVICES
  • Bank Account Posting Groups: CASH, CHECKING and SAVINGS
  • Inventory Posting Groups: RESALE

And when you open Inventory Posting Setup for your existed group, you will see that we can add GL accounts, but is has not Locations.

MadeiraIPG.jpg

That means we have not locations in the Project “Madeira”. This is not connected only with setup; that also means we cannot use locations in inventory process. You also cannot find fixed assets in Project “Madeira”.

It also means setup is not so hard, but it still requires some specific knowledge about the main thing of system and we cannot expect from client to configure it by himself.

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Posting Groups #21 – FA Disposal Posting

When you want to post disposal of Fixed Assets, you can do it using FA G/L Journals. You must choose Disposal as FA Posting Type. In my examples, I post this journals with marked Depr. until FA Posting Date field.

You can get two different types of G/L entries, depends of setup in Depreciation Book. You can choose Net or Gross method on Disposal Calculation Method field.

In my first example, I have used net method. In this example I used FA with already posted some depreciation and write-down entries.

FA Disp Nm

In my second example, I have used gross method. In this example I used FA with already posted some depreciation and appreciation entries (entries can be different, depends your FA has had appreciation or write-down).

FA Disp Gm

All of these posting results depend only of FA Posting Type.

Posting Groups #20 – FA Write-Down and Appreciation

When you want to change Fixed Asset value, you can do it on few ways. In this post, I will show you how you can do it using Write-Down and Appreciation in what will be results of these postings in G/L entry, based on posting groups you use.

Both of these posting types, you can do using FA G/L Journals. Posting depends on FA Posting Type.

In my first example, I will use Write-Down FA Posting Type. If we do not mark Depr. until FA Posting Date field, the result will be as following:

FA WD 1

But, if we mark this field, result will with some difference (system will post depreciation in the same register):

FA WD 2

In my second example, I will use Appreciation FA Posting Type. Again, in my first posting I will not mark Depr. until FA Posting Date field and result will be as following:

FA App 1

If we however mark Depr. until FA Posting Date field, the result will be as following:

FA App 2

But, we have common fact with all of these examples. In all of them, system only uses FA Posting Groups and manually configured Balance Account No.

Posting Groups #19 – FA Sales Credit Memo Posting

It is usual to have possibility to post Credit Memo for any item you sold. You can also make Credit Memo for Fixed Assets you sold. Generally, you can use the same flowchart about using of posting groups, as I published for FA Sales Posting.

But G/L entries will not be the same (with opposite sign) as you got in FA sales posting process. You will get the following G/L entries:

FA_Sales_CrMem

Entries are a bit different in comparison with posted invoice. Entries in FA Ledger Entries also will be the different. You will get only Gain/Loss FA Posting Type entries in FA Ledger Entries with Credit Memo Document Type. That means, you must create additional Acquisition and Depreciation entries manually, if you want to have Fixed Asset again in your system.

Posting Groups #18 – FA Sales Posting

If we want to sale our fixed assets, it is a similar process as FA purchasing, but in opposite direction. In this situation, system uses customer posting group, VAT and general posting groups and FA posting groups.

You can see this process concept on following flowchart. One of specifics is how system determines VAT Production Posting Group. You can use it on one of following ways:

  • Manually choosing VAT Production Posting Group;
  • Inheriting from manually choosing/changing General Production Posting Group (Def. VAT Prod. Posting Group);
  • Inheriting from VAT Production Posting Group, configuring on Acq. Cost Acc. On Disposal on FA Posting Group;
  • Inheriting from General Production Posting Group (Def. VAT Prod. Posting Group), configuring on Acq. Cost Acc. On Disposal on FA Posting Group.

FA_Sale_FwC

Other specific in FA sales process is that system uses different configuration from FA Posting Group, depending of FA sales price (higher or lower price in comparison with Book Value).

In my first example, you will see what G/L entries you will get when we sale FA with higher price:

FA_Sale_G

In this example, you will see result of FA sales posting with lower price:

FA_Sale_L

On both of these examples, you will see that we have the last additional G/L entry. This entry will exist as Residual caused by rounding of Additional-Currency, but only if you use Additional Currency configured on General Ledger Setup. This entry will be usually a zero amount.

Posting Groups #17 – FA Reclassification Journal Posting

If we need to transfer, split up or combine our fixed assets, we can do it using the FA reclassification journal. In my following example, I split up my existed FA, but everything is almost the same in other examples. Using the FA reclassification journal, system uses only FA Posting Group for G/L entries allocation.

When you Reclassify your journal, you will get lines in FA G/L Journal. After you post it, you can see this posting result in G/L entries in following table:

FA ReclassJ

Posting Groups #16 – FA Depreciation Posting

Depreciation is a method of allocating the cost of a Fixed Asset over its useful life. In NAV for this purpose, you can run batch job Calculate Depreciation. In this posting process, system will use only FA Posting Groups.

Assuming you checked, ‘Insert Bal. Account’ on Calculate Depreciation batch job, you will get following G/L entries as posting result:

FA_Depr_post