Business Central Espresso - Business Posting Groups

What are business posting groups in Business Central? And why are they important for financial accounting?

Business posting groups show in Business Central which geographical affiliation a company has in order to be able to post transactions for this company to the corresponding general ledger accounts for VAT purposes.

Typical examples of business posting groups are:

• inland
• EU
• Export (outside the EU)

In Business Central, a business posting group is a code that is combined with a product posting group via the posting matrix to in turn drive the appropriate P&L accounts.

If, for example, goods or services are delivered to a German customer (B2B), Business Central recognizes the situation based on the business posting group INLAND and, in combination with the product posting group, will take this sale into account with 19% sales tax.

If it is an Austrian customer (B2B) who has the business posting group EU in the master data, the situation in Business Central is treated differently from a sales tax perspective.

The business posting group is assigned to a customer through the customer card and to a vendor through the vendor card.

This is how the assignment looks in Business Central:

The business posting group became customer Adatum Corporation INLAND assigned.

Example of a business posting group from a vendor card:

The Vendor Fabrikam Inc. became the business posting group International Trade assigned.