Product Groups In Dynamics NAV

Posting Groups and Reporting in Dynamics NAV

Posted By
BDO

The major purpose of Posting Groups in Dynamics NAV is to provide a link between the sub-ledgers and the G/L, however, they also form the basis for determining some of the reporting functionality an organization requires. It is important to think about various groups that an organization would want to report on when defining the various posting groups.

Assume that your company is a bookstore. When defining the inventory related posting groups you might want to use a structure that allows you to get detailed reporting about the sales and purchases of your inventory in the following manner.

The inventory related groupings can be looked at as a hierarchy of sorts. The highest (or most summary level) would be the General Product Posting Group. The second level would be the Inventory Posting Group and then there are 2 additional levels of increased detail in the Item Category and Product Group fields.

Using the Bookstore as an example, an organization might define the various groups as follows:

General Product Posting Group

General Product Posting Group   
Fiction
Non-Fiction
Magazines
Giftware

Using the structure above it would be easy for the organization to print reports based on the 4 different groups.

To further break out the inventory, the Inventory Posting Group field can be used to create sub-groupings of the General Product Posting Group.

Inventory Posting Group

General Product Posting GroupInventory Posting Group  
FictionFantasy
Mystery
Science Fiction
Romance
Children
Non-FictionHistory
Self-Help
Sports
Geography
MagazinesSports
Fashion
Crafts
Gossip
GiftwareGames
Computer Accessories
Pottery

Moving through the hierarchy, it would be possible to further break down the inventory using the Item Category and Product Group fields. Please note that while every item must have a General Product Posting Group and an Inventory Posting Group, it is not a requirement to use the Item Category and Product Group fields.

Item Category

In the example below, there is not necessarily an Item Category breakdown for each of the Inventory Posting Groups. In some cases, the categories used in the Posting Group fields might be sufficient for the reporting needs of the organization.

General Product Posting GroupInventory Posting GroupItem Category 
FictionFantasy
Mystery
Science Fiction
Romance
ChildrenInfants
Toddlers
Age 6-8
Age 8-10
Non-FictionHistory
Self-HelpBusiness
Medical
Trades
Sports
GeographyTourism
Maps
MagazinesSports
Fashion

Product Group

The final group in the hierarchy is the Product Group field. This field is a subset of the Item Category.

General Product Posting GroupInventory Posting GroupItem CategoryProduct Group
FictionFantasy
Mystery
Science Fiction
Romance
ChildrenInfants
Toddlers
Age 6-8Serial Books
Educational Books
Standard Books
Age 8-10Serial Books
Educational Books
Standard Books
Non-FictionHistory
Self-HelpBusinessTax
Law
MedicalPsychology
Disease
Diet
Trades
Sports
GeographyTourism
Maps
MagazinesSports
Fashion
Crafts
Gossip
GiftwareGames
Computer Accessories
Pottery

Inventory reporting is often critical to managing an organization that has a distribution or manufacturing component. By using the various groupings available in Dynamics NAV, users can get many different levels of reporting. Using the example above reporting can be done in various levels of detail, based on how the report is filtered. For example, users can get detail on sales or purchases of Psychology books by filtering on Product Group Psychology. Following the hierarchy to the top, the user could filter on Item Category of Medical to get all of the items in the Medical category, or on Inventory Posting Group of Self Help to get all of the Self Help items.  For summary information you would filter on the General Product Posting Group of Non-Fiction to report on all items for the Non-Fiction group.

Customer Related Posting Groups

Similar to the inventory related posting groups above, there are also multiple posting groups on the customer master. These are the General Business Posting Group and the Customer Posting Group.

General Business Posting Group

When setting up the General Business Posting groups for Customers you might want to break the customers down by some type of industry breakdown such as Wholesale, Retail, School, Government etc. Other examples for this field might be International, National and Local.

  1. Wholesale
  2. Retail
  3. School
  4. Government

Customer Posting Group

When defining the Customer Posting Group it is important to remember that the recommendation is to have a defined posting group for each currency that you sell in. In the example below we are assuming that the General Business Posting Group for customers are Wholesale, Retail, School and Government.

General Business Posting GroupCustomer Posting Group
WholesaleWholesale - CAD
Wholesale - USD
Wholesale – EURO
RetailBig Box – CAD
Big Box – USD
Big Box – EURO
Sole Prop – CAD
Sole Prop – USD
Sole Prop – EURO
Chain – CAD
Chain – USD
Chain - EURO
SchoolPublic – CAD
Public – USD
Public – EURO
Private – CAD
Private – USD
Private – EURO
University – CAD
University – USD
University - EURO
GovernmentFederal – CAD
Federal – USD
Federal – EURO
Municipal - CAD
Municipal - USD
Municipal - EURO

Vendor Related Posting Groups

The Vendor related posting groups are usually the easiest to identify. The most common breakdown for vendor posting groups is as follows:

General Business Posting Groups

Although it is possible to create vendor groups to use in the General Business Posting Groups, most organizations do not have a significant need to breakdown the vendors into a great deal of detail. The most common Business Posting Groups for vendors are:

  1. Trade
  2. Expense

Vendor Posting Groups

Similarly, the vendor Posting Groups are often simply split across currencies. This would be setup as follows:

  1. Trade:
    1. CAD
    2. USD
    3. EURO
  2. Expense:
    1. CAD
    2. USD
    3. Euro

 

Shirley Wiens

Senior Consultant, NAV

 

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