Understand inventory posting

Dynamics 365 Business Central

Business Central has a unique way of handling inventory cost posting that allows users to record additional costs when purchasing inventory.
Unlike simple accounting software, Business Central records four transactions when purchasing inventory: Dr Inventory, Cr Direct Cost Applied, Dr Purchase, and Cr Accounts Payables.
Expected cost posting in Business Central allows users to post expected inventory costs when receiving items.
Expected cost posting generates two entries: Dr Inventory Interim and Cr Inventory Accrual (Interim), also known as Goods Received Not Invoiced (GRNI).
Inventory posting groups and general product posting groups are required to register inventory costs in Business Central.
Inventory posting groups determine the accounts used when posting inventory transactions, while general product posting groups are used for income statement accounts.
It is recommended to create separate balance sheet accounts for inventory and interim accounts if expected cost posting is used.
Careful planning and configuration of posting groups and general ledger accounts are necessary for proper inventory posting in Business Central.

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