Inventory Posting Profiles

The Posting profiles configuration page within the Inventory Management module serves as the central architectural matrix that maps physical inventory transactions to precise General Ledger (GL) accounts. This ensures that every logistical movement—whether a receipt, issue, or revaluation—automatically generates the correct double-entry financial voucher.

By decoupling the physical item from a hardcoded GL account, posting profiles allow the system to dynamically resolve the correct account based on the transaction context (e.g., Sales vs. Purchasing) and item groupings.

Accessing Posting Profiles

Navigate to Inventory management > Setup > Posting > Posting profiles.

The interface is horizontally organized by operational tabs (e.g., Inventory, Sales invoice, Standard Cost Variance, Purchase Invoice). Each tab contains specific Posting Types that represent discrete financial events.

Within each posting type, you configure the resolution hierarchy:

• Item Code: Dictates the specificity of the rule (Table for a specific item, Group for an item group, or All for a universal default).
• Item Relation: The specific item or group ID (if applicable).
• Ledger Account: The designated GL main account that will absorb the financial impact.

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1. Inventory Ledger Events

The Inventory tab governs core asset valuation events, specifically controlling how the Balance Sheet inventory asset account is debited or credited during logistical movements or standard cost revaluations.

Posting Type	Financial Application	Typical GL Account Type	Description
Inventory receipt	Debit (Increase)	Asset (Balance Sheet)	Increases the financial value of stock. Triggered when an item's Standard Cost is revalued upwards, recognising an unrealised gain against the asset.
Inventory issue	Credit (Decrease)	Asset (Balance Sheet)	Decreases the financial value of stock. Triggered when an item's Standard Cost is revalued downwards, absorbing the loss against the asset.

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2. Sales Invoice Ledger Events

The Sales invoice tab dictates the comprehensive financial distributions generated when an Accounts Receivable invoice is posted. The engine utilizes these profiles to construct the multi-line voucher required for GAAP/IFRS revenue recognition and Cost of Goods Sold (COGS) matching.

Posting Type	Financial Application	Typical GL Account Type	Description
Cost of units	Credit	Asset (Balance Sheet)	Relieves the inventory asset account for the exact cost value of the items sold. This offsets the COGS debit, adhering to the matching principle.
Cost of goods sold	Debit	Expense (P&L)	Recognises the direct cost expense associated with the items sold on the invoice.
Revenue	Credit	Revenue	Records the top-line gross revenue generated from the sale, excluding taxes or separate charges.
Discount	Debit	Contra-Revenue (P&L)	Captures any line-level discounts granted to the customer, segregated from gross revenue for analytical visibility. If left unconfigured, the system automatically falls back to a net posting method, reducing the gross revenue posting directly rather than recording a separate contra-revenue entry (GAAP-compliant).
Commission	Debit	Expense (P&L)	Recognises the internal sales commission expense incurred by the sale.
Commission offset	Credit	Liability (Balance Sheet)	Records the accrued payable liability owed to the sales representative or broker.
Customer prepayment	Debit/Credit	Liability (Balance Sheet)	Maps to unearned revenue or customer deposit accounts, utilized when applying a prior prepayment to the final invoice.
Customer balance	Debit	Asset (Balance Sheet)	While primarily driven by the AR Customer Posting Profile, this specifies item-specific overrides for routing the total receivable debt to a specialised subledger control account.

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3. Standard Cost Variance Ledger Events

The Standard Cost Variance tab specifies the GL accounts used to isolate discrepancies between actual operational costs and activated standard costs. These accounts are strictly utilised by the system's variance generators and revaluation engine.

Posting Type	Financial Application	Typical GL Account Type	Description
Purchase price variance	Debit/Credit	Expense (P&L)	Records the difference between the actual purchase invoice cost and the item's Standard Cost. An unfavourable variance (Actual > Standard) generates a Debit (expense), whilst a favourable variance generates a Credit (contra-expense).
Inventory cost revaluation	Debit/Credit	Income/Expense (P&L)	Serves as the P&L offset when activating a new standard cost. It recognises the unrealised gain (Credit) or loss (Debit) generated by revaluing the existing physical on-hand inventory.

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4. Purchase Invoice Ledger Events

The Purchase Invoice tab governs the financial distributions generated when an Accounts Payable invoice is posted, routing the procurement costs and supplier discounts to the correct ledger dimensions.

Posting Type	Financial Application	Typical GL Account Type	Description
Cost of purchased materials	Debit	Asset/Expense	The primary debit entry for procured items. For inventoried items, this represents the asset acquisition value (at standard or actual cost). For non-stocked items, this acts directly as the procurement expense.
Discount	Credit	Expense	Captures line-level vendor discounts. Similar to sales discounts, if this is left unconfigured, the system dynamically reverts to a net posting method, automatically reducing the Cost of purchased materials debit rather than generating a separate credit entry (GAAP-compliant).
Vendor prepayment	Debit/Credit	Asset (Balance Sheet)	Maps to prepaid expense or vendor deposit accounts, utilised when applying an earlier prepayment against the final vendor invoice.

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The Resolution Engine

When a transaction is posted, the system's Accounting Distribution Generator evaluates the posting profiles from most specific (Table) to least specific (All). Always ensure an All record exists as a failsafe to prevent "Account not found" posting errors during high-volume invoice generation.