Exploring GL Posting Definitions in D365

August 4, 2022

Are you in need of a timesaving D365 “hack?” Then posting definitions might be the topic of the day! What is a posting definition? An alternative to posting profiles, posting definitions can be used when one needs to create multiple ledger entries, using multiple offset accounts. Whereas a posting profile is only associated with one offset account. A posting definition also allows the user to set match criteria that subsequently generates subledger journal entries from the posting definition form. This is especially helpful for those of you in the non-profit sector that must use pre-encumbrance/encumbrance reporting.

Staying within the budget is essential for a nonprofit. The use of Posting definitions in combination with encumbrance processing allows the user to “reserve” the funds for the expense, ensuring they are not exceeding the available budget. We will go through a straightforward example today to review the performance for the encumbrance process.

In General ledger > Posting setup > Posting definitions create two new posting definitions with a Name, Description, Module, and the Effective/Expiration dates. One will be designated for pre-encumbrance and the other, encumbrance.

The required parameters are as follows:

Match criteria
Generated Entries

These parameters drive the automatic relief and replacement of the encumbrance but keep in mind, the encumbrance process must already be enabled, and Posting definitions must be active. We can verify the encumbrance parameters are active by first, navigating to Budgeting > Setup > Budget control > Budget control configuration, selecting the appropriate source document that is subject to budget control, and then enabling budget control.

Secondly, ensure Posting definitions are active by checking the Use posting definitions checkbox on the parameter set up page. It can be found by navigating to General ledger > Setup > General ledger parameters and then expanding Accounting rules.

accounting rules set up in general ledger

Assign the appropriate Account structure and Account numbers to the Match criteria and the Generated entries for pre-encumbrance/encumbrance similarly to how I have demonstrated below:

accounting match criteria and generated entries

Once both the pre-encumbrance and encumbrance Posting definitions are set up, D365 will create the subledger journal entries for pre-encumbrance and its subsequent relief.

In my opinion, the coolest feature in the Posting definition form has got to be the Test Posting Definition Wizard. Before the Posting definition is active, it is vital to test to ensure proper allocation of the generated entries. By selecting Posting definition > Test > Posting definition, we can validate the Posting definition setup by creating a sample originating entry.