Flying high above the Earth for an on-site engagement with a client, I was reviewing some NAV setup, and then began entering test transactions. What I was met with was once again something like a UFO abnormally. So gazing through the planes window viewing the beautiful mass unknown, I finally decided, after many years of working with Dynamics NAV to get to the bottom of the notorious error message I have encountered many times before:
(Click on image to enlarge)
Sure I know how planes fly, well enough to get on one, and I know how to resolve the above error, because NAV tells you what’s wrong, but what on Earth could be the true cause? Where does the error come from? Why does NAV require a General Posting Type (GPT) for one transaction and not another?
Belief used to be this error only appeared when ‘income statement’ type general ledger accounts were used on ‘sales and purchase order pages’, hence the use of “SALES and PURCHACHES” general posting type.
Even Microsoft still has this in their “Help” documentation…
“The Gen. Posting Type field should be filled in only for revenue and expense accounts where Tax is involved. For other accounts, select Blank.”
No longer is this the truth. Recently I encountered the same error on a general journal. It also occurs for a balance sheet accounts when special situation occur such as setting ‘normal VAT’ on a journal line without VAT setup.
It’s now time to drop the landing gear and find out what the GPT is all about.
First, a little declaimer; for the purposes of the explanation the term VAT and TAX can be used synonymously.
After digging in and researching both Microsoft and non-Microsoft sponsored sites in summary this was what revealed:
- The program automatically retrieves the general posting type from the General Posting Type field on the G/L account card when you insert a G/L account in the account no. field.
- The program uses the general posting type, together with the VAT Bus. Posting group and VAT prod posting group fields, to find the account to which VAT is posted. –NOTE- this again may not be the completely accurate because we encounter this error when NO VAT is being used.
- There continue to be 3 GPT options:
So just like humans may never understand how birds fly but have built planes that do, there still a bit of cloudy understands surrounding General Posting Types. However below are suggestions to avoid encountering this error.
- IF your company intends to use g/l accounts on order entry pages (sales and purchases, service item worksheets etc…) be proactive and enter a GPT on the G/L account card.
“Sales” for revenue accounts and “Purchase” for COGS and other P&L accounts.
- IF your company does NOT use VAT (just US sales tax or none at all) and you are importing G/L history make sure of two(2) things for balance sheet accounts
- In Tax Posting Setup there is at least one (1) entry where sales tax is selected
- Upon importing the entries view the posting type on the line and make sure it is ‘Sales Tax’.