Drag and Drop Question A heavy equipment dealership with two warehouses is implementing Business Central. One warehouse is for parts, and one is for equipment. The dealership must separate inventory…

The correct answer is General Posting Setup; Inventory Posting Setup. Business Central Inventory Posting - Explanation The Core Requirement The dealership needs inventory transactions to hit two separate G/L balance sheet accounts based on item type (Parts vs. Equipment). In Business Central, two setups work in tandem to control all posting…

Inventory

Question

Drag and Drop Question A heavy equipment dealership with two warehouses is implementing Business Central. One warehouse is for parts, and one is for equipment. The dealership must separate inventory by the type of item and post to two general ledger (G/L) accounts: - Parts inventory - Equipment Inventory You need to configure the system to post inventory to the correct G/L accounts. Which components should you use? To answer, move the appropriate components to the correct configurations. You may use each component once, more than once, or not at all. NOTE: Each correct selection is worth one point. Answer:

Exhibit

Answer Area

Drag items

General Posting SetupInventory Posting SetupLocationItem

Correct arrangement

General Posting Setup
Inventory Posting Setup

Explanation

Business Central Inventory Posting - Explanation

The Core Requirement

The dealership needs inventory transactions to hit two separate G/L balance sheet accounts based on item type (Parts vs. Equipment). In Business Central, two setups work in tandem to control all posting: General Posting Setup and Inventory Posting Setup.

Why These Two - and Not the Others

1. General Posting Setup

Controls G/L account mapping for revenue, COGS, purchase discounts, and inventory adjustments by combining a Gen. Business Posting Group (who you're selling to/buying from) with a Gen. Product Posting Group (what category the item belongs to).

You create Gen. Product Posting Groups (e.g., PARTS, EQUIP)
Assign them to items
The Setup maps those combinations to accounts like COGS and sales revenue
It's required for any complete item transaction to post without errors

2. Inventory Posting Setup

Controls which inventory balance sheet G/L account is used. It maps:

Location Code + Inventory Posting Group → Inventory G/L Account

This is the direct answer to the requirement:

Create Inventory Posting Groups: PARTS, EQUIP
Assign each group to the relevant items
In Inventory Posting Setup, map PARTS → Parts Inventory account and EQUIP → Equipment Inventory account
Optionally include the Location to further differentiate by warehouse

Why Location and Item Are NOT the Answer

Component	Role	Why It's Wrong Here
Location	An input field used inside Inventory Posting Setup	It doesn't define G/L accounts itself - it's a filter criterion within the setup
Item	Carries the Inventory Posting Group and Gen. Prod. Posting Group assignments	It's a carrier of config, not a configuration table - the actual G/L mapping lives in the Posting Setup tables

A common mistake is selecting Location thinking "we have two warehouses, so Location must be the answer." The Location is relevant within Inventory Posting Setup (you can make the mapping location-specific), but it is not the configuration mechanism itself.

Another mistake is selecting Item - while items must have posting groups assigned to them, configuring an Item card is not what creates the G/L account mapping. That mapping lives exclusively in the Posting Setup tables.

Summary

Both correct answers are setup tables, not master data records:

General Posting Setup - governs the income statement side (COGS, revenue, adjustments)
Inventory Posting Setup - governs the balance sheet side (which inventory account is debited/credited)

Both must be configured correctly for inventory to post to the right G/L accounts end-to-end.

Topics

#inventory posting groups#G/L accounts#item categories#inventory setup

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