Posting Groups are centralized command centers for directing transactions posted in the General Ledger. There will always be a System Default Posting Group with the option of creating additional Custom Posting Groups as required by an organization's detailed posting needs.
System Default Posting Group
The System Default Posting Group contains all of the Account Categories used by the various posting processes or used as defaults in data entry screens. New projects created in Unanet will automatically default to use the System Default Posting Group, which can be overridden by selecting a Custom Posting Group, if necessary.
Navigate to Admin >Setup > Accounting > Posting Groups.
All accounts that must be resolved by the various posting processes or used as defaults in data entry screens are listed in the default posting group under the Account Category column. For each Account Category, the user must specify where the system should obtain both the Financial Organization and the Account that will be used in posting transactions related to the Account Category. This is done by specifying:
- An Organization Source, which is used to resolve the Financial Organization.
- The combination of Account Source Type/Account/Account Source(s), which is used to resolve the Account.
The Account Sources are read from right to left. In other words, the post process starts looking at the right column PAYMENT METHOD and if a check is supplied there it will post the appropriate account from the Payment Method. If instead, there is no check supplied for Payment Method, the post process will move one column to the left to ADDITIONAL ITEM TYPE and if a check exists in that column it will post the appropriate account from the Additional Item Type. It will keep moving from right to left until it finds a check mark and an account in the appropriate place.
In the example below for the ACCOUNT CATEGORY Labor Cost, an administrator has placed a check mark in both the PROJECT and PROJECT TYPE columns. This means that the post process will look at the selected project first. If there is an account set up on the applicable project for Labor Cost, then that account will be posted to in the General Ledger. If no account has been specified there, the system will move on leftward to the PROJECT TYPE for the applicable project and find the specified Labor Cost there. If the account has not been specified in the PROJECT TYPE, the system would next look to the default account listed under ACCOUNT column. Since there is no default Labor Cost account identified, the system will then give an error for the posting in question, and you would need to go set up an account either in the applicable Project or the applicable Project Type.
Navigate to Admin > Setup > Accounting > Posting Groups > Edit Pencil Icon > Posting Defaults tab.
The options available for Organization Source vary depending on whether the relevant attribute is available for the posting by Account Category and will contain one or more of the following options:
- Legal Entity - If selected, the organization will be set to the default organization of the legal entity in which the posting is performed. Note that if the default organization is not specified for the legal entity, the posting process will error out until a default organization is specified. This option is available for all Account Categories and is the typical value used for any balance sheet account categories. This is the only value available for account categories where the transactions generated or defaults made are not related to a project or person.
- Project - If selected, the organization will be set to the Project Owning Organization of the project/task of the transaction. To resolve this value, the posting process will first look at the Task Owning Organization of the transaction and use that if it exists. If not, it will use the Project Owning Organization.
- Person - If selected, the organization will be set to the Person Organization of the person related to the transaction. This lookup will use the Person Organization from the related assignment for timesheet entries if specified. If the transaction is not related to a person, or the Person Owning Organization is not a financial organization (e.g. non-employee), the Project Owning Organization Source logic will be used.
Account Source Type
The Account Source Type determines whether the posting processes will use a Fixed Value, or otherwise a Variable Value. If Fixed, then an Account value must be populated in the Account column. If Variable, then the account may vary based upon which account information is provided.
- Fixed - If Fixed is selected, the posting process will always use the value specified in the Account field as the account used for the posting.
- Variable - If Variable is selected, the post process will look for an account based on any Account Sources checked for the account category from right to left. The available Account Source for each account category are indicated via preset dashes when viewing the posting group, and are set via check boxes upon edit. The posting processes will use the value specified in the Account field if no accounts are found based on the selected Account Sources.
Set up the accounts necessary as you go through the Posting Group creation. For example, if you are going to post, Recognized Revenue based on Project Type, then an immediate action item is to set up the Recognized Revenue Accounts in the Project Type setup (Admin > Setup > Project Types). See sample screenshots below for setup of the actual accounts in Project Types.
Custom Posting Groups
A Custom Posting Group may be required for Projects within the organization that do not follow the standard posting practices of the remainder of the organization.
Examples of why you might create additional Custom Posting Groups include:
- If you want the labor costs for direct projects to be based on Cost Elements (e.g., On-Site Direct Labor vs. Off-Site Direct Labor) and if you want charges to indirect projects to be based on the Project (e.g., OH Labor, G&A Labor, Vacation, Holiday, etc.).
- If you have multi-divisional entities then you may need additional posting groups to handle the different methods of posting transactions.
- If you want internal projects to follow the person and direct projects to follow the project.
- If you want some internal projects to follow the Project Organization, and other internal projects to follow the Person Organization.
When Projects are created in Unanet, the Default Posting Group is automatically selected in the Project Profile under the Accounting tab. Any projects for which a Custom Posting Group is appropriate must have this Default changed to the appropriate Custom Posting Group in that tab of the Project Profile.
Navigate: Project > List > List tab> +Project > Accounting.
Posting Group usage by non-Financials customers
You may not have a Financials license, but may still benefit from using Posting Groups.
Use of posting group/accounts can replace complicated export logic.
Cost/Benefit: More complicated setup & additional processing steps (“The Juice may not be worth the Squeeze”).
Posting freezes data into appropriate period in cost reports (for example, adjustments to prior periods).
Database fields missing from Journal Entry export - it is possible these may be added in if needed.
Ability to run cost reports on posted data only in order to reconcile to external accounting system.
Limited Export Selection Criteria.
Ability to run Journal Details/Journal Summary report to review data prior to export.
|May require auto-lock (since there is no extract data in Journal Entry Export).|
Reduces rounding issues (rounds to dollars and cents).
|Useful infrastructure for future upgrade to Financials.|