You are setting up new customers and items in Dynamics 365 Business Central.

Comprehensive Detailed Explanation

In Dynamics 365 Business Central, posting groups are used to map transactions to the correct General Ledger accounts. Each posting group has a specific purpose:

Gen. Bus. Posting Group (General Business Posting Group)

Used in combination with the Gen. Prod. Posting Group to determine income statement accounts (such as sales, discounts, COGS, purchase accounts).

Therefore, it controls the income statement side of customer and vendor transactions.

Customer Posting Group

Determines the balance sheet accounts for customers, e.g., Accounts Receivable (AR).

All transactions with customers post to AR accounts defined here.

Gen. Prod. Posting Group (General Product Posting Group)

Used in combination with Gen. Bus. Posting Group to determine the income statement accounts for items (such as sales revenue, COGS, inventory adjustments).

Inventory Posting Group

Determines the balance sheet accounts for items (e.g., Inventory accounts).

Ensures items are posted to the correct asset accounts.

Microsoft Learn References

Posting Groups in Business Central

Set Up General Posting Groups