Posting account

When you create a journal entry or subsystem transaction line, you must assign a posting account to the line. A posting account is a detail account that is attached to an accounting unit for the purpose of posting. A posting account enables you to indicate which detail accounts are valid for an accounting unit.

You must assign detail accounts to accounting units during setup, or use the dynamic account assignment feature to automatically assign a detail account when you add a transaction.

Example

LGE has an outpatient services accounting unit. LGE has created posting accounts that make it valid for outpatient services to post revenue to these detail accounts:

  • 41000-0000 Sales - Prescription Drugs

  • 41100-0000 Sales - Non-prescription Drugs

Posting accounts also make it valid for outpatient services to post expenses to these cost-of-goods sold detail accounts:

  • 51000-0000 COGS - Prescription Drugs

  • 51010-0000 COGS - Non-prescription Drugs

By creating posting accounts that do not allow other accounting units such as human resources or MIS to post to these detail accounts, LGE maintains tighter control over posting options and reduces posting errors.