Overview
Business Central uses two different dates on sales and purchase related transactions. Each date serves a distinct purpose.
– 1- One Controls Accounting
– 2- One Controls Payment Terms
Posting Date
The Posting Date is the date on which a transaction is officially recorded in the General Ledger, Item Ledger, Customer Ledger, and Vendor Ledger Entries. It determines the accounting period the entry belongs to.
What it Affects
- Which Accounting Period the G/L entry Falls into
- Inventory Valuation Date for Items
- Exchange Rate used if the Document is in a Foreign Currency (Business Central picks the exchange rate valid on the Posting Date)
Rules
If the Posting Date falls in a closed accounting period, Business Central will block the posting and show an error. You must either reopen the period or change the Posting Date to an open period. The Posting Date can be set manually or defaulted from the Work Date configured in Business Central settings.
Document Date
The Document Date is the date printed on the physical or electronic document. The invoice date, credit memo date, or order date as issued by the vendor or sent to the customer. It represents the commercial date of the document.
What it Affects
- Payment due date calculation based on Payment Terms
- The date shown on Printed Documents and Reports
Rules
Business Central calculates the Payment Due Date (Due Date) by adding the payment terms to the Document Date, not the Posting Date.
Example
Payment Terms = Net 30.
Document Date = July 1st
Due Date = July 31st.
Even if you post the invoice on July 5th, the due date is still calculated from July 1st. This is important for accurate aging reports and cash flow forecasting.
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