Vendor ledger accounts in Dynamics 365 Finance are based on the "Posting profiles" that determine the balance account where the transaction, based on the type of movement and vendor group, is posted.
This setup is normally defined by the country requirements, example intercompany vendor is posted in a unique ledger account, so, there are multiple vendor groups with the specific ledger account linked in the posting profile. For this reason is really important to don't change the vendor group for a vendor with transactions, because one of the hardest tasks during month or year closing is to match ledger balance with vendor transactions if the vendor group has been changed (if you have suffer it as me you know how difficult can be …) and I guess that's the reason why we have a new feature "New vendor balance list report to reflect posting profile changes" that looks small but it's a live-changing functionality.
With an example you will understand the huge difference. This vendor belongs to the group "40" so all the posting are done in the ledger account 200110:
Before I activate the feature, I run the report Accounts payable > Inquiries and reports > Vendor reports > Vendor balance list, and I get this result for the vendor:
Now, I change the vendor group to the "10" with the related ledger account 200100 (don't do this at home, this is only for testing purpose!! 😜):
And I post a new invoice. I run again the report, and this is the result, it's not correct at all because all the previous invoices were posted in the account 200110 and not to 200100. That's why if I will try to match the ledger account with the vendor postings it's going to be extremely difficult, I don't have a report that shows the real postings...
Until now!! If I enable the feature and run the report again, I can see the two ledger accounts. Great, the real postings are showed in the vendor transactions:
That's the reason why I love the One Version service updates for Microsoft Dynamics 365 Finance, the releases include new functionalities but also improvements in the actuals ones making the system even better.
We are always reviewing and aware about new features, so, if you are interested in learning more, please do not hesitate to contact us.