Inventory posting profiles, item groups, and item model groups
The inventory posting profile controls which main accounts you can use with each posting update in the inventory subledger and general ledger.
Inventory management > Setup > Posting > Posting
Item groups
The system uses the item group that gets assigned to each item together with the ledger postings. You can use item groups to follow statistics on item sales, purchases, inventory, and productions.
Consider the structure of item groups carefully before proceeding. After you create the groups and use them in the item main table, you can't delete them. You can choose to create a large number of item groups and assign specific ledger accounts to each group. This approach allows for detailed control when you're tracking the value of items in process. Alternatively, you can choose to create only one item group to use for all physical items.
Ultimately, the customer's financial control requirements determine the number of item groups that you need to establish and set up.
Item model group
Item model groups contain settings that determine how the system controls and handles items in inventory and how it calculates consumption. Working with the customer and evaluating settings in the inventory model setup helps you determine the number of different inventory model groups that you need to create.
To determine the number of inventory model groups to create for the implementation, decide whether to:
Use the same inventory model for all items.
Quarantine a customer's specific items.
Adhere to special picking or reservation requirements on specific items.