Posting definitions vs Posting profile in Dynamics AX

In this post, i am going to describe what is the difference between Posting definitions and Posting profile in Dynamics AX.

Posting definitions	Posting profile
It is used when multiple offset, balanced ledger entries based on transaction types and accounts are needed	It is used when there is only one offset ledger entry is needed.
Posting definitions applies on the whole module. For example: If Accounts payable module is selected while creating posting definition then balancing or offset entries of that posting definition will be effective on the whole Accounts payable module.	Posting profile applies on the vendors and customers. Both vendors and customers has separate posting profile setup.
Posting definitions supersede Posting profile if Use posting definitions checkbox is checked on General ledger parameters form. Path of this form is General ledger > Setup > General ledger parameters Below is the screenshot of the form.	Posting profile can only be effective if  Use posting definitions checkbox is unchecked on General ledger parameters form. Path of this form is General ledger > Setup > General ledger parameters Below is the screenshot of the form.

If Use posting definitions checkbox is unchecked and there is posting definition created but no posting profile created then posting definition will become effective

If Use posting definitions checkbox is checked and there is no posting definition created then posting profile will become effective

Posting profile will be usefull when each vendor and customer has separate sets of offset accounts used for their transactions.

Posting definition will be usefull when there is only one set of offset account used for their transaction.

Hope, you will understand the difference between posting definition and posting profile after reading this blog.

Happy Daxing!