Receive Customer payments with Payment Registration in Microsoft Dynamics NAV 2015

I am very excited to share with you the new version of Microsoft Dynamics NAV 2015 which is now available worldwide. Microsoft Dynamics NAV 2015 offers significant new capabilities to help small and midsized organizations grow their businesses in a mobile-first, cloud-first world.

Microsoft Dynamics NAV 2015 also helps customers collect cash faster and spend less time managing it with new capabilities for automated account reconciliation. These enhancements include payment reconciliations and bank account reconciliations right within Microsoft Dynamics NAV.

The Payment Registration functionality is a unique method of handling customer receipts without creating entries through the Cash Receipt Journal. This functionality is designed to support users in tasks involved in balancing internal accounts by using actual cash figures to ensure effective collection from customers.


Department/Financial Management/Cash Management/Payment Registration

In this blog I am going to show how dates can be used in the batch job. Let’s discuss the following points:

How to:

· Setup Payment Registration

· Change the amount received or date received

· Different options to search for a document.

· Lump Payment – cover multiple invoices for one customer with a single payment

· Finance charge for overdue amounts

· Handling Payment Discounts

Payment Registration Setup

Before we start, we need to setup the defaults Journal Template information in the Payment Registration Setup. If the field Automatically Fill Date Received is selected, the work date will be used as the default date.

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Figure 1 Payment Registration Setup

Payment Registration

  • The fields ‘Payment Made’, ‘Date Received’, and ‘Amount Received’ reflects the actual cash situation before the payments are posted and only these fields can be modified.

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Figure 2 Payment Registration

  • All sales business documents are supported, such as orders, invoices, credit memos, and finance charge memos. Both partially posted and fully posted documents are included.
  • The Description field indicates what kind of document the line represents.

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Figure 3 Payment Registration

  • The Details button in the ribbon (Navigate Tab/Details) is used to view detailed information about a specific document as well as the related payment.

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Figure 4 Payment Registration Ribbon

  • The balance of the payments posted to the balancing account is shown in the Posted Balance field. The Un-posted Balance field shows the amount that exists on un-posted journal lines with the same balancing account. The Total Balance field shows the sum of the posted and un-posted amounts for the balancing account.

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Figure 5 Payment Registration Totals

  • If multiple balancing accounts for the payments is used, the balancing can be changed in the Setup (Ribbon/Navigate/Setup). You can also specify if the Date Received field is filled in when the Payment Made check box is selected.

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Figure 6 Payment Registration Ribbon – Setup

  • If payments are made in the bank, but the related document is not represented by a line in the Payment Registration window, typically because it is not posted, then you can use a special search function to find the document.

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Figure 7 Payment Registration Ribbon – Search and Find

  • If a payment is late and you want to issue a finance charge to the document, you can choose the Finance Charge Memo button to initiate this process immediately.

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Figure 8 Payment Registration Ribbon – Finance Charge Memo

Change the ‘Amount Received’ or ‘Date Received’

The Payment Registration window shows all open customer ledger entries. In common situations you only have to mark the entries, post and then you are done.

  • The entry can be marked in the Payment Made field.
  • If the date received is different to the date in the Date Received the date can be changed to the correct date.
  • Select the function in the ribbon Post Payments to post the entry or entries. The amount can also be changed in the field Amount Received.
  • The Date Received displays the date that the payment was made in the bank and it is possible to post entries with different dates.
  • The Date Received field in combination with the payment discount date on the document is also used to automatically check whether the customer is eligible or not for an early payment discount.

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Figure 9 Payment Registration Ribbon – Post Payments

Different options to search for a document

  • The FIND function in the Ribbon is used to search for entries in the Payment Registration window. If you are on the column and select FIND, the values for that particular column will be included in the search.
  • It is also possible to select the drill-down button to search in for values in any of the columns within the Payment Registration Window.

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Figure 10 Find in Edit

  • In my example below I will put my find a value of ‘103013’ in the Description column. The cursor will find the first line which contains this value OR part of this value AND the Find in Edit window will display how many results were found. It this case there is only one match.

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Figure 10 Find in Edit

  • Sometimes a customer pays an amount for a sales order which has not been posted. In this case we can use the Search Document function to search for the un-posted document and post it so that it will appear in my Payment Registration window.
  • In the example below, I use the Search Document function to search for document ‘104008’. The Search Result window opens and shows all documents found. In the example below I found an un-posted Sales Order. From here I can directly ‘Navigate’ to the Sales Order and ‘Post’ it. Back on the Payment Registration, I will click ‘Refresh’ and then I will find the Posted Sales Invoice on the bottom of the list.

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Figure 11 Document Search

  • Furthermore we have the option Search Customer which opens the Customer List. From here you can filter on the specific Customer or in case there is no open document, you can mark the Customer and then choose Sales Journal to post the payment directly to the Customer

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Figure 12 Document Search

Lump Payment – cover multiple invoices for one customer with a single payment

  • With the Lump payments we can cover multiple invoices for one customer with one single payment.
  • In the field Payment Registration, mark the invoices and then select the function ‘Post as Lump Payment’. Instead of one payment per document, you will now get one payment for multiple documents.
  • You can now look up the customer ledger entries by selecting Search Customer and you will see that one payment has been created for all four invoices.

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Figure 12 Ribbon – Post as Lump Payment

Finance Charge memos for overdue amounts

  • When an invoice is marked in the Payment Made field, and the date received is after the due date, a message will be shown on the bottom of the page.
  • A Finance Charge Memo can be created directly from the Payment Registration window by selecting the Finance Charge Memo Function.

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Figure 13 Ribbon – Suggest Finance Charge

  • This page is pre-filled with the customer information when we select the Name field. We can now use the ‘Suggest Fin. Charge Memo Lines’ action to generate charge lines for this customer.
  • Back on the Payment Registration window, when selecting the Refresh function, the new Finance Charge Memo will be updated on the bottom of the list.

Handling Payment Discounts

  • When a payment is received, within the payment discount period, the deducted amount will automatically be added and the invoice and the payment will be fully applied and closed after posting the payment.

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Figure 14 Payment Discount

  • When entering a deducted amount after the payment discount period a warning message will be displayed at the bottom of the page. In case the payment is posted, it will be registered as partial payment and the invoice will remain open.

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Figure 15 Payment Discount Warning

  • If you want to accept the late payment discount, you can easily change the payment discount date, either directly in the Payment Registration or in the detail section.

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Figure 16 Detail

  • When changing the date, the warning message disappears and the remaining amount becomes the payment discount. After posting both the invoice and the payment will be fully applied and then closed.

Microsoft Dynamics NAV is a business management solution from Microsoft that is quick to deploy, easy to use, and has the power to support your business ambitions. Please do not hesitate to contact Technology Management for more information.

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