Let’s Talk Roles: Accounts Receivable (AR) in Microsoft Dynamics 365 Business Central

AR Business Central

In this post, we’ll focus on Accounts Receivable (AR) and explore all the functionality and automation available to your AR team in Microsoft Dynamics 365 Business Central. This role is particularly special to me because, back when I was introduced to NAV, it was the first area of NAV I was introduced to, and it quickly became my first love in the NAV environment.

When I started with NAV, we had a team handling Accounts Receivable. By the time I left, one person had managed the entire AR process, from billing to cash receipts and everything in between.

The Early Days

In the beginning, our week consisted of Lockbox deposits, manually entering over 200 checks into NAV, running credit cards in an outside system for credit card customers, and manually ensuring that those orders didn’t ship until payment was received.

Three of the team members focused on billing; each day, they would manually review the shipments from the previous day, add freight and surcharges before billing, and send out the invoices by mail, fax, or email. The balance of the day was spent making corrections and corresponding with customers on returns, credits, and price corrections, along with working from the aging report to collect past-due balances.

Embracing Dynamics Communities

After a couple of years, I was introduced to the BC/NAV User Group. This is where I studied, trained, networked, and learned about all the features and functionality available to me in NAV. I then began implementing what I learned in our department and NAV environment.

By 2015, we had upgraded to the 2015 version and quickly began to implement the new automation and functionality available to us, along with learning about the third-party add-ons that would make our lives simpler and work more efficiently. Batch posting, workflow, and automation became our quest.

Today’s Features and Automation

Today, the features and automation available in Business Central continue to grow and expand. Below is a list of many of the features available to your Accounts Receivable Department to help them be more efficient and successful in their roles and responsibilities:

Key Features and Functionality in Business Central

1. Automated Invoicing and Payment Processing: Business Central automates the creation and distribution of invoices, reducing manual effort and minimizing errors. The system can automatically send invoices to customers and follow up with reminders for overdue payments, ensuring timely collections and improving cash flow management.

2. Real-time Insights and Reporting: With Business Central, you can access real-time data and customizable reports that provide insights into your AR performance. You can monitor outstanding invoices, track payment trends, and identify potential issues before they impact your cash flow. 

3. Seamless Integration with Other Modules: Business Central integrates with other modules such as Sales, Inventory, and General Ledger. This integration ensures that all financial data is synchronized, providing a holistic view of your business operations. It also simplifies the reconciliation process and reduces the risk of discrepancies.

4. Enhanced Customer Communication: The system allows you to maintain detailed customer records, including contact information, payment terms, and transaction history. You can easily communicate with customers regarding their accounts, send statements, and resolve disputes efficiently. Improved communication fosters better customer relationships and enhances satisfaction.

5. Credit Management: Business Central includes robust credit management tools that help you assess and manage customer credit risk. You can set credit limits, monitor credit utilization, and receive alerts for potential credit issues. This proactive approach minimizes the risk of bad debts and ensures a healthier AR portfolio.

Automation and New Role Features

1. New Profile: Accounts Receivable Administrator: The Accounts Receivable Administrator role center in Business Central is designed to streamline AR tasks. It provides a centralized hub for managing AR activities, accessing relevant data, and performing daily tasks. The role center includes broad cues that help quickly validate and reconcile AR balances.

2. Cue’s: Cues in Business Central visually represent aggregated business data, such as the number of open sales invoices. They are interactive, allowing users to drill down into data or open related pages. Cues can be customized to display data most relevant to the user’s role.

3. Report Inbox: The Report Inbox in Business Central allows users to access scheduled reports generated by the system. Users can download, share, and open reports in OneDrive directly from the Report Inbox. This feature enhances productivity by centralizing report management.

5. Customer Card: The Customer Card in Business Central is a comprehensive tool for managing customer information and interactions. It includes sections for general information, address and contact details, invoicing, payments, shipping, and statistics. Customer templates can be used to standardize data entry.

6. Customer Templates: Customer templates in Business Central allow you to create predefined sets of information for different types of customers. Using templates saves time and ensures consistency when adding new customers.

7. Payment Terms: Payment terms in Business Central determine how due dates and payment discounts are managed. You can define payment terms using date formulas and assign them to customers and vendors. 

8. Document Sending Profiles: Document Sending Profiles in Business Central allow you to set up preferred methods for sending sales documents to customers. This feature streamlines the process of sending invoices, reminders, and other documents by automating the selection of sending options.

AR Reporting

1. Invoices: Business Central provides tools for creating, posting, and managing sales and purchase invoices. The system supports electronic invoicing and integration with payment services.

2. “New Functionality” Reminders: Reminders in Business Central help you manage overdue payments by sending automated reminders to customers. You can set up reminder terms and levels to customize the frequency and content of reminders.

3. Finance Charge Memos: Finance Charge Memos calculate and apply finance charges to overdue invoices. This helps incentivize timely payments and manage late fees.

4. Customer Statements: Customer Statements summarize a customer’s account, including outstanding invoices, payments, and credits. They are useful for communicating account status to customers.

5. Aged Accounts Receivables: The Aged Accounts Receivables report categorizes customer balances into aging buckets based on document date, due date, or posting date. This report helps you monitor overdue invoices and manage collections.

6. Aged Accounts Receivable Simple: This simplified version of the Aged Accounts Receivables report provides a quick overview of outstanding balances without detailed aging buckets.

7. New Subscription Billing: Business Central supports subscription billing, allowing you to manage recurring invoices and payments for subscription-based services. This feature automates the billing process and ensures accurate invoicing.

Copilot for Finance

Copilot for Finance in Business Central is an AI-driven tool that assists with AR tasks. It can find customer information, display aged balance information, and list outstanding invoices. Copilot for Finance in Outlook allows you to:

  • Access and update the Dispute Status and Promise to Pay date on invoices.
  • Update contact information.
  • Draft email replies with Copilot.
  • Attach statements and invoices directly from Outlook.

This feature enhances productivity by automating routine tasks and providing intelligent insights to support AR management.

Leveraging Other Microsoft Products

Microsoft Dynamics 365 Business Central integrates seamlessly with various other Microsoft products, enhancing the capabilities of your Accounts Receivable department. These products include:

  1. Microsoft Excel: Export data from Business Central to Excel for advanced analysis and reporting. This integration allows you to easily create custom reports and perform detailed data analysis.
  2. Microsoft Outlook: Use Business Central directly within Outlook to manage customer interactions, send invoices, and update AR records. This integration streamlines communication and ensures that all relevant information is easily accessible.
  3. Microsoft Teams: Collaborate with your team using Microsoft Teams, where you can share Business Central data, discuss AR issues, and make real-time decisions. This integration fosters better teamwork and faster problem resolution.
  4. Power BI: Leverage Power BI to create interactive dashboards and visualize your AR data. This integration provides deeper insights into your financial performance and helps you make data-driven decisions.
  5. Power Automate: Use Power Automate to automate repetitive AR tasks. You can create workflows that trigger actions in Business Central based on specific events, such as sending reminders for overdue invoices.
  6. OneDrive for Business: Use OneDrive for Business to store and share documents related to AR processes. This integration ensures that all your documents are securely stored and easily accessible anywhere.

The Importance of Community

The last thing I will share is to take advantage of the BC/NAV User Group and Dynamics Communities. They are not just for the IT Department; they are for everyone. Encourage your staff and team to attend webinars, read articles, and participate in virtual and in-person user groups. Also, get a team to Community Summit every year. One person is not enough — it takes a village to run a successful ERP!

By embracing these resources and leveraging Business Central’s powerful features, your Accounts Receivable team can achieve greater efficiency and success in their roles and responsibilities.

Conclusion

Microsoft Dynamics 365 Business Central for Accounts Receivable offers numerous benefits, including enhanced automation, real-time insights, and improved customer communication. The new role-based features and integration with Power Automate further streamline AR processes, reduce manual effort, and ensure a more efficient and effective financial operation. Embrace the power of Business Central to optimize your accounts receivable management and drive your business forward.


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