Posting Customer Deposits in Business Central

In his latest how-to video, UG Expert Dave Wiser reviews four ways to post customer deposits in Dynamics 365 Business Central.

This episode is sponsored by Community Summit North America, the largest independent gathering of the Microsoft Business Applications ecosystem, taking place Oct. 13-17, 2024, in San Antonio, Texas. Register today to connect with thousands of users across the Microsoft business applications ecosystem at the for user, by user event.

Key Takeaways

• Overview: This video discusses four methods to register and post customer payments in Business Central, emphasizing the importance of choosing the right method based on individual organizational needs and the ability to integrate with bank files.
• Cash receipts journal: Dave explains one process of registering customer payments in Business Central, starting with the long-standing cash receipts journal method, detailing the entry fields, and highlighting the accounting principle of debiting the bank and crediting the customer or accounts receivable.
• Applying payments: Dave provides a step-by-step guide on crediting accounts receivable and debiting the bank account when posting customer payments in Business Central, and demonstrates how to apply payments directly within the journal to one or multiple invoices.
• Bank deposits: The second method for registering customer payments in Business Central is through bank deposits, which involves creating a new deposit, entering the amount, and applying it to customer accounts. This method allows for batch processing of checks and requires the total deposit to match the sum of individual customer deposits. Unlike the Cash receipts journal which automatically posts payments, this method requires manual posting of the application, emphasizing the need to both set the applies-to and post the application due to the absence of an additional posting routine.
• Register Customer Payments: With this feature, all open receivables are displayed in a journal. Dave explains how to filter by source number (customer number), select payments, and post them against invoices, with a focus on the importance of matching the payment amount to the invoice amount.
• Payment reconciliation: This method is more complex and allows for the import of bank statements or transactions, with a detailed guide to be covered in a separate video. The “Payment Reconciliation Journal” in Business Central offers an “Apply Automatically” feature that matches payments to invoices based on source file information, providing a match confidence level. If no open invoices match the payment amount, manual application is required, allowing users to select specific payments to apply to entries. When applying payments, if the “Apply Automatically” option is used without matching invoice information in the source file, the system cannot apply the payment, resulting in a match confidence of none. In such cases, manual application is necessary.