Employee payments with the extended payment suggestion
How to reimburse employee expenses in 365 business Banking with the extended payment suggestion, and how this differs from vendor payments.
Amounts you owe employees, such as travel costs, expenses or advances, are recorded in Business Central as open employee ledger entries. The extended payment suggestion pays these entries in the same run as your vendors, from the same bank account and with the same authorization.
Standard functionality in Business Central
In the standard product, you record expenses through a journal on the employee account and pay them in the payment journal, optionally with Suggest Employee Payments. Payment is made to the IBAN on the employee card. See Microsoft Learn: Record and reimburse employee expenses.
What 365 business Banking adds
- Employees, vendors and customers in one run and with one template.
- A separate Employee Message to Recipient with placeholders.
- The transfer to the bank with Carry Out Payment, via PSD2/XS2A, EBICS or as a file.
Set up
- On the Employee Card, enter the IBAN and, if needed, the SWIFT Code. Payment is made to these bank details; the recipient name is the employee's full name.
- In the extended payment suggestion template, turn on Suggest Employee Payments, in a separate template or together with vendors.
- If needed, define an Employee Message to Recipient, for example
Expense reimbursement {Document No.}. See Message to recipient. - Use the template's Employee Ledger Entry Filter or the employee ledger entry tab on the request page to narrow down which entries are paid.
Differences from vendors
| Vendors | Employees | |
|---|---|---|
| Selection by Last Due Date | yes | no; all open employee ledger entries are included |
| On Hold is respected | yes | not applicable (employee ledger entries have no on hold) |
| Blocked ones are skipped | yes (Blocked, privacy block) | yes (privacy block) |
| Different payment method is skipped | yes | yes |
| Payment discount | with Find Payment Discounts | no |
| Vendor priority | yes | no; ranked like a vendor without a priority |
| Bank details | vendor bank account (preferred or only one) | IBAN and SWIFT code on the employee card |
{External Document No.} placeholder | yes | no |
| Verification of Payee (VoP) | on the vendor bank account | on the employee card |
| Remittance advice | print and send | print and send (to the company email, otherwise the private email) |
Employees are selected without a due date because employee ledger entries usually do not have one: a recorded expense is to be reimbursed immediately.
Verification of Payee on employee lines
Verification of Payee also applies to employees. It checks the IBAN and full name on the employee card, through the Verification of Payee (VoP) action on the employee card or in the journal, which also checks employee lines. The result is shown in the VoP Status field on the employee card; changing the IBAN, SWIFT code or name resets it. As for vendors, Carry Out Payment only asks if the result is not 🟢 or ◯. See Bank accounts of customers, vendors and employees.
You print a remittance advice for an employee or send it by email to the company email on the employee card. If no company email is set, it is sent to the private email. See Print and send remittance advice.