Copy page

Payments

Cash Receipt Journal

The Cash Receipt Journal is the place in Microsoft Dynamics 365 Business Central where incoming payments are entered and applied to open customer entries. 365 business Banking extends it with SEPA direct debit collection: you collect direct debits where you process incoming payments anyway.

Prerequisites

• A bank account connected through 365 business Banking (see Establish Bank Account Connection).
• A payment method set up as Direct Debit or SEPA Collective Direct Debit (see SEPA Direct Debit).
• Valid SEPA direct debit mandates for the customers.

Setting up lead times

The bank requires a lead time in bank working days before the collection. Define it on the Bank Account card:

1. Set the Base Calendar Code so that bank working days are used. Without a calendar, calendar days apply.
2. Enter CORE Direct Debit Lead Time (Days), First CORE Direct Debit Lead Time (Days) and B2B Direct Debit Lead Time (Days).

In the General Ledger Setup you additionally configure:

• Prenotification Nos., Prenotification Lead Time (Days) and Prenotification Mandatory
• Direct Debit Mandate Validity
• End-to-End Reference Nos.
• Direct Debit Return Invoice Action and Direct Debit Return Fee Action

Step-by-step

Suggesting direct debits

1. Open the Cash Receipt Journal with the direct debit payment method.
2. Choose Suggest Direct Debits.
3. Fill in the options:
   • Last Due Date – latest due date of the entries to be collected.
   • Collection Date – leave empty to derive the date of every line from the due date and the lead time, on a bank working day.
   • Partner Type – Company for B2B direct debit, Person for CORE direct debit, empty for both.
   • Only Invoices With Valid Mandate
   • Summarize per Customer – one line per customer, mandate, collection date and currency.
   • New Document No. per Line
4. Confirm with OK. The journal lines are created.

Reviewing the lines

The following additional fields are available on the lines:

Field	Meaning
Payer Bank Account	The payer's debited account, taken from the mandate
Collection Date	Date the amount is collected from the payer
Message to Recipient	Purpose shown on the payer's account statement
Verification of Payee (VoP) Status	Result of the check on the payer bank account
Payment Status	Status of the line within the collection
Prenotification Sent	Whether the prenotification has been sent

Use the Verification of Payee (VoP) line action to verify the account holder name and IBAN of the payer bank account.

Sending prenotifications

Inform the payers about the amount and collection date before collecting:

1. Choose Print Prenotifications or Send Prenotifications for the entire journal.
2. For a single line, use Print Prenotification or Send Prenotification.

Carrying out and posting the collection

1. Choose Carry Out Direct Debit to collect the direct debits for the lines through the bank.
2. Alternatively, choose Carry Out Direct Debit and Post to post the journal immediately afterwards.
3. When the journal is posted, the incoming payments are posted and the applied customer entries are closed.

Handling returned direct debits

When a returned direct debit appears on the bank statement:

1. Retrieve the bank transactions into a payment reconciliation journal.
2. Open manual application for the line and choose Assign Returned Direct Debit.
3. Select the original direct debit collection.
4. When the journal is posted, the application of that collection is undone, the affected invoices are open again, and the returned amount settles the collection.

Follow-up handling of the invoices and of the return fee depends on the Direct Debit Return Invoice Action and Direct Debit Return Fee Action settings in the General Ledger Setup.

See also

• Payment Journal
• Bank Account Reconciliation
• SEPA Direct Debit
• SEPA Direct Debit in Cash Receipt Journal