import { Callout } from "zudoku/ui/Callout";

# 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](banking-connection.mdx)).
- A **payment method** set up as **Direct Debit** or **SEPA Collective Direct Debit** (see [SEPA Direct Debit](payment-types/direct-debit.mdx)).
- Valid **SEPA direct debit mandates** for the customers.

<Callout type="info" title="When the direct debit functions appear">
The additional fields and actions are only shown when the payment method of the journal is set up as Direct Debit or SEPA Collective Direct Debit.
</Callout>

## 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.

{/* TODO Screenshot: /assets/images/365-business-banking/suggest-direct-debits.en-US.png — Suggest Direct Debits request page */}

### 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.

<Callout type="tip" title="Collective direct debit">
For a SEPA collective direct debit, all lines with the same mandate reference and the same collection date receive a shared [end-to-end reference](features/details/end-to-end-reference-batch-payments.mdx). This makes the collective direct debit – which the bank reports back as a single transaction – unambiguously assignable.
</Callout>

<Callout type="note" title="No file export">
The collection is carried out through the bank connection of 365 business Banking. No SEPA XML file is generated and none has to be submitted to the bank.
</Callout>

## 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](payment-journal.mdx)
- [Bank Account Reconciliation](bank-reconciliation.mdx)
- [SEPA Direct Debit](payment-types/direct-debit.mdx)
- [SEPA Direct Debit in Cash Receipt Journal](features/details/sepa-direct-debit-cash-receipt.mdx)