Extended Payment Suggestions
Business Value
The payment suggestion in standard Microsoft Dynamics 365 Business Central creates payments for vendors. Refunds to customers – arising from credit memos or overpayments – and expense reimbursements to employees have to be entered manually. In addition, every setting of the suggestion has to be entered again for each run, which is error-prone for recurring payment runs.
If receivables and payables exist with the same business partner at the same time, netting is common practice so that only the remaining amount is paid. In the standard product this has to be handled entirely manually, including the required declaration of set-off.
The extended payment suggestion in 365 business Banking covers all three account types, stores the settings in templates, and handles customer-vendor netting including the supporting statement.
Feature Description
The Suggest Payments action is available in the Payment Journal. It creates journal lines for customers, vendors and employees in a single run.
The call itself only asks for two values:
- Template Code – the template that provides the default settings of the suggestion.
- Last Due Date – limits the entries taken into account. Leave empty for no limit.
Extended Payment Suggestion Template
All further settings are stored in the Extended Payment Suggestion Template and are therefore reusable:
| Area | Fields |
|---|---|
| Scope | Suggest Customer Payments, Suggest Vendor Payments, Suggest Employee Payments |
| Selection | Last Due Date Formula, Find Payment Discounts, Use Vendor Priority, Available Amount (LCY) |
| Summarization | Summarize per Account, New Document No. per Line |
| Posting | Use Due Date as Posting Date |
| Netting | Apply Customer-Vendor Netting |
| Purpose | Customer Message to Recipient, Vendor Message to Recipient, Employee Message to Recipient |
| Fine-tuning | Customer Ledger Entry Filter, Vendor Ledger Entry Filter, Employee Ledger Entry Filter |
The three Message to Recipient fields are composed from placeholders in curly brackets – just like the posting text of reconciliation rules: {Document No.}, {Account No.}, {Account Name}, {External Document No.}, {Applied Amount}, {Document Type} and {Document Type Short}. If a field is left empty, the document type and external document number are used instead.
Customer-vendor netting
If Apply Customer-Vendor Netting is active, the suggestion checks for every vendor whether the corresponding business partner – linked through the contact business relation – is also kept as a customer with open receivables. The offsettable amount is the smaller of the open receivables and the suggested payable.
The netted receivables and payables are settled through a pair of offsetting journal lines – without a payment through the bank. Only the remaining amount is actually paid.
Each netting run produces a netting statement that itemizes the mutual claims with their ledger entries and netted portions and serves as the declaration of set-off. Use the Print Netting Statement and Send Netting Statement actions in the payment journal to issue it.
Limits of netting
Only entries in local currency are netted. Members of a payment group are excluded from netting, because their entries are settled through the central account of the group.
Good to know
A posted netting statement is kept as the declaration of set-off, even after the underlying journal lines are gone. The Netting Statements list holds all statements.
For more information, see Payment Journal.