Payment Groups
In associations, branch networks, franchise systems and group structures, one central account settles the open entries of several members with a single collective payment. In standard Microsoft Dynamics 365 Business Central, however, a payment can only be applied to entries of a single account – collective payments therefore had to be split manually.
With payment groups in 365 business Banking, the collective payment is posted to the central account and distributed automatically to the members' entries within the same posting.
Setting up a payment group
- Choose Payment Groups in the search of Microsoft Dynamics 365 Business Central.
- Use New to create a group and assign a Code and a Description.
- Choose the Account Type:
- Customer – for incoming collective payments.
- Vendor – for outgoing collective payments.
- In the Central Account No. field, select the account that makes or receives the collective payment.
- Enter the payment group members on the lines.
The central account is not a member
The central account is not entered as a member. Its own entries continue to be applied directly through the standard and are not processed through the distribution.
Changing the account type later
The Account Type can no longer be changed once the group has members. An account also cannot be the central account of one group and a member of another at the same time.
Applying an incoming collective payment (account type Customer)
- Retrieve the bank transactions into a payment reconciliation journal.
- Choose Apply Automatically. If the purpose text of a line references open invoices of group members, the line is applied on-account to the central account and the referenced member invoices are earmarked for application.
- Alternatively, choose Apply Manually. On the Payment Application page the open invoices of the group members are offered as additional proposal lines; the Pmt. Grp. Account No. field shows the group reference. You can select invoices of several members on the same line.
- Post the reconciliation. The payment is first posted on-account to the central account and then distributed to the member invoices and applied within the same transaction.
Outgoing collective payment (account type Vendor)
The extended payment suggestion creates a payment line against the central account whose applies-to ID earmarks the entries of the members. When the payment journal is posted, the collective payment is distributed to the members within the same transaction and their entries are applied.
Netting
Members of a payment group are excluded from the customer-vendor netting of the extended payment suggestion, because their entries are settled through the central account.
Reviewing the group on the account
The Customer and Vendor cards offer:
- the Payment Group action, which opens the group the account belongs to, either as the central account or as a member, and
- the Payment Group FactBox with the group code and name.
Both only appear when the account actually belongs to a payment group.
On the payment group card, a FactBox shows the open invoices and credit memos of the group – across the central account and the members – with a drill-down into the respective entries.
Unapplying
The distribution is carried out through regular customer or vendor applications. The application can therefore be undone through the standard Unapply Entries action.