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

# 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

1. Choose **Payment Groups** in the search of Microsoft Dynamics 365 Business Central.
2. Use **New** to create a group and assign a **Code** and a **Description**.
3. Choose the **Account Type**:
   - **Customer** – for incoming collective payments.
   - **Vendor** – for outgoing collective payments.
4. In the **Central Account No.** field, select the account that makes or receives the collective payment.
5. Enter the **payment group members** on the lines.

{/* TODO Screenshot: /assets/images/365-business-banking/payment-group-card.en-US.png — Payment group card with central account and members */}

<Callout type="tip" title="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.
</Callout>

<Callout type="note" title="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.
</Callout>

## Applying an incoming collective payment (account type Customer)

1. Retrieve the bank transactions into a **payment reconciliation journal**.
2. 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.
3. 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.
4. 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](features/details/extended-payment-suggestion.mdx) 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.

<Callout type="note" title="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.
</Callout>

## 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.

<Callout type="info" title="Unapplying">
The distribution is carried out through regular customer or vendor applications. The application can therefore be undone through the standard **Unapply Entries** action.
</Callout>

## See also

- [Bank Account Reconciliation](bank-reconciliation.mdx)
- [Payment Journal](payment-journal.mdx)
- [Payment Groups](features/details/payment-groups.mdx)