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

# Set up journal batches for banking

In 365 business Banking, the payment method code and balancing account of a journal batch determine which payments a journal carries out.

365 business Banking carries out credit transfers from a **payment journal** and direct debits from a **cash receipt journal**. The **journal batch** determines which bank account pays and which payment method is carried out: the balancing account is the bank account, and the **Payment Method Code** determines the payment method. A journal batch therefore carries out exactly one payment method from exactly one bank account. For SEPA credit transfers and SEPA instant credit transfers, you create two batches.

## Standard functionality in Business Central

Journal batches split a journal into separate batches, each with its own defaults such as balancing account and number series. For more information, see [Work with general journals](https://learn.microsoft.com/en-us/dynamics365/business-central/ui-work-general-journals) on Microsoft Learn.

## What 365 business Banking adds

- the **Payment Method Code** field on the journal batch (only for journal templates of type Payments and Cash Receipts),
- the amounts **Total Amount (LCY)**, **Line Amount (LCY) Filter** and **Line Amount Exceeded** for approval workflows,
- checks as soon as the balancing account is a bank account connected through 365 business Banking.

## Step by step

1. In the role center, open **Banking** > **Payment Journals** or **Cash Receipt Journals**. The journal batches open.
2. Create a journal batch or choose an existing one.
3. Set **Bal. Account Type** to *Bank Account* and **Bal. Account No.** to the connected bank account.
4. In the **Payment Method Code** field, choose a payment method with a matching **Payment Method** (banking payment method):

| Journal | Allowed payment methods |
|---|---|
| payment journal | *SEPA Credit Transfer*, *SEPA Instant Credit Transfer*, *SEPA Collective Credit Transfer*, *Euro Urgent Credit Transfer* |
| cash receipt journal | *Direct Debit*, *SEPA Collective Direct Debit*, *Payment Service* |

The banking payment method is set on the payment method, see [Payment methods](payment-method-setup.md). Whether the bank account can carry it out depends on the bank, see [Bank account capabilities](../bank-accounts/capabilities.mdx).

## What changes on the batch once the bank account is connected

- **Payment Method Code** becomes mandatory and is only editable in this case.
- The standard field **Allow Payment Export** is switched off and locked: The payment is carried out by 365 business Banking and not by the standard payment export.
- New journal lines take over the payment method code. A line with a different payment method is rejected.
- Suggestions such as **Suggest Payments** (extended payment suggestion) only take entries with a blank or identical payment method code, see [Which entries are suggested](../bank-payment/payment-suggestion/entry-selection.mdx).

## Amounts for approvals

For approval workflows on journal batches, 365 business Banking provides three fields you use in the workflow's filter details:

| Field | Purpose |
|---|---|
| **Total Amount (LCY)** | total of all lines in the journal in local currency, for approval from a total amount |
| **Line Amount (LCY) Filter** | the threshold for a single line |
| **Line Amount Exceeded** | specifies whether the journal contains a line whose amount (LCY) meets the filter in **Line Amount (LCY) Filter**, for example `>10000` |

The setup is described in [Approvals](../approval.mdx).

## Troubleshooting

| Message | Cause and remedy |
|---|---|
| "You cannot set Payment Method for this Gen. Journal Batch. …" | The journal batch belongs to a template that is neither Payments nor Cash Receipts. |
| The payment method is rejected with a field error on **Payment Method** | The banking payment method does not fit the journal, for example a direct debit in the payment journal. |
| "You cannot set Payment Method … for this Gen. Journal Line. …" | The line's payment method differs from the journal batch's **Payment Method Code**. Use a separate batch for another payment method. |
| "We're sorry, but payment method … is not supported by bank account …." | The bank account cannot carry out the batch's payment method, see [Bank account capabilities](../bank-accounts/capabilities.mdx). |

## See also

- [Payment methods](payment-method-setup.md)
- [Payment journal](../payment-journal.mdx)
- [SEPA direct debit in the cash receipt journal](../cash-receipt-journal.mdx)
- [Approvals](../approval.mdx)