Microsoft D365-Business Central-Financial Management -

Microsoft D365-Business Central-Financial Management

Locus IT ServicesMicrosoft D365-Business Central-Financial Management

Lesson 4: Cash Management – Receivables and Payables Management

Cash Management – Receivables and Payables Management: Cash management in Dynamics 365 Business Central is used to manage a company’s bank accounts. Before you can start processing bank transactions, you should first set up cash management by creating bank accounts and journals NAV-D365 Business Central.

By the end of this module, you will be able to:

  • Create bank accounts in Business Central.
  • Create vendor bank accounts.
  • Enter receivables information for customers.
  • Enter payables information for vendors.

A regular step in any financial rhythm is to reconcile bank accounts, which requires that you apply incoming payments to customer or vendor ledger entries to close sales invoices and purchase credit memos as paid.

While most customers in B2B environments pay some time after delivery, leaving the posted sales invoices open for the Accounts Receivable department to close (apply) when payment is received, some sales invoices can be paid immediately, for example with PayPal. Such invoices are immediately applied as paid when they are posted and, therefore, do not appear as payments to be processes in AR. For more information, see, for example, Invoice Sales.

In Business Central, one of the fastest ways to register payments from the Payment Reconciliation Journal page by importing a bank statement file or feed. The payments are applied to open customer or vendor ledger entries based on data matches between payment text and entry information. You can review and change the matches before you post the journal, and close bank account ledger entries for ledger entries when you post the journal. The bank account is reconciled when all payments are applied.

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