Payment Registration

What are the benefits of using Payment Registration?

Simplicity:

  • All processes are brought together on one page to efficiently handle registration of incoming documents.
  • Ability to accommodate various ways of doing payment registration.

Productivity:

  • Easy overview of open entries.
  • Easy sorting and filtering across open entries.
  • Less data entry.

Ease of Use:

  • In common scenarios, the user only has to mark entries and post, and then is done.
  • Totals to show that all registrations are made.
  • Users can define payment registration setup according to responsibilities and processes.

What do we see in Payment Registration?

  • All outstanding payments for all customers.
  • This is everything that customers need to pay.
  • You can also see positive as well as negative amounts.
  • Also, credit memos are included here.

What are the useful features?

  • You can easily search for customers using the Search Customers action.
  • You can easily filter on the certain customer. Right-click on a customer and click Filter to This Value (Att+f3).
  • You can sort on specific columns by clicking on the column.
  • You can also Search Documents based on different filters.

Setup

Go to Departments/Financial Management/Cash Management.

Open Payment Registration. If you are opening it for the first time, the system will populate the Payment Registration Setup page.


If not already specified, you will have to specify the journal template and batch you want to use for the payment registration and also the balancing account type, for example in which bank account would you like to balance the incoming payments? You can choose to use the account as default and also if you want the date received to be filled automatically.


So once this setup is done, we are already up and running and we can start using the payment registration function.

Post Payments

All we need to do is to go to specific line, for example in this case we select customer Selangorian Ltd. (Invoice 103002).

Suppose that the customer has already paid the invoice. So all we need to do is select the Payment Made checkbox.

You will notice that the system automatically fills in the Date Received, based on the Work Date and also the Amount Received is entered.


Post Lump Payments

Suppose multiple documents have been paid by a customer; that’s what we call lump payment.

In the following example we can see couple of documents from John Haddock Insurance Co., so we select the relevant documents that the customer paid.

Now instead of using Post Payments action, we can now use Post as Lump Payment action.

NOTE: Once the full payment has been posted, the relevant lines are removed from the Payment Registration window.


Result:

Go to customers.

Here we select customer John Haddock Insurance Co. (30000), for which we had posted the lump payment and open the Customer Ledger Entries.

Here you can see the payment line, no remaining amount anymore and in the fact box you can see that there are two applied entries.

When you check the applied entries, you can see the two invoices that we have posted to (remember during the lump payment the two invoices that we had selected). Basically, that how the payments have been posted.

Customer Ledger Entries


Applied Entries


Search Customers and Documents

It could be interesting to search for customers using the Search Customers action. So we can search for customer 10000 (The Cannon Group PLC) for example and go to the ledger entries to look for detailed information.


Once that we decide that this is the customer that we would like to use in the Payment Registration, you can also choose to start filtering on the customers.


You can also perform Sorting by clicking on the columns. For example, sort the records in the Payment Registration based on Due Date. By clicking on the column you can sort the records in ascending or descending order based on the column value (note the arrow key beside the column name when you sort).


You can Search Documents and apply various filters.


Let us enter a document number 101022 (sales order number). Let’s say, this is the reference that we see on the bank statement, that is provided by the customer.

Click Search and now we see that there indeed is a sales order.


Click Show to open the sale order. If we check the order, we see that there is no shipment or invoice. But let’s say based on an agreement the customer has paid in advance on this sales order.

Post Payments Manually Without a related Document

So let’s go back to payment registration window and click General Journal. This will allow us to directly enter advance that we received from the customer. So in this example, we received the Payment from Customer MEMA Ljubljana d.o.o. (38128456) for -1200/-.


We can now simply post the payment. This is now added as an open payment in the payment registration overview.

Create a Finance Charge Memo from the Payment Registration Page

If we sort on the Due Date, we can see that some invoices are overdue.

We can select the invoice, and now we can see that the payment is overdue and you can calculate interests.


So before posting the payment we can let the system create the Finance Charge Memo. So maybe the customer paid quiet late and based on the general conditions we will charge interest.

Click on Finance Charge Memo. Fill in the customer details, click Suggest Fin. Charge memo Lines. This will create the lines showing the amount (interest) the customer need to pay. Click Issue and Ok.


Now you can post the payment on the payment registration as the customer has paid.

As a result, you will see that a line has been added, because now a Finance Charge Memo is also due by the customer. So they have to pay the interest.

Handling Incoming and Outgoing Payments

By default, Cash Receipt Journals are used to post incoming payments from customers and Payment Journals are used to post outgoing payments to vendors.

Working with Cash Receipt Journals

  • Open the Cash Receipt Journals. Here you can see various journals created with balancing accounts.


  • Select one (BANK in this example) and Edit Journal. Here you can simply enter the payment, for example in this case you have received a bank statement on which you see that a customer has paid an invoice. Fill in the following details:
    • Posting Date
    • Document Type (which is Payment)
    • Document No.
    • Account Type (which is Customer)
    • Account No. (which is a Customer No.)


  • Click Apply Entries. The concept here is to link the payment entry to one of more open customer entries. When you click on the Apply Entries, the system will list down all the open entries for the customer. You can then make an application.


  • You can now make an application, for example, you can specify that the customer here paid the invoice number 00-11 and then click Set Applies-to ID action. Note that system will enter the Balance.


  • You can also change the Amount to Apply, which will be reflected in the Balance. So let us say in this case the customer paid an advance of 25,000. Click Ok.


  • You will see that the Amount is applied and now you can post the cash receipt journal.


What is the result?

The payment will create ledger entries. Open the Customer Ledger Entries (for which the cash receipt journal was posted) and note the following result:

  • Here you can see the payment of 25,000. The Remaining Amount depicts if the ledger entry is closed or not. In this case the remaining amount is 0.00, which means that it not open anymore. The Open field is also not selected and the entry is closed.
  • However, as you just saw that the customer has paid an advance to a specific invoice, which you can see here. So this was an invoice of 185,039.38 (Amount field) and based on the advanced payment of 25,000 (see point 1), there is a remaining amount of 160,039.38(Remaining Amount field). This of course means that the invoice is not closed completely. The Open field is still selected.

It is interesting to see how the system processes these entries. You can say that Ok, the previous remaining amount is REPLACED by the new one, but what you will see that the system will NEVER replace, it will just add entries. You can see the details in the Detailed Customer Ledger Entry. This is explained in the following picture:


  • A Customer can have multiple Customer Ledger Entries.
  • Each Customer Ledger Entry can have one or more Detailed Customer Ledger Entries. So you can see the detailed customer ledger entry as the history of the customer ledger entry.

Working with Payment Journals

  • If we have paid a vendor, we can open the payment journal and make the payment.
  • Fill in the details in the payment journal such as:
    • Posting Date
    • Document Type (which is Payment)
    • Document No.
    • Account Type (which is Vendor)
    • Account No. (which is Vendor No.)


  • Click Apply Entries. You can apply the payment to the invoices that you have paid, for example invoice 200 in this case, by using Set Applies-to ID action.


  • The system will calculate the balance. You can click OK. You will see that the amount is now added in the journal line.


  • You can go ahead and post the payment journal.

What is the result?

You can check the result in the Vendor Ledger Entries. Also you can use the Applied Entries action to see on what documents the payment was applied to.

Reversals & Corrections in NAV

In Microsoft Dynamics NAV there are two ways of performing reversals & corrections:

  • When an incorrect General Journal is posted, the posted ledger entries can be reversed in the corresponding registers.
  • Incorrect entries can be corrected by posting one or more corrective entries using the General Journal.

Reversal Using Registers

Open G/L Registers (Departments/Financial Management/General Ledger/History/G/L Registers).

Select a specific register entry and click Reverse Register action. The system will suggest all the lines that were initially posted in the register and you can reverse them by selecting and using Reverse action.

NOTE: You have to reverse exactly the SAME what was initially posted. For example, you cannot change the posting date

Once you have used the Reverse action, there will be a reversal entry created in the G/L Register.

Now let us try to perform reversal for an entry that was created from a document (entry 134 in this example). You will encounter an error, but why??

You can only use the Reverse Register action on the entries that are the result of a posted journal. In the above example I am trying to use the action based on the entries which are coming from a document and that is not possible. So this is something that you need to take into account when you are using the Reverse Register action.

Reversal Using Correction Field

You can, of course, enter corrections manually in General Journals. So if you have posted wrong entries, you can enter identically the same entries (same account, same accounts, etc.), but use the Correction field.

Now, you may not be able to simply display this field by using Choose Columns. However, it is available in the Gen. Journal Line (81) table. You might have to add that field in the General Journal (39) page using development environment, via object designer.

The Correction field is a Boolean field, which means that once added to the page, you can simply select or clear the field based on the fact if you want to post a transaction.

Basically what you will see is that if you use the Correction field, the system will post the opposite of the original posting. So, for example, in an original posting you will see that the positive (+) amount are posted as debit and Negative (-) amounts are posted as credit. However, if you select Correction field, the system will post Negative amounts (-) as debit and Positive amounts (+) as credit.