I want to show you a simple process in Dynamics 365 business Central for managing accounts receivable. We’ll look at some basic reporting how to enter debit and credit memos and how to publish account statements to customers, accept payments from customers, and then deposit those in the bank so let’s get started.
Aged Accounts Receivable Report
The Aged accounts receivable report is the main report that people use to manage accounts receivable. Let’s run this report and get an idea of what it looks like. Here’s a detailed view; this can also be run in the summary view, but here I see all the invoices that are do me and the age of those invoices. This is a handy report to start your analysis of accounts receivable.
Issuing Credit and Debit Memos
As we work with our customers to resolve accounts receivable issues we may find that we have to issue a credit memo or debit memo it’s easy to do let’s enter one right now I’ll go to sales enter credit memo here’s a new one I’m going to make it for this customer here and what I want to do is I want to key it to a previous invoice to better communicate with my customer so let’s do that I’ll look up posted documents I’ve got quite a few let’s go down to the bottom here’s an invoice that I want to issue a credit to the customer this is not for a return it’s for a price adjustment we’ll reference it here and we’re going to change this to a GL account and look up the allowances account put a quantity of one and the credit amount is going to be two hundred dollars again this is based on a price and error that we made when we ship this to the customer so I’ve got the credit memo completed it’s for 200 dollars I want to apply it to the original invoice so go to apply entries here find that invoice this is the invoice right here I’m going to set the applies to ID okay with that and I’ll post this.
Now let’s take a closer look at this customer this is the customer card right here if I want to I have access to all the transactions for this customer I can also create a statement of account for this customer so let’s do that I’ve got this dialog box and what I’m going to do is create a statement and send it to my customer via email everything’s set up to do that here’s the email that was delivered to my customer it has a nice message in it and I can open up the statement this is a statement that’s created by business Central and sent to the customer via email it’s the standard report it can be modified if you want to this particular version of it has a history here at the top and then the past due balances right here I can also schedule statements to go out on a regular basis to my customer base if I want to do that.
Recording Customer Payments
But let’s take a look at payments an easy way to record customer payments is by using the bank deposit screen here I’ve got one already started I’ve got a couple customers here let’s add a new customer payment and then what I want to do is apply entries when I do that I’m going to look at all the open entries for this particular customer I’m going to select the entries that the customer is paying so let’s say they paid this first one I’ll set the applies to ID here and let’s say they also paid this one down here I’ll set the applies to ID here let’s say they did not pay the entire amount because they feel a refund is due and they only paid twelve hundred dollars we can easily note that right here it’ll keep the remaining 88.80 on account until we resolve that so let’s go ahead and say this is okay for this payment for this customer what we can do here is add a control element into this process and enter the total deposit amount so let’s go ahead and do that once I’m done with that I can go ahead and post this and I’m going to post it to my bank account here and the credits are going to be to these customers for those amounts to the invoices that I specified on the apply to window so let’s go ahead and post that.
This is a simple way to use Dynamics 365 business Central to manage your accounts receivable it allows you to look at all open receivables in detail or summary form you can enter debit and credit memos as you need to you could also send statements to customers one at a time or to your entire customer base you can easily accept customer payments and make deposits to the bank this is an easy process to keep on top of your accounts receivable.