How to Process AP Payments in Microsoft Dynamics 365 Business Central – Demo

How to Process AP Payments in Microsoft Dynamics 365 Business Central – Demo

I want to show you how easy it is to process accounts payable invoices and payments in Business Central. We’re going to take a look at:

  1. Vendors Accounts Payable
  2. Invoice entry
  3. Accounts Payable Agings
  4. Payments (ACH and Checks payments)

So let’s get started.

The first thing I want to look at is vendors. This is my vendor list I have in Business Central. Let’s take a look at this vendor right here. This is the basic vendor master file. I have information about each vendor and specific file here are quick tabs I can open those, close them. I can also expand them or show less. These are all the fields that I’ll need to process payments and invoices for this particular vendor we scroll down here a little bit I also have information about payments. You can see that I’ve got payment terms. I’ve also specified a user-defined code to indicate that I’m going to pay this vendor via ACH.

Let’s take a quick look at the bank setup. So for this particular vendor I can look at the bank accounts I have set up for them. I’ve got this bank account here and all I’m doing here is showing the bank account number and the routing number that will be used when ACH payment is made for this particular vendor. I also specify that this account will be used to pay this vendor when I make an electronic payment. These are some accounts payable invoice that I’ve already entered.

Let’s take a look at this one here. This is a basic transaction screen in Business Central. I’ve got header information in this case it’s a specific vendor. Also I’ve got a fact box over here on the right that gives me more information about the particular vendor. I can drill down and find more information right from this invoice entry form and below the header information. I’ve got line information about specifically what the invoice is for here. I’ve got this invoice to purchase a fixed asset if I scroll down to another line here you can see that I’ve got a number of different types of options i can use so GL accounts I can specify just a miscellaneous account or an account from my general ledger to which I want. This invoice charged – I can also select an item which would be an inventory item so if I lost flexibility just within this one screen so I’m going to go ahead and post this.

Let’s take a look at the Aged Payables report. Go up to inquiry here these are my search criteria click on the age accounts payable this is a standard report i can show the detail here. Let’s take a look at it here’s a detailed age accounts payable report this shows all the invoices I owe vendors from my system. See that there I can easily print this out I can also schedule this to run on a regular basis it will show up in my role center.

Let’s take a look at how to make payments from accounts payable to do that I’m going to create a payments journal and then create. Two I’m going to create a payment journal for my check payment. So let’s do that here. I’m going to use this journal because it’s going to affect the checking account in my system and it comes up with this line and there’s a couple of ways to prepare this. I can prepare this automatically by going to prepare and suggest vendor payments or I can just do one at a time.

So let’s just do this one at a time because I want to look at a specific vendor so I’m going to select this vendor and I’m going to scroll over here and see the method to which I’m going to pay them. It’s going to be a check payment so if I go over here to bank payment type. Scroll down and hit computer checks. Now I’m going to make this payment to this vendor I’ve not specified the amount but that’s easy to do. All I’m going to do is select one or more invoices that align with this particular payment. So let’s go to process apply entries. This will show me all the open entries in my system for this particular vendor. Let’s just pay this first one here. Go to process, set the applies to ID, hit ok. Now it’s applied that invoice to this payment it’s also updated the payment amount so I’m ready to go. I could add additional payments to this if I wanted to to different vendors. I’m just going to go ahead and print this check. Here’s a view of the check that will be printed to my printer. It has a micro encoding right in this format so I can print this to blank check stock once. I’ve printed those checks I can post this journal and I’l be done. Now i want to go back and make another payment to an ACH vendor, so i’m going to use the same journal. I’m going to open that up I’m going to make a payment to this vendor down here. It’s selecting this account by default and scroll over here. I’m going to use this payment type it’s going to be electronic payment type. So I selected that and now let’s assign the invoices to this payment. So again, I can go up to process apply entries. I can select one or more invoices. I want to pay in this payment, I’m going to select these three. I’m going to set the applies to ID, hit ok and then what I want to do is I want to send a remitt’s advice out to the vendor to tell them what I’m going to be paying them for. So let’s do that. I can easily send the payment advice directly from the payment journal so go to bank, export, it brings up this dialog box and I want to send the women’s advice via email. So I’ll just hit ok it’s going to use the email address for that particular vendor and send them the payment advice.

Once I’ve done that, what I want to do is generate the EFT file. It’s easy to do I’ll go up to search here put in my search criteria and here I can see the payments that are ready to be turned into an EFT file. I got one payment to this account. This is the vendor account all you need to do then is generate the EFT file. Let’s go ahead and do that. This is the EFT file that was generated by Business Central based on the criteria set up for this particular bank and for that vendor’s bank account you can see the standard format here. So typically what people would do is if they take this file and they send it to their bank to be processed through the ACH system and then when I’m done generating the EFT file I can just post this and we’re done.

Let’s take a look at the ribbon’s advice that was sent out to the vendor here. I’ve got that email came out to a particular vendor this is a standard message I’ve got an attachment of that device let’s take a look at that.This is the standard remittance advice that comes with Business Central.

So this is a quick process to show you the invoice entry for accounts payable. Look at the accounts payable aging and then process a payment both the ACH and the check payments.

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