How to: Reconcile Customer Payments Manually From a List of Unpaid Sales Documents

Article
09/08/2017

When your customers have made payments to your electronic bank account, you must apply each amount paid to the related sales document and then post the payment to update the customer, general ledger, and bank ledger entries.

Note

You can perform the same tasks, including vendor payments, in the Payment Reconciliation Journal window using functions for bank statement import, automatic application, and bank account reconciliation. For more information, see Reconcile Payments Using Automatic Application.

The Payment Registration window is designed to support you in tasks involved in balancing internal accounts by using actual cash figures to make sure that payments are collected efficiently from customers. This payment processing tool enables you to quickly verify and post individual or lump payments, process discounted payments, and find specific unpaid documents for which payment is made.

Payments for different customers that have different payment dates must be posted as individual payments. Payments for the same customer that have the same payment date can be posted as a lump payment. This is useful, for example, when a customer has made a single payment that covers multiple sales invoices.

To set up the payment registration journal

Because you can post different payment types to different balancing accounts, you must select a balancing account in the Payment Registration Setup window before you start processing customer payments. If you always post to the same balancing account, you can set that account as the default and avoid this step every time that you open the Payment Registration window.

Choose the icon, enter Payment Registration Setup, and then choose the related link.

Alternatively, in the Payment Registration window, choose the Setup action.
Fill in the fields in the Payment Registration Setup window. Choose a field to read a short description of the field or link to related information.

To reconcile payments individually

Choose the icon, enter Payment Registration, and then choose the related link.
Select the Payment Made check box on the line that represents the posted document for which a payment has been made.

If the Auto Fill Date Received check box is selected in the Payment Registration Setup window, then the work date is entered in the Date Received field.
In the Date Received field, enter the date when the payment was made. This date may be different from the work date.
In the Amount Received field, enter the amount that has been paid.

For full payments, this is the same as the amount in the Remaining Amount field on the line. For partial payments, this is lower than the amount in the Remaining Amount field on the line.
Repeat steps 2-4 for other lines that represent posted documents for which payments are made.
Choose the Post Payments action.

The payment information is posted for documents represented by lines where the Payment Made check box is selected.

Payments entries are posted to general ledger, bank, and customer accounts. Each payment is applied to the related posted sales document.

To reconcile lump payments

Choose the icon, enter Payment Registration, and then choose the related link.
Select the Payment Made check box on the lines that represent posted documents for the same customer for which a lump payment has been made.

Note

The customer in the Name field must be the same on all lines that will be posted as a lump payment.

If the Auto Fill Date Received check box is selected in the Payment Registration Setup window, then the work date is filled in the Date Received field.
In the Date Received field, enter the date when the payment was made. This date may be different from the work date.

Note

This date must be the same on all lines that will be posted as a lump payment.
In the Amount Received field, enter amounts on multiple lines that sum up to the lump payment amount.

Tip

Try to post as many full payments as possible with the lump amount. Enter amounts that are the same as the amount in the Remaining Amount field on as many lines as possible.
Repeat steps 2-4 for other lines that represent posted documents for the same customer for which a lump payment has been made.
Choose the Post As Lump Payment action. The entered payment information is posted for documents represented by lines where the Payment Made check box is selected.

Payment entries are posted to general ledger, bank, and customer accounts. Each payment is applied to the related posted sales document.

If a payment in the bank is not represented by line in the Payment Registration window, it may be because the related document has not yet been posted. In that case, you can use a search function to quickly find the document and post it to process the payment. For more information, see the "To find a specific sales document that is not fully invoiced" section.

If a payment in the bank is not represented by any document in Dynamics NAV, then you can open a prefilled general journal from the Payment Registration window to post the payment directly to the balancing account without applying the payment to a document. Alternatively, you may want to record the payment in the journal until the origin of the payment has been resolved. For more information, see the "To record or post a payment without a related document" section.

To process customer payments with discounts manually

If you have agreed on a payment discount with your customer, then the payment amounts can be lower than the invoice amounts if payment occurs before the agreed discount date.

The following procedures explains four different ways to post discounted payments in the Payment Registration window.

The payment amount is equal to the remaining discounted amount, and the payment date is before the discount date. You post the payment as is.
The payment amount is equal to the remaining discounted amount, but the payment date is after the discount date. You post the payment as partial. The document remains open to collect/pay the remaining amount. Alternatively, you set the discount date later to allow the payment in full.
The payment amount is lower than the remaining discounted amount. You post the payment as partial. The document remains open to collect/pay the remaining amount.
The payment amount is more than the remaining discounted amount. You post the payments as is. Only the remaining amount is posted. The additional amount is credited to the customer.

To process a payment amount that is equal to the discounted amount and where the payment date is before the discount date

Choose the icon, enter Payment Registration, and then choose the related link.
Enter the payment amount in the Amount Received field. The amount is equal to the amount in the Rem. Amt. after Discount field.

The Payment Made check box is automatically selected, and the Date Received field is filled with the work date.
In the Date Received field, enter the payment date. The date is before the date in the Pmt. Discount Date field.
Verify that the Remaining Amount field contains zero (0).
Choose the Post Payments action to post the full payment to general ledger, bank, and customer accounts.

To process a payment amount that is equal to the discounted amount but where the payment date is after the discount date

Choose the icon, enter Payment Registration, and then choose the related link.
Enter the payment amount in the Amount Received field. The amount is equal to the amount in the Rem. Amt. after Discount field.

The Payment Made check box is automatically selected, and the Date Received field is filled with the work date.
In the Date Received field, enter a payment date that is after the date in the Pmt. Discount Date field. Date fields change to red font, and an error message is shown at the bottom of the window.

Tip

If you want to make an exception and grant the discount even though the payment is late, follow these steps:
Choose the Details action.
In the Payment Registration Details window, in the Pmt. Discount Date field on the Payment Discount FastTab, enter a date that is after the date in the Date Received field in the Payment Registration window.

The error message and the red font disappear, and you can proceed to process the discounted payment.
Verify that the Remaining Amount field contains the amount that remains to pay the full invoice amount.
Choose the Post Payments action to post the partial payment to general ledger, bank, and customer accounts.

The related document remains open.

To process a payment that is lower than the remaining discounted amount

Choose the icon, enter Payment Registration, and then choose the related link.
Enter the payment amount in the Amount Received field. The amount is lower than the amount in the Rem. Amt. after Discount field.

The Payment Made check box is automatically selected, and the Date Received field is filled with the work date.
In the Date Received field, enter the payment date. The date is before the date in the Pmt. Discount Date field.
Verify that the Remaining Amount field contains the amount that remains to pay the discounted amount.
Choose the Post Payments action to post the partial payment to general ledger, bank, and customer accounts.

The related document remains open.

To process a payment that is more than the remaining discounted amount

Choose the icon, enter Payment Registration, and then choose the related link.
Enter the payment amount in the Amount Received field. The amount is more than the amount in the Rem. Amt. after Discount field.

The Payment Made check box is automatically selected, and the Date Received field is filled with the work date.
In the Date Received field, enter the payment date. The date is before the date in the Pmt. Discount Date field.
Verify that the Remaining Amount field contains zero (0).
Choose the Post Payments action to post the full payment to general ledger, bank, and customer accounts.

The related document is closed, and the customer is credited the excess payment amount.

To find a specific sales document that is not fully invoiced

The Payment Registration window supports you in tasks needed to balance internal accounts with actual cash figures to ensure effective collection from customers. It shows outstanding incoming payments as lines that represent sales documents where an amount is due for payment.

Typically, when a payment has been made, recorded in the bank or otherwise, the related sales or purchase document is represented as a line in the Payment Registration window because the document in question is waiting for the payment to be posted against the outstanding amount. However, sometimes a payment that has been made is not represented by a line in the Payment Registration window, typically because the document in question has not been fully invoice posted.

In the Document Search window, you can search among documents that are not fully invoiced. You can search based on one or more of the following criteria:

Document number
Amount or amount range

The following procedure explains how to find a specific document by using both search criteria.

Choose the icon, enter Payment Registration, and then choose the related link.
With the pointer on any line, Choose the Search Documents action.
In the Document Search window, enter a search value in the Document No. field.

Note

The value that you enter in this field is enclosed in hidden wildcard characters. This means that the function searches for all document numbers that contain the entered value.
In the Amount field, enter the specific amount that exists on the document that you want to find.
In the Amount Tolerance % field, enter a percentage value to define the range of amounts that you want to search to find the open document.

If you enter 10, then the function will search for amounts in a range between ten percent lower and ten percent higher than the value in the Amount field.
Choose the Search action.

The Search function searches among documents that are not fully invoiced based on the specified criteria.

If one or more documents match the criteria, then the Document Search Result window opens to display lines that represent those documents. Each line contains a document number, description, and amount so that you can easily find a specific document, for example based on information on your bank statement.

If a payment in the bank is not represented by any document Dynamics NAV, then you can open a prefilled general journal line from the Payment Registration window to post the payment directly to the balancing account without applying the payment to a document. Alternatively, you may want to record the payment in the journal until the origin of the payment has been clarified.

Choose the icon, enter Payment Registration, and then choose the related link.

Proceed to record an undocumented payment.

Choose the General Journal action.

The General Journal window opens with one line prefilled with the balancing account of the journal batch that is set up in the Payment Registration Setup window.
Fill in the remaining fields on the general journal line, such as the amount and the customer number or other information from the bank statement. For more information, see How to: Post Transactions Directly to the General Ledger.

You can either post the journal line to update the total on the balancing account. Alternatively, you can leave the journal line unposted, and perhaps append it with a note that the payment needs more analysis.

If you leave the journal line unposted, it will add to the value in the Unposted Balance field at the bottom of the Payment Registration window.

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