Manage Payables
After you have configured the accounts payable area in Microsoft Dynamics NAV, the first step in managing accounts payable is to record amounts that must be paid. If an order has been created, then you convert the order into an invoice when the goods are received. If no order exists, you can create the invoice manually. You record discounts, shipping charges, and other item charges on the invoice before you post it. If any additional item charges occur, you can post them on a separate invoice and assign them to the item.
Microsoft Dynamics NAV makes it easy to prioritize payments, taking into account penalties for overdue payments and payment discounts for early payments. You can record payments in a general journal and then print checks before the payment journal is posted.
You apply invoices to payments to close them. You can apply a payment to the corresponding invoice when you post the payment, or after you post the payment. The Application Method field on the vendor card determines whether you must make a manual application, or whether it is made automatically. You can always apply transactions manually. However, if the application method for the vendor is Apply to Oldest, and you do not specify a document for the payment to be applied to, the payment will be applied to the oldest open entry for the vendor.
The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.
| To | See |
|---|---|
Create a purchase invoice, either by converting an order into an invoice or by entering the invoice manually, and post the invoice. |
|
Adjust purchase invoices so that they align with the invoices that you receive from a vendor. |
|
Prioritize payments to account for payment discounts and overdue penalties, and post the payments. |
|
Apply payments to invoices. |