The example
The steps below use a sample distributor, Lone Star Industrial Supply. Your customers, items and numbers will differ; the page and the fields won’t.
Mesquite Concrete Products (customer 100420) paid by ACH this morning.
| Amount | $255.00 |
|---|---|
| Remittance says | Paying invoice 3899261 |
Record it in the Cash Receipt Journal and apply it to that invoice, so their account shows it paid.
Step by step in Cash Receipt Journals
- 1.
Search for Cash Receipt Journals with the magnifying glass at the top, and open it.
- 2.
On the first line, set Document Type to Payment.
- 3.
Set Account Type to Customer.
A new line starts as G/L Account. A customer number typed there is rejected, because BC looks for it in the chart of accounts.
- 4.
Type 100420 in Account No. and press Tab. Description fills in with their name.
- 5.
Choose Apply Entries... on the action bar. Their open invoices appear.
- 6.
Click the row for invoice 3899261, then choose Set Applies-to ID. Amount to Apply shows $255.00.
The remittance says which invoice they paid. Applying it to the oldest one instead is the most common cash posting mistake.
- 7.
Choose OK. The line's Amount fills in as a negative number: a payment is a credit to the customer.
- 8.
Choose Post on the action bar.
- 9.
BC asks whether to post the journal lines. Choose Yes.
Mistakes that cost money
These are the checks Simetta’s scored test makes on this task, and what each mistake costs a distributor when it happens for real.
Payment not posted
The money is in the bank but the customer still shows as owing it. Collections calls them about an invoice they paid, and their credit can hold new orders.
Payment applied to the wrong invoice
The invoice the customer paid stays open and ages, while another is marked paid. Their remittance won't match your statement and someone has to untangle it by phone.
Wrong amount applied
The deposit won't balance to the bank, and invoices show paid or unpaid by the wrong amount until month-end reconciliation finds it.
Simetta is an independent training product. Microsoft, Dynamics 365 and Business Central are trademarks of Microsoft Corporation.