Accounts Receivable

The receivables subledger in Microsoft Dynamics 365 Business Central is also the customer master in sales. In addition to customers, there are further receivable accounts for the sale of services that are not goods. The integration of receivables into the general ledger (trade receivables) is carried out via posting groups that can be defined freely.

Customer posting groups

Analogous to the vendor posting group, the customer posting group links customers with receivables, cash discount, invoice, invoice rounding, and application rounding accounts as well as interest and fee accounts. The structure of the customer posting groups must be based on the structure of the respective balance sheet accounts in order to control them correctly through the account cards.

Customer invoice processing

Accounts receivable is largely handled automatically through processes in the project (sales) and in payment management. Nevertheless, manual postings are possible if, for example, reclassifications or write-offs are required. In addition, invoices or credit memos can also be entered, printed, and posted directly in accounts receivable. These documents are required, for example, for debit notes to third parties or the earmarked recharge of costs to affiliated companies.

Meta process CIN - Customer invoice processing

In this process, the invoice or credit note is created based on a delivery or return, or as a manual process. The corresponding invoicing transaction completes the previously started sales process and transfers the resulting data to financial accounting or accounts receivable.

CIN-0010 Create invoice header

The invoice header is created. When the customer is entered, the payment conditions are taken from the customer master.

CIN-0020 Add invoice lines

The invoice lines are added either manually or through a function for retrieving delivery lines/return lines. In addition to items, invoice lines can also refer to general ledger accounts, resources, as well as charges and discounts. Depending on the business transaction, this can be a pure financial accounting invoice (general ledger account), billing for services (resource), or ancillary costs/discounts (item charges/discounts).

CIN-0030 Start approval process

The invoice is forwarded to the decision-maker for approval.

CIN-0040 Check and release invoice

The invoice is checked for correctness and released.

CIN-0050 Post invoice/hand over to customer

The invoice is posted and sent to the customer in paper form or as a PDF in an email. Depending on the customer, transmission of an EDI message in the form of an INVOIC is also possible.

Invoice printing with QR code for payments in Europe

The European Payment Council coordinates the standardization of QR codes on printed invoices. Scanning the QR code prefills SEPA transfers and thus simplifies the payment process.

Dunning

One component of accounts receivable is dunning. Control is handled by the dunning methods that can be assigned to a customer. The dunning methods contain the possible dunning levels. For each dunning level, an individual text can be provided for document printing. For each dunning method it can be determined whether the incurred fees should be posted automatically. If activated, an open entry is created in the amount of the incurred fee.

The following information can be selected:

• Maximum number of dunning levels
• Due date per dunning level
• Fees
• Interest
• Introductory and closing text for documents
• Currency separation

Meta process COL - Dunning

Based on the due dates of open customer ledger entries/outgoing invoices, dunning runs can be created and registered. In addition to the open entries, the system automatically includes dunning costs (fees and interest). Automated dunning is possible through the corresponding configuration. Dunning runs can be canceled (resetting the dunning level).

COL-0010 Create dunning proposal

The dunning proposal is created. The dunning includes due open entries, dunning fees, and interest.

COL-0020 Edit dunning proposal

The dunning proposal can be supplemented or entries can be edited, for example by reducing the dunning fee.

COL-0030 Register and send dunning proposal

The dunning proposal is registered, which creates the dunning letter and sends it by email or prints it. Open customer ledger entries (fees, interest) with due dates are created from the dunning entries. The existing entries receive a new due date.

Credit rating

Credit insurance management

Prepayment

Prepayment can be carried out in the standard system as a process instance of customer invoice processing.

CIN-PPY Customer invoice processing for prepayment

The process describes the creation of prepayment invoices based on sales orders. Prepayment conditions can be stored for customers and applied during the processing of sales orders. Prepayment invoices are created from the sales order before the actual shipment of goods by means of a function. No manual processing takes place. They are created and posted automatically. After delivery of the goods and creation of the actual goods invoice, the prepayment amount is deducted from it on the basis of a general ledger account line so that only the remaining amount remains in the goods invoice.

Reporting

VAT ID check

Within Business Central, the VAT IDs of customers can be checked for correctness.

Print reports for accounts receivable

The following reports must be set up and, if necessary, adapted as part of the project