Record Payments and Refunds in the Payment Journal
On the Payment Journal page, you record payments that you make to suppliers and refunds that you make to customers. When you post a payment journal line, the paid amount is recorded on the specified system bank account. You must then take steps to perform the actual money transfer from the related bank account.
The payment journal is a general journal that is optimised for making payments. You can quickly add lines manually, you can let Business Central suggest supplier payments, and you can apply the payment to posted documents. Even though you are making payments, you enter a positive amount in the Document Amount field. Depending on the document type for the journal line, this amount is then converted to a negative amount in the underlying transactions. This way, it's faster for you to add journal lines manually. If you prefer to enter negative amounts, you can personalise the payment journal to show the Amount field instead.
Applying payments to invoices or credit memos
If you fill in the Applies-to Doc. No. field with the invoice or credit memo that must be paid or refunded, then the document in question is set to paid when you post the journal. This is referred to as "applied". As an alternative to applying during payment posting, you can use the Apply Supplier Entries and Apply Customer Entries page after you have made the payment posting. For more information, see, for example, Reconcile Supplier Payments with the Payment Journal or from Supplier Ledger Entries.
Get suggested payments to suppliers or employees
The Suggest Supplier Payments and Suggest Employee Payments functions can help you fill payment journal lines automatically according to supplier prioritisation and due dates. For more information, see Suggest Supplier Payments. With this function, the Applies-to Doc. No. field is always filled in.
Print cheques and submit payments electronically to your bank
In addition to recording that the payment is made, you can also use the Payment Journal page to output the payment for further processing by your bank. For more information, see Make Cheque Payments and Make Electronic Payments.
To make payments in the payment journal
Choose the icon, enter Payment Journals, and then choose the related link.
Open the journal batch that is dedicated to payments.
If you know who to pay, fill in the fields manually. Hover over a field to read a short description.
To also apply the payment to the related invoice or credit memo, choose the Applies-to Doc No. field, on the Apply Supplier Entries page, select the relevant invoice or credit memo, and then choose the OK button.
Many fields, such as the Document Amount and Due Date fields, are now filled in with information from the selected document.
Alternatively, use the Suggest Supplier Payments function. All the applies-to information and amounts are then also entered on the journal lines. For more information, see Suggest Supplier Payments.
Messages will guide you to fill in the required fields correctly.
When all payment journal lines are completed, choose the Post action.
To issue a refund cheque
- Choose the icon, enter Payment Journals, and then choose the related link.
- In the Document Type field, select Refund.
- In the External Document No. field, use this as a reference for the refund cheque (for example, return order number).
- In the Account Type field, select Customer.
- In the Account No. field, select the customer's account number that the refund cheque is being issued to.
- In the Amount field, enter the amount to be refunded.
- In the Bal Account Type field, select Bank Account.
- In the Bal Account No. field, select the bank account the cheque will come out of.
- In the Applies To Doc. No. field, select the documents requiring a refund.
- When all payment journal lines are completed, choose the Post/Print action, then choose the Post and Print action, and select Yes.