In Dynamics 365 Business Central, when a Purchaser makes an Advance Payment to a Supplier or Vendor, we can adjust/update the payment quickly and automatically when the Purchase Invoice is posted. This process is called Automatic Vendor Payments with reference to the Purchase Invoice.
Please follow the below steps to achieve the automatic vendor payments.
Step 1: Create a Checking Account named CHECKING.
Step 2: Create Payment Method:
- Create the payment method named SAMPLE and assign
- Account Type = Bank Account
- Account No. = CHECKING
Step 3: Now assign the Payment method code to Vendor Card as shown below
Step 4: Now that you’ve created a Purchase order with the Vendor (specified above). As soon as Vendor is selected in Purchase Order header, the Payment Method Code = Sample will get assigned automatically (as shown below).
Step 5: Post Purchase Receipts & Purchase Invoice
- Select OK to post Purchase Receipt and Purchase Invoice
Step 6: Review Posted Automatic Vendor Payments
- Select Yes to review the Posted Automatic Payments as soon as Purchase Invoice is posted.
- To review the posted transactions or entries, select Process -> Find entries.
- Below image shows all the posted transactions, where you can see the Bank Account Ledger Entry
- Select the Bank Account Ledger Entry, where you will see that a Payment transaction is posted automatically.
- Go to Vendor Card and verify the Vendor ledger Entry, Vendor -> Ledger Entries
- In the Vendor Ledger Entry, you can see that the Document type = Payment and Remaining Amount = 0
The Automatic Vendor Payment has been posted automatically. For any questions about this process or how to optimize your Business Central environment please reach out to us at Support@BondConsultingServices.com.
