Cash management in Microsoft Dynamics 365 Business Central is used to manage the company’s bank accounts.

One of the main features of cash management is the Bank Account Card. The Bank Account Card contains all the company’s bank details. On the Bank Account Card, users can perform the following:

• Process payments received from customers.

• Process payments to vendors.

• Void posted checks (known as financial voiding).

In Cash management, receivables and payables play an important role.

In the receivables management area, all information for a customer is kept in a customer card. This includes all customer ledger entries and detailed ledger entries.

The basic functions in receivables cash management include the following:

• Applying and posting customer payments.

• Unapplying and reversing posted entries.

In the payables management area, vendor information is kept on vendor cards. This includes vendor ledger entries and detailed ledger entries. Payables Management helps companies manage vendor payments more effectively and build up a comprehensive vendor database.

Bank Account Overview

For each transaction made in Microsoft Dynamics 365 Business Central that uses a bank account, the system will post an entry in the bank account ledger. The bank account posting group that is assigned to each bank account is used to post the related general ledger (G/L) entries with the transaction.

Additionally, if the user makes a manual or computer check payment, the system posts an entry to the check ledger to record the check transaction and the current status of the check.

Each bank account has its own card that contains different kinds of information. On the bank account card, you enter information that is specific to the individual bank account, and you can change this information, if this is necessary.

Bank Account Window

To access Bank Accounts click on Cash Management à Bank Accounts

The Bank Account window provides an overview of all the bank accounts that are created in Microsoft Dynamics 365 Business Central. To create a new bank account, or change an existing one, double-click the bank account to locate the bank account card.

Bank Account Card

The Bank Account card has four FastTabs:

• General

• Communication

• Posting

• Transfer

General Tab

Communication

Posting

here we can enter currency code if bank account is related to foreign transactions. We can enter GST related details, it will require while calculating GST on bank charges, also we can define Last cheque No. and Last Statement No.

Transfer

Customer Overview

To manage the total finances of the company, you must be able to manage customer data. In Microsoft Dynamics 365 Business Central, customer master data is maintained in customer cards. The customer card is used for customers in receivables management, financial management, and order management.

Customers Window

To Access Customer window

Click  on Sales à Customers

The customer window provides an overview of the customers who are created in Microsoft Dynamics 365 Business Central. To create a new customer, or change an existing one, double-click the customer for which you want to locate the customer card.

Customer Card

The Payments FastTab on the customer card is used to define how customer’s payments are managed.

The Payments FastTab contains the following fields:

Application Method – Specify how to apply payments for this customer. The following options are available:

o Manual – Payments are only applied if you specify a document.

o Apply to Oldest – If you do not specify a document for the payment to be applied to, payments are applied to the oldest of the customer’s open entries.

Payments Terms Code – Specifies a code for the payment terms that you will grant the customer. The payment term determines the due date of the invoices and credit memos the customer will receive. You also use the payment terms to specify the payment discount percentage.

Payment Method Code – Specifies a code for the method that the customer usually uses to submit payment. To view the payment methods in the Payment Methods window, click the field.

Cash Flow Payments Term Code – Specifies a payment term that will be used for calculating cash flow. Cash flow payment terms are used in the Cash Flow Forecast Card window.

Block Payment Tolerance – Specifies that the customer is not allowed payment tolerance.

Analyzing Receivables

When you post transactions to customers in Microsoft Dynamics 365 Business Central, the following customer entries are created:

• Customer ledger entries • Detailed customer ledger entries

Customer entries provide more information about customers and sales business. Customer ledger entries are posted entries from sales documents such as, sales orders and sales invoices.

To view the detail of a customer ledger entry, you can drill down on the amount fields to the detailed customer ledger entries.

The detailed customer ledger entries store the actual amounts of the customer transactions, such as an invoice. The customer ledger entries show the amounts as FlowFields.

Examples of where additional detailed customer ledger entries are created to change the customer ledger entries include the following:

• Foreign currency exchange rates

• Payment discounts

• Payment tolerances

• Applications •

Rounding

The Detailed Cust. Ledger Entries window figure shows the two detailed customer ledger entries of one (applied) customer ledger entry

Vendor Overview

To manage the total finances of the company, you must be able to manage vendor data and vendor payments. This helps avoid penalty fees if there is a late payment, maintain a good relationship with the vendors, and to receive a discount if the company makes an early payment.

Vendor Window

To Access Vendor Card click on Purchasing à Vendors

The vendor window shows the most relevant vendor information. You can use the vendor card to view additional information, to create a new vendor, or to change an existing vendor The Payments FastTab on the Vendor Card is used to define how payments to vendors are managed

The Payments FastTab contains following fields:

• Application Method – Specify how to apply payments for this customer. The following options are available:

o Manual – Payments are only applied if you specify a document. o Apply to Oldest – If you do not specify a document for the payment to be applied to, payments are applied to the oldest of the customer’s open entries.

Payments Terms Code – Specifies a code for the payment terms that you will grant the customer. The payment term determines the due date of the invoices and credit memos from the vendor. You also use the payment terms to specify the payment discount percentage.

Payment Method Code – Specifies a code for the method that the customer usually uses to submit payment. To view the payment methods in the Payment Methods window, click the field.

Priority – Specifies a number that corresponds to the priority you give the vendor. The Priority field can be used if you have only a limited amount available for payments.

Cash Flow Payments Term Code – Specifies a payment term that will be used for calculating cash flow. Cash flow payment terms are used in the Cash Flow Forecast Card window.

Block Payment Tolerance – Specifies that a vendor is not allowed payment tolerance.

Analyzing Payables

Similar to customers, vendor postings also result in two vendor entries:

• Vendor ledger entries • Detailed vendor ledger entries Vendor entries behave exactly like customer entries

Bank Payment Voucher

We can use Bank Payment Voucher to make Advance payment to vendor or payment against invoice.

Search Bank Payment Voucher in the Search bar

We can create multiple batches for Bank Payment voucher, so that multiple user can pass entries at the same time by using the batches.

In the Posting Date field enter entry date, select “Payment” in the Document Type, Document No. will auto update by the system, in the Account Type field select Vendor, Account No. Select Vendor Code. Enter Amount if you want make Advance Payment

In case, if you want to pay against invoice, then you need to click on Process à Apply entries, then select invoice

Select entry

Click on three dots à Process à Set Applies-to-ID

System will update Bank payment voucher number in the Applies-to-ID field as shown in the below screen, then click on OK

System will update the Amount in the Bank Payment Voucher line

In the Bal. Account Type field select Bank Account

Bal. Account No = Select Bank Account No.

Enter Narration in the Voucher narration

Click on Post à Preview Posting, check all Accounting effects

Click on Post button & post Bank Payment entry.

Go to the Bank Account ledger entries & check posted entry.

Bank Receipt Voucher

We can use Bank Receipt Voucher to make Advance payment to Customer or payment against invoice.

Search Bank Receipt Voucher in the Search bar

We can create multiple batches for Bank Receipt voucher, so that multiple user can pass entries at the same time by using the batches. In the Posting Date field enter entry date, select “Payment” in the Document Type, Document No. will auto update by the system, in the Account Type field select Customer, Account No. Select Customer Code.

Enter Amount if you want make Advance Payment

In case, if you want to pay against invoice, then you need to click on Process à Apply entries, then select invoice.

Select entry

Click on three dots à Process àSet Applied-to -ID

System will update bank receipt voucher no. in the Applies-to-ID field, then click on OK

System will update Amount in the Bank Receipt Voucher, in the Bal. Account Type field select “Bank Account”

In the Bal. Account No. field select Bank Account Code, enter Voucher Narration

Click on Post à Preview Posting

Check all Accounting Effects.

Click on Post Button à System will post Bank Receipt.

Go to Bank Ledger entries and check posted bank receipt entry.

Cash Payment Voucher

We can use Cash Payment Voucher to make Cash Payment to vendor or Cash payment for expenses.

 Search Cash Payment Voucher in the Search bar

We can create multiple batches for Cash Payment voucher, so that multiple user can pass entries at the same time by using the batches.

In the Posting Date field enter entry date, select “Payment” in the Document Type, Document No. will auto update by the system, in the Account Type field select G/L Account, Account No. Select G/L Account Code.

Enter Amount with Positive sign

in the Bal. Account Type field select “G/L Account”

In the Bal. Account No. field select Cash G/L Account Code, enter Voucher Narration

Click on Post à Preview Posting

Check all Accounting Effects.

Click on Post Button à System will post Cash Payment Voucher.

 You can check Cash book report or Go to Chart of Accounts à Cash Ledger à General ledger entries.

Cash Receipt Voucher

We can use Cash Receipt Voucher to make Cash Receipt to Customer or Cash receipt for Income ledgers.

 Search Cash Receipt Voucher in the Search bar

We can create multiple batches for Cash Receipt voucher, so that multiple user can pass entries at the same time by using the batches.

In the Posting Date field enter entry date, select “Payment” in the Document Type, Document No. will auto update by the system, in the Account Type field select G/L Account, Account No. Select G/L Account Code.

Enter Amount with negative sign

in the Bal. Account Type field select “G/L Account”

In the Bal. Account No. field select Cash G/L Account Code, enter Voucher Narration

Click on Post à Preview Posting

Check all Accounting Effects.

Click on Post Button à System will post Cash Receipt Voucher.

 You can check Cash book report or Go to Chart of Accounts à Cash Ledger à General ledger entries.

Contra Voucher

We can use Contra Voucher to Transfer Money from Bank to Cash / Cash to Bank / Bank to Bank

 Search Contra Voucher in the Search bar

We can create multiple batches for Contra voucher, so that multiple user can pass entries at the same time by using the batches.

In the Posting Date field enter entry date, select “Payment” in the Document Type, Document No. will auto update by the system, in the Account Type field select G/L Account, Account No. Select G/L Account Code.

Enter Amount with positive sign

in the Bal. Account Type field select “Bank Account”

In the Bal. Account No. field select Bank Account, enter Voucher Narration

Click on Post à Preview Posting

Check all Accounting Effects.

Click on Post Button à System will post Contra Voucher.

 Go to the Bank Account Ledger entries and check posted entries.