Is your Customer not Paying Full Amount?

In most of the common cases, customer does not pay the full amount. While doing payment customer forget about the exact Payment Amount that to be paid.

Ex:

1. Amount to be paid by customer is $100.50.
2. Customer Paid only $100.00
3. Amount of $0.50 is unpaid

NAV/ Business Central provides an efficient way to handle this unpaid amount in form of Payment Tolerance.

In this blog I will explain how we can pass entries in Business Central 365 for Payment tolerance.

NAV provides separate account for Payment Tolerance Debit & Credit.

It can be activated in General Ledger Setup.

Assignment of Tolerance Setup: Click on ‘Change Payment Tolerance’ action button.

Define Payment Tolerance % or Payment Tolerance Amount in Payment Tolerance Dialog box.

Figure 1 - General Ledger Setup

Press on ‘Yes’ option to confirm this to update all the Customer & Vendor

Activate Tolerance Warning Setup: Go to Application Tab of General Ledger Setup & activate Payment Tolerance Warning, also define the Payment Tolerance Posting.

Figure 2 - Application Tab of General Ledger Setup

Go to Customer Posting Group Card: Update Payment Tolerance Debit Account & Credit Account.

Figure 3 - Customer Posting Group Card

Payment Journal:

Go to Payment Journal & Apply Entries.

System will post the full figure of Payment Amount in the respective Customer & Cash Account.

Based on the Payment Tolerance Setup, system will update the payment tolerance entry.

Figure 4 - Payment Journal

Apply Entries in the Application Screen.

Figure 5 - Customer Application Entries

Press on OK Button, system will show you Payment Tolerance warning. Select Tolerance option & Press Yes.

Post Payment Journal Entry. It will post Tolerance amount in Tolerance Account.

Figure 6 - Payment Tolerance Warning Dialog

Go to G/L Register & Preview Posted Entries.

Here you can see Tolerance Amount appears in separate account ex: 07570

Figure 7 - Posted Payment Journal Entries

Note: This document is based on my knowledge. For, any queries please Email me at pankajgupta.knp2@gmail.com or comment below.

Thanks & Best Regards,

Pankaj Gupta