When you are selling or buying items or services, there are 2 important things to know. “How will it be paid for”, and “When is the payment due”? In Microsoft Dynamics NAV, the “How to Pay” is defined as the Payment Method, and the “When to Pay” is defined as the Payment Term
You have the ability to setup multiple Payment Methods and Terms to use on your Purchase and Sales Transactions.
Today we’ll discuss Payment Methods
In the Classic Client, Payment Methods can be found in Administration > Application Setup > Financial Management > Payment Methods.
If you’re using the RoleTailored Client, go to Departments > Administration > Application Setup > Financial Management > Finance > Lists > Payment Methods.
The screenshot seen here is the from the demonstration Cronus USA, Inc. company and this example is from Dynamics NAV 2009 R2. This company already has some payment methods already defined. You need at least the first 2 columns defined for a method to be valid.
Code: This column must be filled in and can’t be blank. It is up to 10 alphanumeric characters.
Description: This column is up to 30 alphanumeric characters, and gives the end user an explanation of the Payment Code
Now your Payment Methods are ready to be used on purchasing or sales documents such as Invoices or Purchase Orders. You can also setup a Default Payment Method for Vendors or Customers instead of having to select each time during document entry.
The 3 next columns in the Payment Method form really tell NAV how to operate with these terms.
- Bal. Account Type and Bal. Account No.: When using a Balancing Account Type and Balancing Account No., Microsoft Dynamics NAV automatically creates the balancing or ‘reconciling’ journal line. Relative to Payment methods, if the Bal. Account Type and Bal. Account No. fields have a payment method code selected and its used on a document such as an Invoice, when posted, NAV will automatically create a Payment entry and apply it to the posted document. This can be very useful, for example, when doing Counter Sales so that you invoice and get paid in one simple step.
- Payment Processor: This field is just became available in NAV 2009 R2 and is part of NAV’s link to Dynamics Online Payment Services (Dynamics OPS; Microsoft’s Credit Card processing module that integrates to NAV).Payment Processor is an option field with two choices: blank (default value) and Dynamics Online. Unless you are using Microsoft’s Dynamics Online Payment Service, always leave this as blank. If not, it will trigger credit card processing in Dynamics NAV.
We hope you found this quick tip helpful in understanding how Payment Types and Methods work in Microsoft Dynamics NAV (Navision). If you have further questions feel free to hit the chat button below.