In our previous video, Tensoft COO Dan Berube demonstrated the purchase order functionality in Microsoft Dynamics 365 Business Central. The following demo continues on from there in Account Payables in Business Central. This session covers how to enter a new vendor invoice, match vendor invoices to purchase orders and send payments to vendors.
Below is a partial transcription of this training video:
“We got the purchase order. We have $25,000 here. We now get the invoice for this. I need to get this into A/P because now of course I need to pay for the booth.
So, go ahead and open up that purchase order. We get the invoice number from the vendor and so I am going to put that here. ‘Booth invoice’ for our Fabrikam vendor. Not changing anything. Basing the invoice from our PO value, I am ready to then post this and receive it, so I can create a vendor record. So right from the purchase order, there is quantity of 1 and we can of course change this to half if I am only paying half now, half later. We can process prepayments, all functionalities you expect around being able to receive or invoice partial PO’s or process pre-payments is available from the system. In our case, we are keeping it very simple. Just getting the invoice for that. We are going to go ahead and post that.
So, we are going to receive an invoice. Even though it’s not an inventory, we want to do both of these parts at the same time. We would have the ability to receive something, may be the invoice is coming later but we want to get that expense on our general ledger. We can modify this process to incorporate a three-way match. We are going to go ahead and receive an invoice. So, what we have now is the posted invoice in our system. We have now an invoice that is committed to the ledger against our department Tradeshow and now we have a payable due to Fabrikam. We can now get this out, so we can pay for this invoice. Let’s go ahead and pay.
For pay, we will go into our payment journal. So, we have a payment journal. We are going to go ahead and open that up and have the system then present me with this invoice from Fabrikam that we need to pay. So, we will go into our batch and again those batch names are user-defined. If you have multiple batches, if you have multiple people paying, if you have multiple payment types, really use those journal entries or payments in this case payment journal batches as a way to guide user for what they are about to do. I have a blank journal entry here. I don’t know, there is nothing presented here. I have to go and tell the system what to do- who should I be paying. I have some past due documents and I want to make some payments.
Now, in my example, I know that we pay Fabrikam by wire. We don’t cut checks to them. They prefer wire and we prefer to send them the wire. So, when I go out and suggest vendor payments, I can make some choices here to only bring you back the vendor/vendors that we pay by wire to make them do my wire payments today and cut my checks tomorrow. So, if I come in here, I want to tell the system what to bring me back. I want to give it some instructions. I want to say give me all invoices that are due by when. So, I am going to go out couple months here to capture that invoice. I will go ahead and post that today, so that we can pick a posting date. I am summarizing this by vendor. I don’t want a payment for every invoice, I want to group those invoices together, send the payment to the vendor and make one posting for that….”
Other demo videos to watch:
• How to Create a Journal Entry in Microsoft Dynamics 365 Business Central
• How to Use GL Categories for Financial Reporting in Microsoft Dynamics 365 Business Central
• A Quick Introduction to Microsoft Power BI (Demo)
• How Can Dimensions Help Streamline Chart of Accounts in Microsoft Dynamics 365 Business Central?