Set up payment methods
Payment methods define the way you prefer for customers to pay you, and how you like to pay your vendors. The method can vary for each customer or vendor. Examples of typical payment methods are bank, cash, cheque, or account.
You can assign a payment method to customers and vendors so that the same method is always used on the sales and purchase documents you create for them. If needed, you can change the method on the sales or purchase document. For example, if you want to pay a particular purchase invoice in cash rather than by cheque. The default payment method assigned to the vendor doesn't change.
The same payment methods are used for sales and purchase documents. For example, a cash payment method is used to make payments and to receive them. Business Central knows that when you're creating a sales invoice you expect to receive payment, and the opposite for purchase invoices.
CR/Adj notes for returns, however, are exceptions because money is flowing in the opposite directions, from you to your customer and from your vendor to you. Therefore, a default payment method isn't assigned to CR/Adj notes. There is, however, a workaround. You can specify terms of payment for the customer or vendor. Though the Calc. Pmt. Disc. on Cr. Memos field isn't intended for this workaround, if you choose the checkbox on the Payment Terms page a default payment method is added when you create a credit memo.
To set up a payment method
Business Central provides a few payment methods that businesses often use. You can, however, add as many as you need.
- Choose the
icon, enter Payment Methods, and then choose the related link. - Fill in the fields as necessary. Hover over a field to read a short description.
Optionally, add payment terms to your payment method. For more information, see Set Up Payment Terms.
To assign a payment method to a customer or vendor
- Choose the icon, enter Customer or Vendor, and then choose the related link.
- In the Payment Method Code field, choose the method to use by default for the customer or supplier.
See also
Register New Customers
Set Up Payment Terms
Finance
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