Incoming invoice payments
After you register, approve, and post the invoice, it's time to pay the invoice. For this task, you'll use payment journals and payment proposals.
Payment journals
With payment journals, you can complete the following tasks:
- Create payments through the payment journal.
- Use the payment journal to enter and post payments. Make payments and enter them according to the terms of payment that you've established with vendors.
The payment journal provides several ways to create payment lines:
- Select Payment proposal.
- Select Functions > Settlement.
- Create a journal line and then enter the payment details manually.
You can choose one of two methods to select the invoices to pay through the payment journal:
- Payment proposal - Use this option to search for invoice lines that meet selected search criteria.
- Settlement - Use this option to select the specific invoice lines to pay.
After you've created all payment lines, use the Generate payments command on the Functions menu to generate the payment. You can use the Generate payments option to select a payment method, and controls have been set up if the system prints checks or creates a payment file, for example.
To view and manage vendor payment journals, go to Accounts payable > Payments > Vendor payment journal.
Manual approval
In the manual approval process, the Active toggle in the Approval section is set to Yes. Then, the value of the Approval workflow toggle in the Approval Workflow section is set to No. From the Approve dropdown menu, select the user group that contains the list of users who are eligible to approve the journal.
When these options have been set, the journal will have a new Approval menu item. After finalizing the journal, the user can select the Report as ready option from the Approval dropdown menu. Now, the approver can access the journal to approve or reject it, and then they can post it after it's been approved.
Payment journal workflow
In the workflow approval process, the Approval workflow toggle in the Approval Workflow section is set to Yes and the Active toggle in the Approval section is also set to Yes. From the Workflow dropdown menu, select the workflow that you want to associate with the journal.
If the workflow is active for posting a payment journal, you can validate the vendor bank account before submitting to the workflow. The validation step helps save time because it validates that no issues have occurred with bank accounts that are used in the payment journal. The validation step also stops the workflow process if an error has occurred. If an error is encountered during the validation step, the user must correct the issue and resubmit the payment to the workflow for approval.
Payment proposal
You'll post payments that you've made to vendors to ensure that the accounts payable subsidiary ledger matches the general ledger. The payment proposal feature searches for payment lines that are due or have a maximum date for receiving a cash discount. It also verifies vendor transactions that are open and approved.
Dynamics 365 Finance includes only transactions with a due date or a cash discount date in the search. After the payment lines have generated, you can edit them in the payment journal.
In the Proposal type field, select the type of payment proposal to create. Select from the following options:
- Due date - Transfers the set of vendor payments for due invoices.
- Cash discount date - Transfers the set of vendor payments that fulfills the criteria for obtaining a cash discount.
- Due date and cash discount date - Transfers the set of vendor payments that fulfills the criteria for obtaining a cash discount. Thereafter, it will transfer vendor transactions that are proposed after the due date.
