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How Automatically Pay Vendors in Business Central

In Dynamics 365 Business Central, when a Purchaser makes an Advance Payment to a Supplier or Vendor, we can adjust/update the payment quickly and automatically when the Purchase Invoice is posted. This process is called Automatic Vendor Payments with reference to the Purchase Invoice.

Please follow the below steps to achieve the automatic vendor payments.

Step 1: Create a Checking Account named CHECKING.

Step 2: Create Payment Method:

• Create the payment method named SAMPLE and assign
• Account Type = Bank Account
• Account No. = CHECKING

Step 3: Now assign the Payment method code to Vendor Card as shown below

Step 4: Now that you’ve created a Purchase order with the Vendor (specified above). As soon as Vendor is selected in Purchase Order header, the Payment Method Code = Sample will get assigned automatically (as shown below).

Step 5: Post Purchase Receipts & Purchase Invoice

• Select OK to post Purchase Receipt and Purchase Invoice

Step 6: Review Posted Automatic Vendor Payments

• Select Yes to review the Posted Automatic Payments as soon as Purchase Invoice is posted.
  
• To review the posted transactions or entries, select Process -> Find entries.

• Below image shows all the posted transactions, where you can see the Bank Account Ledger Entry
  
  
• Select the Bank Account Ledger Entry, where you will see that a Payment transaction is posted automatically.
  
• Go to Vendor Card and verify the Vendor ledger Entry, Vendor -> Ledger Entries
  
• In the Vendor Ledger Entry, you can see that the Document type = Payment and Remaining Amount = 0
  

The Automatic Vendor Payment has been posted automatically. For any questions about this process or how to optimize your Business Central environment please reach out to us at Support@BondConsultingServices.com.

by Bond Consulting Services

How-to Adjust 1099s in Business Central

When processing IRS 1099 forms, we often find adjustments to 1099 amounts are required.

Transaction level adjustments may be required because:

• A portion of the invoice is not a 1099 event (i.e. reimbursable expense.)
• Transactions were processed before the 1099 information was set on the vendor card.
• Transactions are coded to the wrong IRS 1099 Code or a vendor may be subject to multiple 1099 forms types.

1099 Form-Box adjustments may be required because:

• No transaction exists to adjust (i.e. migrated from another system.)
• Mass adjustment to the 1099 amount without having to change each transaction for the vendor.

For companies with Binary Stream Muli-Entity Management (MEM) installed, small variations are noted to adjust 1099s Form-Box by Entity.

• Vendor: Set up IRS 1099 Default on Vendor Card
  

Transaction Level 1099 Adjustments

Vendor Ledger Entries: Select Edit List and modify IRS 1099 Code and/or 1099 Amount.

• 1099 Forms Boxes: Select Form and Update Forms Box to update 1099 forms box with the sum of vendor transactions. This must be run each time you update transactions.

For MEM, after Update Form Boxes, select Update MEM Form Boxes to update forms by Entity.

• 1099 Nec (or other form) 2022 or MEM 1099 Nec (or other form) 2022: To print forms with adjustments.
  

Form-Box Level 1099 Adjustments (See MEM Variation Below)

• 1099 Forms Boxes: Select Update Forms Box to update 1099 forms box, select the relevant form Code and the Adjustments Exists number or Adjustments button.
  

Enter Vendor No., Year, and Amount of box adjustment.

Note that you can copy/paste multiple lines from Excel into the IRS 1099 Adjustments Window

• 1099 Form Boxes → Update Form Boxes to update the box amount by the total Transaction 1099 Amounts + Adjustments.
• 1099 Nec (or other form) 2022: To print forms with adjustments.

Form-Box Level 1099 Adjustments – MEM Variation

Rather than make form level adjustments in the 1099 Form Box, use the following process to make adjustments to each Entity:

• Dimension → Dimension → Dimension Values → Select Entity → MEM Entity Setup → 1099 Form Box → Select Code → Process > Adjustments or Adjustment Exists value

Edit List and enter manually or copy/paste from Excel.

• Dimension → Dimension → Dimension Values → Select Entity → MEM Entity Setup → 1099 Form Box → Update Form Boxes

And

• Dimension → Dimension → Dimension Values → Select Entity → MEM Entity Setup → 1099 Form Box → Update MEM Form Boxes
  

For any questions about processing these forms using Dynamics please reach out to us at Support@BondConsultingServices.com or click here to schedule a free consultation with one of our experts.

by Bond Consulting Services

How to Reverse an Invoiced Purchase Receipt

The Undo Receipt option is no longer possible when a Receipt has been invoiced. The correction might involve reopening the Posted Purchase Invoice, creating a Purchase Return Order, and recreating the Purchase Order.

Reopen the Purchase Invoice if a payment has been made:

1. Search "Vendor Ledger Entries" and filter by the Vendor No. and Document Type = Invoice.
2. Find the Invoice, then click on Process > Unapply Entries
3. Click on Unapply and confirm with Yes.Note the "Invoice No." as it will be used further in the procedure.Create a Purchase Return Order
   1. Navigate to Purchase Return Orders
   2. Create a new Purchase Return Order for the required Vendor. Change any information in the header if required, including adding a Cr. Memo number.
   3. Use the menu Prepare > Get Posted Lines to Reverse, and locate the Posted Purchase Invoice lines; you could also use other documents.
      • Turn on the "Return Original Quantity" toggle if some units have been sold or consumed.
   4. Select the lines to reverse, use Select More if required, and click OK.

   

   The system might warn about possible cost adjustments for existing entries.
   

   5. When the lines are imported, make any corrections and select a Return Reason Code if required.

   If you want to close the original Invoice when posting the Purchase Return, use Process >  Apply Entries to apply the new Credit Memo with the original Invoice. Just use the Set Applies to ID and click OK.

   

   6. Post the Invoice (Cr. Memo) – using Ship and Invoice.

    

   Recreate the Purchase Order

   1. Create a new Purchase Order for the same Vendor.
   2. Use Prepare > Copy Document to recreate the Purchase Order.
   • Select Document Type = Posted Invoice (or any other type that might have the information)
   • Find the correct Document No. (Invoice No.)
   • Confirm the Buy-From Vendor No./Name
   • Turn on the toggle "Include Header" and do not recalculate the lines; click OK
   3. Validate the information that matches the original Purchase Order, make any necessary corrections and post the Receipt.

    

   For any further questions about this process or how to optimize your business' ERP environment with Dynamics 365 Business Central please reach out to our team at Support@BondConsultingServices.com or click here to schedule a consultation with one of our experts. 

by Bond Consulting Services

How-To Track Expired Orders Using the Incoming Delivery Dashboard

NuBeTech’s free tool, Incoming Delivery Dashboard, is useful for those wanting complete visibility on incoming deliveries. This free add-on for Dynamics 365 Business Central manages incoming deliveries for your purchases, including on Purchase Orders, Quotes, Invoices, Credit Memos, Blanket Orders, and Return Orders. By daily accessing Incoming Delivery Dashboard, you can easily recognize which lines have an expired “Expected Receipt Date”.

This Dashboard groups these documents into a single page, letting you filter them according to any of the following criteria:

• Document Type
• Vendor No. 
• Outstanding Quantities
• Document Status
• Document Date
• Gen. Bus. Posting Group
• Gen. Prod. Posting Group

Within the page header, enable “Only outstanding qt.ies.” if you want to look at lines where outstanding quantities are greater than zero.  Click “Update Line”, to refresh the page:

The displayed document numbers are color coded, so you can easily check the "Expected Receipt Date" of every line.

For lines with outstanding quantities greater than zero, color depends upon the Expected Receipt Date.

Red: The “Expected Receipt Date” is before Business Central’s “Work Date”.

Yellow: The “Expected Receipt Date” is after the “Work Date” but before the warning date.

Green: The warning date is after or corresponds exactly to the “Work Date”.

As with any List Page, you can take advantage of Microsoft’s “Share” button to export the filtered data to Microsoft Excel:

Business Use Case

One important goal in any distribution environment is to keep track of expired Purchase Orders not delivered yet, as shown in the following example:

Setup

Accessing “Purchases & Payables Setup” within Business Central allows you to set up the Dashboard.

After clicking the “Incoming Delivery Dashboard” FastTab, enter a number within “Warning Range Days”.

For example, entering “5” means that document numbers containing Expected Receipt Dates that will occur five days from now will be colored in yellow:

For any additional questions about this process or how Incoming Delivery Dashboard can help your Business Central environment, please reach out to us at Support@BondConsultingServices.com

by Bond Consulting Services