Accounts Receivable in general:
Accounts receivable is an asset to an organization which means the customer owes money to the company for the services or the products sold on credit. Accounts receivable operations on the high level involves customer invoicing, payments and effectively tracking and following up on outstanding invoices.
Accounts Receivable in D365 finance?
D365 finance offers all the capabilities from invoicing, payment processing to tracking and reporting outstanding invoices. Additionally, D365 finance offers comprehensive credit and collections features. Please read through the blog below for more understanding.
Key configurations
Customer workflows:
Customer workflows is new in D365 finance which provides the ability to configure workflow approvals for changes in the fields of a customer record. Users can select fields to which the workflow should be triggered. Click here to know more.Customer groups:
Customer groups are mandatory to create a customer record in D365 finance that provides the ability to set default payment terms, sales tax, terms of payment, default ledger accounts which applies to one or more customers. For more details please click hereCopy customers by using shared number sequences
Customers can be now copied from one legal entity to another legal entity easily. The number sequence should be same in every legal entity that you want to copy a customer to. Click here to check my old blog for details on copy customers functionality Click here for more information on creating and maintaining customersCustomer posting profile:
Every customer created should be directly or indirectly related to posting profile that connects AR subledger to general ledger by defining the ledger accounts to be used during the posting of customer transactions (Invoicing, Payments, Write-off’s etc..)Methods of payment & Payment schedules:
Method of payments are different ways to accept the payments from the customers. D365 finance provides an ability to accept the payments through credit card, cash in advance, check and ACH (Electronic payments). ACH or electronic payments is more preferred payments in today’s day and age. Click here to know about methods of payment.Terms of payment & Cash discount:
Terms of payments is generally an agreement between company and customers by when the payment should be made. Terms of payment in D365 finance is used to calculate the due date of the invoices for collection process and aging reports. Cash discount is something that customer is offered an discount if the payment is made even earlier than the agreed terms.Key functionalities
Invoicing:
Sales order invoicing:
The customer invoices can be created for the items sold through sales orders which includes order lines, item numbers. The item numbers are directly or indirectly associated with ledger accounts. The general ledger and inventory transactions are automatically created once the invoices are posted.
Click here for more details on Sales order invoicing.
Free text invoices:
Free text invoices are used to book invoices for services provided to which company does not track the inventory for. Free text invoices are also used to sell the fixed assets of the company. Below are some of the external blogs to learn more about free text invoices.
Free Text Invoicing in Microsoft Dynamics 365 for Operations | RSM Technology Blog (rsmus.com) Free Text Invoice Dynamics 365 for Finance & Operations – Microsoft Dynamics 365 CommunityPayment processing and Settlements
Payment proposals
Payment proposal in D365 provides the capability to view all the outstanding customer transactions which users can select, update to generate the payment lines. Once the payment journal lines are created through payment proposal, the office add-in functionality can be used to further update\modify payment journal line before posting.Enter customer payments
Enter customer payments form is an alternative option to create the payment journal lines manually. Create and handle payments of customer invoices for sales orders – Learn | Microsoft Docs Settle and undo settle: Settle open transactions form displays all the open transactions of a particular customer. The form provides the ability to manually settle debit and credit transactions and apply cash discount if any. For example when invoices are not settled against the payment when payment entries are recorded. Undo settlement displays all the settled transactions either through payment entry or from settle open transactions. This form provides the ability to reverse the settlement in case of settlement errors. Once the settlement is reversed the transactions will reappear in settle open transactions. Important note: The settlement and undo settlement does not change the ledger balance summarized but it may post settlement entries when different financial dimensions are used for invoices and payments. Settle transactions and undo settlements – Learn | Microsoft DocsKey Reporting
Customer statement: Customer statement is an external report which is sent to customers on periodic basis to provide details of transactions which includes payment received and outstanding balance. Just like our credit card statement.Customer aging:
The customer aging report provides the open customer transactions data in aging buckets to determine customer balances which are due as of today, 30, 60, 90, 180& above etc. This helps AR team to calculate the reserves for the month and year end process, at the same time collection team to take action on recovering the outstanding balances from the customer.
Customer balance list report
Customer balance list report provides the as of date balances for the customer. The report also provides the ability to include details of the transactions which is summarizing the outstanding balance.
Customer to ledger reconciliation report
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