Statistics on payment practices (UK) in Microsoft Dynamics 365 FO

Dear Dynamics 365 Lovers,

In this blog we shall go through the Statistics on payment practices setup and its operation in Microsoft Dynamics 365 Finance and Operations.

In the United Kingdom (UK) ,companies must prepare and publish information about their payment practices and performance on a web-based service that is provided by or on behalf of the government for each reporting period in the financial year, .

Lets explore 

To use this feature, Legal Entity must need to be UK localization enabled in the Organization administration, or you can use "Detect using company address" by adding UK primary address.

Business Scenario Statistics (The scenario is divided into three category)

1. During the reporting period, the average number of days that passed between the date when invoices were received and the date when payments were made (in other words, the average number of days that was taken to make payments)
2. Of the payments that were made during the reporting period, the percentage that were made in 30 days or less, in 31 to 60 days, and in 61 days or more
3. Of the payments that were due during the reporting period, the percentage that were not paid according to the agreed-on terms

Electronic Configuration

Download the latest version of the Statistics on payment practices (UK) Electronic reporting (ER) configuration, to download Electronic reporting (ER) configuration, visit this page to learn more on this Download Electronic reporting configurations from Lifecycle Services

Once imported the configuration is done

Reporting 

The Reporting is done in Accounts payable-> Inquiries and Reports-> Statistics-> Report on Payment deadline

From the report we need to select the Date criteria (See above screen for below details) 

Select one of the following options: depending on the option that you select, the number of days that was taken to make payments will be calculated by using the payment date and the corresponding type of date that is selected in the dialog box

Invoice accounting date= Posting date of the Invoice

Invoice date = Invoice date in the invoice 

Invoice receive date= Receive document date in the invoice

From date and to date means Specify the start and end dates of the reporting period.

Vendor Posting Profile means To generate a report for only a specific vendor profile, select the profile ( we can leave it blank to all details of all posting profile)

Print document details means Set the option to Yes to export details of invoice and payment documents to the report.

Select ok to generate the report

An excel will be downloaded in your system from Dynamics (Report on Payment Deadline)

This contains two sheet 

1: Payments Made-

During the reporting period you selected in the filter (from date and to date), the average number of days that was taken to make payments & payments that were made during the reporting period, the percentage that were made in 30 days or less, in 31 to 60 days, and in 61 days or more

2: Payments due

Payments that were due during the reporting period, the percentage that were not paid according to the agreed-on terms

Once this is checked, companies can report this to GOVT in the online portal

So, this is it

I hope this blog will add some value to you and thank you for reading.