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Setting Up Credit Card Processing in Dynamics 365 Business Central

Jun Wang Profile Picture Jun Wang 4,053 Super User

 Setting Up Credit Card Processing in Dynamics 365 Business Central

Introduction
In today’s fast-paced business environment, managing credit card transactions efficiently is crucial. Microsoft Dynamics 365 Business Central allows users to streamline their credit card management by setting up a bank account specifically for credit card transactions. This approach not only simplifies accounting practices but also provides clear visibility into credit card expenditures. Here’s how you can set up and manage your credit card transactions in Business Central.

Step-by-Step Guide to Setting Up Credit Card in Business Central

Step 1: Set Up a Bank Account for Your Credit Card
Begin by setting up a new bank account in Business Central that will represent your credit card. This account will be used to track all transactions made using the credit card.

  • Go to the Bank Accounts page.
  • Click New to create a new bank account.
  • Enter your credit card information as you would for a regular bank account. Make sure to specify a Bank Account Posting Group that determines how transactions will be posted in your financial statements.

Step 2: Create a New Payment Method
Next, you will need to create a payment method specifically for credit card payments.

  • Use the search bar to open the Payment Methods page.
  • Click New to create a payment method.
  • Assign a name that clearly identifies this as your credit card payment method.
  • Set the Bal. Account Type to 'Bank' and the Bal. Account No. to the bank account number you established for the credit card.

Step 3: Assign the Payment Method to Vendors
Assign this new payment method to the vendors you will be paying via credit card.

  • Open the Vendor Card for each vendor.
  • Navigate to the Payments section.
  • Select the new payment method from the drop-down menu.

Step 4: Manage Purchase Invoices
When you post a purchase invoice for a vendor assigned with the credit card payment method:

  • The system records the transaction against the vendor as paid.
  • The corresponding expense is recorded against the credit card bank account, showing as a negative balance (or liability).

Step 5: Reconcile the Credit Card Bank Account
Regularly transfer funds from your main bank account to your credit card bank account to settle the outstanding balance.

  • Open the General Journal page.
  • Enter a line to move funds from your main bank account to your credit card bank account.
  • Post the journal to update your accounts and reflect the payment made to the credit card.

Conclusion
By following these steps, you can effectively manage credit card transactions within Dynamics 365 Business Central, ensuring your financial data remains accurate and up-to-date. This setup not only simplifies the reconciliation process but also provides a clear audit trail for your credit card expenses.

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