Customer and Vendor Payment Methods

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Posted on by CU11060555-0

Hello everyone,

I am new to the ERP world and have recently started learning Business Central.

While studying customer payments, I found that Business Central provides several ways to record payments, including:

Cash Receipts Journal
Register Customer Payments
Deposits

I would like to understand when each method should be used in a real business scenario. Is there a recommended or "best practice" approach, or does it depend on the company's processes?

Also, are there any other common methods for recording customer payments that I should be aware of?

Regarding vendors, does Business Central provide similar payment processes and journals, or are there significant differences compared to customer payments?

Thank you for your guidance.

Categories:

Microsoft Dynamics NAV

Dynamics 365 Business Central

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Pallavi Phade 5,734 Super User 2026 Season 1 on at

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Namaste @CU11060555-0

There are various screens to pass payment entry .

Cash Receipts Journal - Manual Posting of low volume entries . You can scheudle and post . If payment method is cash at the time of invoice posting cash entry automatically gets posted . Cash account can be set by-defualt

Example A customer pays ₹50,000 via bank transfer for multiple invoices→ Accountant manually applies payment to 3 invoices

Register Customer Payments - Simple/quick payment entry . list of invoices displayed and payment can be registered

Example -Retail customer pays exact invoice amount→ Simply select invoice → post payment

Deposits

Cheques, cash bundles deposited together . High volume transactions .

Example You receive 10 cheques in a day → deposit all at once→ Bank shows one deposit entry ₹2,00,000→ Use Deposit functionality

Payment Reconcilation

It auto-match bank data. High Volume Transactions . Advanced version of tasks.

Example - 200 UPI payments daily→ Import bank file → system auto matches invoices

There are various types of Journals considering tax , cost , inventory , GL , Finance .

https://learn.microsoft.com/en-us/training/paths/use-journals-dynamics-365-business-central

Warm Regards

Pallavi Phade

www.linkedin.com/in/pallaviphade131116

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