When to use Sales Journal, Cash Receipt Journal and Register Customer Payment?

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Posted on by Belarmino Vicenzo

I've realized that d365 BC has more than one way of processing payments from customers.

So it get's me confused because I can do, but I can't explain why or when to use which.

So, please, it would be very helpful if someone explained it, and if possible with real world examples.

PS: I'm not an accountant so if it's not asking to much, please take that in consideration when explaining.

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Dynamics 365 Business Central

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Belarmino Vicenzo 70 on at

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RE: When to use Sales Journal, Cash Receipt Journal and Register Customer Payment?

I got it, thanks

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Gavin 2,494 on at

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RE: When to use Sales Journal, Cash Receipt Journal and Register Customer Payment?

Hi,

Just to add what others have posted I tend to use Sales Journal for things like customer invoices and credits etc and post customer payments via a cash receipt journal. I do this because of the "Source Code" that will be used in the GL entries which I post using those journals. For example when I use a Sales Journal the transaction gets a source code of SALESJNL and when I use Cash Receipt Journal it will have a source code of CASHRECJNL. This makes its easier to report and filter on data in the GL.

For example this is the Source Code Setup showing the source codes assigned to the journal types. (please note you can also set this on the General Journal Templates)

Coming for a Dynamics GP background, which has specific windows for specific tasks, I found it very strange that I could post a Sales Invoice in a Cash Receipt journal and a Purchase Invoice in a Sales Journal. On digging further I found its because all the financial journals in BC are essentially the same. I documented how it works in this blog which you may find of interest. https://thedynamicsexplorer.com/2020/11/04/dynamics-365-business-central-how-troubleshooting-the-error-amount-must-be-positive-in-gen-journal-line-journal-took-me-on-a-journey-of-discovery-with-journals/

I hope this helps.

Thanks

Gavin

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Belarmino Vicenzo 70 on at

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RE: When to use Sales Journal, Cash Receipt Journal and Register Customer Payment?

Sales Journal I would use to record Invoices, when you say to record invoices, you mean to pay customer invoices or create an invoice?
I would use the Cash Receipt Journal to record Payments, when you say payments, you mean cash?

In my country, a payment is a payment, there're no distinction of Invoice or cash so I get a little bit confused.

If I'm about to register to RTC, I will only refer the invoice and choose a payment method depending if I want to use a G/L account or bank as a balance account type.
In Register Customer Payment I don't choose that, it goes to my default bank.
When I want to choose a the type bank and also a company bank account, I go on Cash Receipt Journal.
When I want to post directly to a G/L a choose Sales Journal.

Well, the problem is, that I don't if I'm doing the things right. Because I can go on Sales Journal, create a Journal and set the balance account type to bank.
In the and of the day, I see different methods that do the same, and I can't explain why or when to use which.

So, there's the scenario here, we sell and item, we do sales quotes->sales order->sales invoice, then the customer will pay as he think it's easier.

1-He can pay by cash
2-He can pay by Debit/Credit Card
3-He can pay be bank transfer

So, which Journal I use for each case?

PS: Please don't take accounting rules in consideration, I'm not an accountant professional
PS: I'm using Microsoft Dynamics 365 BC on premises, version W1 14.10, I'm using Cronus International to Test, there's no development made in this test db

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Community Member on at

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RE: When to use Sales Journal, Cash Receipt Journal and Register Customer Payment?

Belarmino,

Not sure what version you are using but I will explain this way... Sales Journal I would use to record Invoices and Credit Memos. I would use the Cash Receipt Journal to record Payments. As for Register Customer Payments this is a very simple page that shows you all Customer Document that you can enter payments made by the Customer against Invoice and Credit Memos. I like the page because it is a simpler way of Applying Documents to Payments.

Thanks,

Steve

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Belarmino Vicenzo 70 on at

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RE: When to use Sales Journal, Cash Receipt Journal and Register Customer Payment?

Deposit module is only available in us versions.

Replacing the deposit, I would use Sales Journals for check/cash taken send or deposit to a bank?

In the standard dynamics bc here, in CRONUS International, for CRJ there's a bank journal option

So that means that CRJ is to be used with bank payments?

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Ben Baxter 6,150 Super User 2025 Season 2 on at

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RE: When to use Sales Journal, Cash Receipt Journal and Register Customer Payment?

I would suggest using the Deposits module for any checks/cash taken to a bank or remote deposited to a bank. This way you have a matching deposit in BC for the deposit to the bank.

I would suggest using the Cash Receipt Journal for all non-deposit entries such as ACH, wires, or manual credit card transactions (assuming you don't have an Extension for processing cards).

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