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Dynamics 365 CommunityForums Small and medium business | Business Central, N... How to Clear Accrual A...

Small and medium business | Business Central, N...

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How to Clear Accrual Account for Finance Charge Memos

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Posted on by MS@C

25

Hello,

If I am issuing finance charge memos, the gl entry is:

DR AR

CR Accrued Interest Receivable

If this finance memo charge is paid by the customer, when I complete the deposit application the gl entry is:

DR Bank

CR AR

How does the Accrued Interest Receivable get cleared? And how do I set this up to automatically clear when paid?

Thank you!

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Dynamics 365 Business Central

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TWBlaisdell Microsoft Employee on at

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Hello,

Thank you for posting on the Microsoft Dynamics 365 Busines Central Forum Page.

You could recommend this as additional functionlaity at the following link: experience.dynamics.com/.../

However, standard Business Central identifies the Accounts in the Customer Posting Group, which includes Accounts Receivables for the Debit side and the Credit Accounts for Fees and Interest separately designated, which are presumed income upon billing. The assumption is that the Interest and Fee income is recognized when billed.

To manage the Credit as an Accrued Interest earned and recognize upon payment, that would be a manual process under current design. There is not an Unrealized Interest and Fee income option currently in Microsoft Dynamics BUsiness Central or its predecessor NAV Verions when it comes to Finance Charges.

Sorry I dion't have a more complete solution at this time under current design.

Best Regards,

Tom

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John Ray Patajo 837 on at

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Hi,

You have to close it manually and there is no automatic entry to do this per standard.

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