Payment Proposal not picking up Debit Notes or Payment on Account

(5) Share

Report

Posted on by CS-07100318-0

Hi All,

I am experienced in configuration and use of AX 2012 but quite new to D365 FO.

We are upgrading our companies gradually from AX 2012 to D365 FO. We have come across an issue where vendor debit notes and vendor payments on account are not picked up by the payment proposal wizard where they were in AX2012. As an example we post an AP invoice for 10,000 and then receive and post a debit note from the vendor for 1,000 due to defective product or service. When using the vendor payment proposal, it only picks up the 10,000 invoice for payment, it does not pick up the debit note and therefore proposes a payment for 10,000 for the invoice rather than automatically including the debit note.

Is this a setting or parameter somewhere that I am missing, or is this a change in the fundamental way that AP payment proposals work in D365 FO?

Thanks,

Craig.

I have the same question (0)

All responses (11)

Answers (4)

Sort by

Suggested answer

Bill Ngo 372 on at

Like (1)

Report
Copy link

Link copied!

Hi

if you receive and post invoice for the debit note, you should to settle AP invoice and Debit note first prior to using the vendor payment proposal.

Rgds,

Bill

Was this reply helpful? Yes No
Verified answer

BillurSamdancioglu 20,825 Most Valuable Professional on at

Like (1)

Report
Copy link

Link copied!

Hi,

Yes on the payment proposal, form, you can find the parameter.

Was this reply helpful? Yes No
Suggested answer

Bharath jain 1,567 Super User 2026 Season 1 on at

Like (2)

Report
Copy link

Link copied!

Hi Craig,

There is an option for settlement. When you post a debit note, you can settle it against the original invoice, which will reduce the balance of the original invoice.

If the settlement is not posted, you will have a parameter in the payment proposal form to include the debit note.

Regards,

Bharath Jain

Was this reply helpful? Yes No
CS-07100318-0 36 on at

Like (1)

Report
Copy link

Link copied!

Thanks for your responses. Unfortunately in our business process we don't want the debit note to be settled prior to the payment proposal. We need the debit note to be selected in the payment proposal at time of payment so that it correctly shows on the remittance advice that we are paying selected invoices and deducting the amount of the debit note from the payment.

Regarding the payment proposal parameters, I have posted the screen shot below of the parameters available to us in Dynamics 365 Finance and Operations, and I can't see the parameter on whether to include debit notes or not. We have even selected NO to the option to delete negative payments, but that doesn't help either. This parameter screen is the same for all legal entities we have migrated to D365 so far.

Was this reply helpful? Yes No
Verified answer

Frank Hamelly | MVP... 46,631 Moderator on at

Like (2)

Report
Copy link

Link copied!

Here's the parameter in Payment proposal. The wording is a little misleading, but "Negative payment" can mean a credit note, pre-payment, etc. If this flag is off, those transactions will be included in the proposal.

Was this reply helpful? Yes No
CS-07100318-0 36 on at

Like (1)

Report
Copy link

Link copied!

Thanks Frank. When we run we have that flag turned off but it still doesn't include the AP Debit notes into the proposal. Just to confirm, in your experience with the AP Payment Proposal it does include debit notes without issue? Are there any other settings anywhere you can think of that could be causing this?

I am not aware of any customizations in place that would affect this, but my next step is to look at that if this is working ok for everyone else.

Thanks.

Was this reply helpful? Yes No
Verified answer

CS-07100318-0 36 on at

Like (2)

Report
Copy link

Link copied!

We have determined the issue. In AX2012 the parameter below just limited the maximum value of an individual invoice being included in the payment proposal. In D365, if the value of this parameter is not zero, then the code below is called which deletes any debit note transactions from the payment proposal lines (debit notes have an amount >0 while invoices have amounts <0).

This explains why the parameters screen shot that Frank replied with worked for him, because this value was zero, whereas in my one it was set to a large amount in the same manner we did in AX2012.

Thanks all for your help.

Craig.

Was this reply helpful? Yes No
Bill Ngo 372 on at

Like (1)

Report
Copy link

Link copied!

Hi CS,

I would like to verify some more information:

- How you migrated your DB from 2012 to D365Fo? Auto upgraded by MS tool or create a new DB in D365FO and import DB by DMF?

- Your current vendor is not activated for Intercompany, right?

- In the All vendors form, when open Settle transactions form, have you seen these transactions for your vendor debit notes and vendor payments or not?

Last one is very importtant: Please describle where and how you create your vendor debit notes and vendor payments?

through:

- Vendor payment journal?

- PO return/PO with nagative Qty?

- General journal?

- and so on.

The more detail the more value.

Rgds,

Bill

Was this reply helpful? Yes No
Verified answer

Ramit Paul 22,805 Most Valuable Professional on at

Like (1)

Report
Copy link

Link copied!

Hi,

Please check if these transactions are "approved" to Yes, if not, please edit and make it "Approved" to YES,. see below, without this those wont come up in payment proposal.

Was this reply helpful? Yes No
Suggested answer

Bill Ngo 372 on at

Like (1)

Report
Copy link

Link copied!

Hi CS,

Cc Ramit,

As Ramit's suggestion is corrected, if your issue will be resolved. Then you need to double check your configuration on current default Journals. Make sure all debit notes and prepayment journals are setting up with "approved" status.

If you do not know how to check/configure please let me know.

Was this reply helpful? Yes No