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

Payment tolerance functionality

(6) Share

Report

Posted on by SL-18091354-0

I am looking for help with the payment tolerance function. Most of our transactions are from the web and due to tax calculations, we often get a 0,01$ difference between the posted invoice and the payment (which is taken based on the amount of the preliminary sales invoice).

The payment tolerance is setup as follows in the General Ledger Setup:

The tolerance account is setup for each revenue account in the General Posting Setup:

The tolerance account is also setup in the Customer Posting Groups:

However, in the open customer entries (invoices, payments, finance charge memos), most of the entries have a tolerance of 0,00$ and some have other values (-1.00$ / 0.01$ / 1.00$). 1.00$ tolerances are mainly related to invoices that were uploaded with configuration packages on implementation day.

Even for those cases where the tolerance should have been applied, the transactions are still open with an outstanding balance:

I ran the Change Payment Tolerance action in the General Ledger Setup window with different values and it had no effect. No customer is blocked.

Q1: What configurations may I be missing?

Q2: I actually have over 7700 transactions with an open amount of 0,01$, how can I use the tolerance function to write them off all at once?

Categories:

Dynamics 365 Business Central

I have the same question (0)

All responses (5)

Answers (0)

Sort by

Suggested answer

YUN ZHU 100,974 Super User 2026 Season 1 on at

Like (3)

Report
Copy link

Link copied!

Hi, hope the following can give you some hints.

https://community.dynamics.com/blogs/post/?postid=2fbc2c71-f5f1-4028-b9d8-35d8ac3e69ae

https://archerpoint.com/dynamics-nav-2013-how-use-payment-tolerance-save-you-time/

Thanks.

ZHU

Was this reply helpful? Yes No
Suggested answer

Rishabh Kanaskar 6,225 Super User 2026 Season 1 on at

Like (8)

Report
Copy link

Link copied!

1. Make sure that Payment Tolerance Posting is not overridden on Customer Cards (check one sample customer).

Check Tolerance on Open Entries:

> Existing entries will not automatically recalculate unless you run Change Payment Tolerance for open entries.
> After you run it, check that the Max. Payment Tolerance field on the Customer Ledger Entries updates correctly.

2. Write-Off of 7,700 Transactions with $0.01 Balance
Since your entries are already posted, you can bulk-close them using Payment Tolerance or a Journal Adjustment:

Use Payment Tolerance Batch Action

> Go to Customer Ledger Entries.

> Filter for Remaining Amount = 0,01 (or -0,01).

> Select all filtered lines.

> Choose Process > Apply Entries.

> Use the Post Application function with Accept Payment Tolerance enabled.
> This will automatically write off the remaining $0.01 to the defined Sales Pmt. Tol. Account.

Note: If the entries still don’t close, run Change Payment Tolerance again and re-check the Max. Payment Tolerance field on those entries before applying.

Thanks

Rishabh

1 people found this reply helpful.

Was this reply helpful? Yes No
SL-18091354-0 18 on at

Like (0)

Report
Copy link

Link copied!

@RK-03060518-0 thanks for your answer. This is where I was going and I tried again following your insights. However, even after running the "Change payment tolerance" a couple times, it didn't update the open entries (payment tolerance isn't overriden on customers cards). They all stay at the original value:

Also, I'm not sure where I should find the process "Apply entries" for the batch application. Even when all the entries are selected, only individual entries per customer are shown on the "Apply customer entries" window.

If you could provide further guidance, it would be truly appreciated.

Thanks

Was this reply helpful? Yes No
Suggested answer

Nimsara Jayathilaka. 5,102 Super User 2026 Season 1 on at

Like (5)

Report
Copy link

Link copied!

Hi

You should first ensure that the Payment Tolerance Posting setting on Customer Cards is not overridden, then check tolerance on open entries by running Change Payment Tolerance to update the Max. Payment Tolerance field in Customer Ledger Entries. For bulk closing the 7,700 posted transactions with a $0.01 balance, filter the Customer Ledger Entries for remaining amounts of 0.01 or -0.01, select all lines, and use Process > Apply Entries with Accept Payment Tolerance enabled. This will write off the balance to the Sales Payment Tolerance account. If the entries still don’t close, rerun Change Payment Tolerance and verify the Max. Payment Tolerance field before reapplying.

Thanks

Nimsara

2 people found this reply helpful.

Was this reply helpful? Yes No
SL-18091354-0 18 on at

Like (0)

Report
Copy link

Link copied!

@Nimsara Jayathilaka. thank you for your insights.

The Change payment tolerance function did not update the tolerance on the open entries, even after multiple attemps. Since the value can be manually changed, I will try to "Modify in Excel".

However, I can't find where to use "Process > Apply Entries with Accept Payment Tolerance enabled" as you suggested. When I click on "Apply entries", I only get the window to apply manually the entries on a single customer.

Would you be able to provide further guidance?

Thanks

Was this reply helpful? Yes No