Purchasing card

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Posted on by ankag

Hi all,

I am looking at the functionality of purchasing card in D365 from https://docs.microsoft.com/en-us/dynamics365/finance/public-sector/purchasing-cards.

I could understand how the invoicing process will work for P-card but I couldn't understand the end result.

So, when an invoice is posted for the total amount received from financial institution then the voucher will be clearing a/c.........dr To, Vendor 1 a/c ....cr

Then when user's will post the actual vendor invoices then the entries will be cost a/c......dr To, actual vendor a/c....cr

While payment run both the vendor account are reflecting for payment which shouldn't be the case.

If this is done then how clearing account will be zero? Is there something that I am missing?

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saurabh bharti 15,039 Moderator on at

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is it because one clearing account will be settled with employee payments?

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ankag 79 on at

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Hi Saurabh,

No, it won't be settled with employee payments.

The requirement is that we will have purchasing card monthly bill received from the financial institution so we need to record the total amount for payment which I think will be managed by Balance off invoice type as mentioned in the article. So first at this point what should be selected on the invoice line item as it can't be actual expense.

Secondly, to book the actual expense against the cards we will have to post invoices with type as Record Purchase and associate the balance off invoice with this invoice. This invoice will not only have actual cost account but will also have vendor which won't be financial institution. Then how this vendor balance will be adjusted automatically ?

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Ludwig Reinhard Microsoft Employee on at

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Hi ankag,

Can't you achieve this simply by making use of a special method of payments that posts to a specific vendor/liability account?

That is, assume that you purchase something with the card then you post

DR: Expense

CR: Liability vendor from which you purchased the stuff

Then you create a payment run, which posts

DR: Liability vendor from which you purchased the stuff

CR: Liability card provider

Finally, when the card provider deducts the money you post a bank statement, which posts

DR: Liability card provider

CR: Bank

Best regards,

Ludwig

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ankag 79 on at

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Hi Ludwig,

Thanks for your suggestion but the issue is that we need to maintain p-card details in D365 and associate those with expenses to track the card which was used for payment. Secondly, it may happen that we have received invoice from financial institution on 30th July but user's have not recorded the expense in D365 until then but payment can't be delayed.

Secondly, generally user's wait for the month end to capture all card spends together

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Ludwig Reinhard Microsoft Employee on at

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Hi ankag,

I think the last two points that you mentioned are independent of the way how you record your card expense.

No 1:

... we have received invoice from financial institution on 30th July but user's have not recorded the expense in D365 until then but payment can't be delayed

Here you simply post the bank deduction against the liability (vendor) account of the card provider. Later on you can record the expense and make the 'payment', which is basically a transfer between vendor accounts.

No 2:

... generally user's wait for the month end to capture all card spends together

Also this does not depend on whether you use the card functionality or whether you post your expenses as usual with a special method of payment.

The only thing you need to think about is how to track and record the card details when you record the expense. For that reason, you could e.g. use the description field, a findim, a reason code, etc.

Best regards,

Ludwig

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ankag 79 on at

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Hi Ludwig,

That is actually a good option and we will keep this an alternative solution.

Is there any other link that you might know of which can give a better idea about this P-card functionality released by Microsoft ?

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Ludwig Reinhard Microsoft Employee on at

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Hi ankag,

I have not found much about it.

You can probably check out MS learn to see if you can find something in addition there.

Best regards,

Ludwig

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pankaj039 15 on at

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Hi Ankag,

Did you found further details on the standard Pcard fucntionality.

I am also facing the same issue, with respect to settlement of invoices. Appreciate if you can share your finding in same.

Thanks,

Pankaj

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Ravi Goyal 14 on at

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Somewhere in between there is a note in the article. This means that no vendor liability will be there for goods and services vendor.

Note

The posting definition that you select must be set up to record the purchase, but not to post to Accounts payable. Otherwise, a payment will be made to the vendor who provided the goods or services that were procured by using the purchasing card.

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