How to set up payment methods in Dynamics 365 Business CentralOn November 18, 2019 by Raul Dinwiddie
Microsoft Dynamics 365 Business Central. Set up payment methods. In Business Central, we assign payment methods to customers to define how they will pay us, and to vendors to define how we prefer to pay them. Some typical payment methods are “on Account”, cash, cheque, and bank. This video shows how to set up a payment method. After we assign a payment method to a customer or vendor, all sales and purchase documents that we create for them will automatically use the payment method. However, we could change the payment method for an individual document. To set up a payment method, in the Search field we’ll enter “Payment Methods” and then choose the Payment Methods link in the search results. We’ll choose New to create a new payment method. The two required fields are Code and Description. Depending on the type of payment method and how we will use it, we can specify some additional settings. Let’s quickly walk through the options. The Balance Account Type field defines the account type, Bank or General Ledger Account, of the balancing entry when we use this payment method. The Balance Account Number defines the account number for the balancing entry. The Direct Debit checkbox specifies whether this payment method is used for direct debit collections. If we do allow direct debit, the Direct Debit Payment Terms Code is used to assign a payment term. The Payment Export Line Definition defines the data exchange definition used to export payments. And finally, the Bank data conversion Payment Type is used when exporting payment transactions by using the bank data conversion service. Now that we have a payment method, we can assign it to customers and vendors.