Search icon CANCEL
Arrow left icon
Explore Products
Best Sellers
New Releases
Books
Videos
Audiobooks
Learning Hub
Conferences
Free Learning
Arrow right icon
Microsoft Dynamics NAV 2016 Financial Management
Microsoft Dynamics NAV 2016 Financial Management

Microsoft Dynamics NAV 2016 Financial Management: Master the world of financial management with Microsoft Dynamics NAV 2016 , Second Edition

Arrow left icon
Profile Icon Nicolàs Lorente Profile Icon Lorente Profile Icon Bala
Arrow right icon
Free Trial
Full star icon Full star icon Full star icon Half star icon Empty star icon 3.3 (7 Ratings)
Paperback Jan 2017 222 pages 2nd Edition
eBook
NZ$39.99 NZ$57.99
Paperback
NZ$71.99
Subscription
Free Trial
Arrow left icon
Profile Icon Nicolàs Lorente Profile Icon Lorente Profile Icon Bala
Arrow right icon
Free Trial
Full star icon Full star icon Full star icon Half star icon Empty star icon 3.3 (7 Ratings)
Paperback Jan 2017 222 pages 2nd Edition
eBook
NZ$39.99 NZ$57.99
Paperback
NZ$71.99
Subscription
Free Trial
eBook
NZ$39.99 NZ$57.99
Paperback
NZ$71.99
Subscription
Free Trial

What do you get with a Packt Subscription?

Free for first 7 days. $19.99 p/m after that. Cancel any time!
Product feature icon Unlimited ad-free access to the largest independent learning library in tech. Access this title and thousands more!
Product feature icon 50+ new titles added per month, including many first-to-market concepts and exclusive early access to books as they are being written.
Product feature icon Innovative learning tools, including AI book assistants, code context explainers, and text-to-speech.
Product feature icon Thousands of reference materials covering every tech concept you need to stay up to date.
Subscribe now
View plans & pricing
Table of content icon View table of contents Preview book icon Preview Book

Microsoft Dynamics NAV 2016 Financial Management

Chapter 2. Managing Payments and Banks

The sales and purchase cycle does not finish after the goods are shipped, or the services are provided, and the invoice has been issued. After that, the company has to charge for items delivered and has to pay for services received.

The management of advanced payments, cash payments, or deferred payments is of vital importance for the company. In this chapter, we will learn how to do the following:

  • Manage different payment methods such as payment registrations
  • Handle incoming and outgoing payments in NAV
  • Import bank reconciliation

Managing due dates

When you start working with a new customer or vendor, you reach an agreement with them on when are invoices due. On the Payments tab of the customer and vendor card, you select the Payment Term tab that suits the agreement. After that, the program will automatically calculate the due date when you create an invoice.

Payment terms

The Payment Terms page contains one line for each set of Payment Terms the company uses. You can create as many payment terms as you need.

Every set of payment terms must contain a Due Date Calculation formula that the program uses together with the document date of the invoice to calculate the due date. In addition, you can also specify a Discount Date Calculation formula and a Discount % that will be used to calculate discounts on the basis of early payments.

Navigate to Departments/Financial Management/Receivables/Setup to see the full list, which is shown in the following screenshot:

Payment terms

The payment term code is assigned to each customer by...

Using credit cards and other payment methods

Different payment methods, used both by customers and vendors, can be defined at Departments/Financial Management/Receivables/Setup/Payment Methods.

Using credit cards and other payment methods

Note that both CASH and CREDITCARD have a Bal. Account No. defined. When you post an invoice with one of the payment methods selected, the system will create and post the payment against the invoice, so you don't have to manually do it later on. This is useful when the payment is done at the same time the invoice is raised.

When you use the credit card payment method in a sales order or invoice, you have to specify which credit card will be used. Credit cards are created on the customer card, through the Credit Cards - Credit Cards action found on the ribbon. Information commonly required for credit cards has to be filled in, such as the card type, the holder's name, the card number, and the expiry date. Once the credit card is selected, an authorization against the total invoice amount...

Posting payments

When you pay or are being paid, you need to register the transaction in your system, no matter what method you have used. To do so, you use the Cash Receipt Journal window or the Payment Journal window. Both work the same way, but the Payment Journal can also be used to print checks. To post a payment, you need to inform:

  • The customer that is paying you
  • The bank account that they used to make the payment
  • The invoice that is being paid
  • Consider the following example:

Imagine that customer 20000, Selangorian Ltd. has paid us for invoice 103032, which was due on 02/09/2017. Let's follow the steps needed to post the payment:

  1. Access the Cash Receipt Journal window from Journals/Cash Receipt Journals.
  2. Select the BANK section and double-click on it.
  3. Create a new line on the journal with the following information:

    Posting Date

    Document Type

    Document No.

    01/26/2017

    Payment

    This gets filled by a series number.

  4. To indicate the customer that is paying:

    Account Type

    ...

Customer balances

The balance is the total amount a customer owes you or you owe to a vendor. Customer and vendor balances can be seen on their card through a field called Balance (LCY). LCY stands for Local Currency. This means that, regardless of the currency used, amounts are always translated to your local currency.

To learn the details of the balance amount, you can click on the amount and the corresponding ledger entries will be shown. This can be seen in the following screenshot:

Customer balances

As you can see, customer 20000, Selangorian Ltd. has seven pending invoices. Two of them are already due (they are shown in red) and invoice 00-8 has been partially paid (note that the remaining amount is lower than the original amount).

Which invoice has been paid?

Customer 20000, Selangorian Ltd. has had many other transactions in the past. In the previous screenshot, we just viewed open transactions, but we can see them all by going back to the card and clicking on Ledger Entries in the Navigate...

Managing due dates


When you start working with a new customer or vendor, you reach an agreement with them on when are invoices due. On the Payments tab of the customer and vendor card, you select the Payment Term tab that suits the agreement. After that, the program will automatically calculate the due date when you create an invoice.

Payment terms

The Payment Terms page contains one line for each set of Payment Terms the company uses. You can create as many payment terms as you need.

Every set of payment terms must contain a Due Date Calculation formula that the program uses together with the document date of the invoice to calculate the due date. In addition, you can also specify a Discount Date Calculation formula and a Discount % that will be used to calculate discounts on the basis of early payments.

Navigate to Departments/Financial Management/Receivables/Setup to see the full list, which is shown in the following screenshot:

The payment term code is assigned to each customer by filling...

Using credit cards and other payment methods


Different payment methods, used both by customers and vendors, can be defined at Departments/Financial Management/Receivables/Setup/Payment Methods.

Note that both CASH and CREDITCARD have a Bal. Account No. defined. When you post an invoice with one of the payment methods selected, the system will create and post the payment against the invoice, so you don't have to manually do it later on. This is useful when the payment is done at the same time the invoice is raised.

When you use the credit card payment method in a sales order or invoice, you have to specify which credit card will be used. Credit cards are created on the customer card, through the Credit Cards - Credit Cards action found on the ribbon. Information commonly required for credit cards has to be filled in, such as the card type, the holder's name, the card number, and the expiry date. Once the credit card is selected, an authorization against the total invoice amount is required...

Posting payments


When you pay or are being paid, you need to register the transaction in your system, no matter what method you have used. To do so, you use the Cash Receipt Journal window or the Payment Journal window. Both work the same way, but the Payment Journal can also be used to print checks. To post a payment, you need to inform:

  • The customer that is paying you

  • The bank account that they used to make the payment

  • The invoice that is being paid

  • Consider the following example:

Imagine that customer 20000, Selangorian Ltd. has paid us for invoice 103032, which was due on 02/09/2017. Let's follow the steps needed to post the payment:

  1. Access the Cash Receipt Journal window from Journals/Cash Receipt Journals.

  2. Select the BANK section and double-click on it.

  3. Create a new line on the journal with the following information:

    Posting Date

    Document Type

    Document No.

    01/26/2017

    Payment

    This gets filled by a series number.

  4. To indicate the customer that is paying:

    Account Type

    Account No...

Customer balances


The balance is the total amount a customer owes you or you owe to a vendor. Customer and vendor balances can be seen on their card through a field called Balance (LCY). LCY stands for Local Currency. This means that, regardless of the currency used, amounts are always translated to your local currency.

To learn the details of the balance amount, you can click on the amount and the corresponding ledger entries will be shown. This can be seen in the following screenshot:

As you can see, customer 20000, Selangorian Ltd. has seven pending invoices. Two of them are already due (they are shown in red) and invoice 00-8 has been partially paid (note that the remaining amount is lower than the original amount).

Which invoice has been paid?

Customer 20000, Selangorian Ltd. has had many other transactions in the past. In the previous screenshot, we just viewed open transactions, but we can see them all by going back to the card and clicking on Ledger Entries in the Navigate tab.

To see...

Payment registration


The payment registration functionality is a unique method of handling customer receipts without creating entries through the Cash Receipt Journal. This functionality is designed to support users in tasks involved in balancing internal accounts, using actual cash figures to ensure effective collection from customers. To perform this, we have to perform the following steps:

  1. Go to Departments/Financial Management/Cash Management/ Payment Registration .

  2. Set up Payment Registration.

  3. Change Amount Received or Date Received: The Payment Registration window shows all open customer ledger entries. Normally, you only have to mark the entries, post them, and then you are done.

  4. Lump Payment: This covers multiple invoices for one customer with a single payment.

  5. Finance charge for overdue amounts: A Finance Charge Memo window can be created directly from the Payment Registration window by selecting the Finance Charge Memo function.

  6. Handling payment discounts: When a payment...

Payment reconciliation


A payment reconciliation journal is where we specify payments, either incoming from customers or outgoing to vendors, that have been recorded as transactions on your electronic bank site and that need to be applied to their related open entries.

You can perform the following main activities in the Payment Reconciliation Journal window:

  • Import files with bank transactions for payments that have been made to or from your bank account and then automatically apply the payments to their related open entries.

  • Review and manually apply payments that were applied automatically to wrong open entries, or were not applied at all, from the Payment Reconciliation Journal window, shown as follows:

Payment application rules


In the Payment Application Rules window, you set up rules to govern how payments should be automatically applied to their related open entries when you use the Apply Automatically function in the Payment Reconciliation Journal window. For this, refer to the following screenshot:

Left arrow icon Right arrow icon

Key benefits

  • • Familiarize yourself with Dynamics NAV and get up to date with the latest release – this is an invaluable tool for financial management
  • • Learn how to use reporting tools that will help you to make the right decisions at the right time
  • • Explore features inside the sale and purchase areas as well as functionalities including payments, budgets, cash flow, fixed assets, and business intelligence

Description

Microsoft Dynamics NAV is a global Enterprise Resource Planning (ERP) solution that provides small and mid-size businesses with greater control over their finances and a way to simplify their supply chain, manufacturing, and operations. Microsoft Dynamics NAV Financial Management explains all you need to know in order to successfully handle your daily financial management tasks. This book walks you through all the improvements in the latest release and shows you how to apply them in your workplace. You will learn about functionalities including sales and purchase processes, payments, bank account management, reporting taxes, budgets, cash flow, fixed assets, cost accounting, inventory valuation, workflows, sending and receiving electronic documents, and business intelligence. This book comprehensively covers all the financial management features inside the latest version of Dynamics NAV and follows a logical schema. By the time you’re finished this book you will have learned about budgets, cash flow management, currencies, intercompany postings, and accounting implications in areas such as jobs, services, warehousing, and manufacturing.

Who is this book for?

This book will appeal to financers and accountants who are using Dynamics NAV as their ERP and financial management system. Dynamics NAV consultants and project managers will find it useful for their daily work.

What you will learn

  • • Handle complete business processes for purchases and sales in Dynamics NAV.
  • • Use the banking features and the reconciliation process to gain greater insights into a company's financial status.
  • • Report data in a meaningful way that provides the company with insightful analysis.
  • • Set up dimensions and link them with master tables and journals.
  • • Work with multi-currency and intercompany postings. Receive and send documents electronically.
  • • Manage complete Fixed Asset by Setup, transactions, budgets, and Fixed Asset Reporting.

Product Details

Country selected
Publication date, Length, Edition, Language, ISBN-13
Publication date : Jan 06, 2017
Length: 222 pages
Edition : 2nd
Language : English
ISBN-13 : 9781786469496
Vendor :
Microsoft

What do you get with a Packt Subscription?

Free for first 7 days. $19.99 p/m after that. Cancel any time!
Product feature icon Unlimited ad-free access to the largest independent learning library in tech. Access this title and thousands more!
Product feature icon 50+ new titles added per month, including many first-to-market concepts and exclusive early access to books as they are being written.
Product feature icon Innovative learning tools, including AI book assistants, code context explainers, and text-to-speech.
Product feature icon Thousands of reference materials covering every tech concept you need to stay up to date.
Subscribe now
View plans & pricing

Product Details

Publication date : Jan 06, 2017
Length: 222 pages
Edition : 2nd
Language : English
ISBN-13 : 9781786469496
Vendor :
Microsoft

Packt Subscriptions

See our plans and pricing
Modal Close icon
$19.99 billed monthly
Feature tick icon Unlimited access to Packt's library of 7,000+ practical books and videos
Feature tick icon Constantly refreshed with 50+ new titles a month
Feature tick icon Exclusive Early access to books as they're written
Feature tick icon Solve problems while you work with advanced search and reference features
Feature tick icon Offline reading on the mobile app
Feature tick icon Simple pricing, no contract
$199.99 billed annually
Feature tick icon Unlimited access to Packt's library of 7,000+ practical books and videos
Feature tick icon Constantly refreshed with 50+ new titles a month
Feature tick icon Exclusive Early access to books as they're written
Feature tick icon Solve problems while you work with advanced search and reference features
Feature tick icon Offline reading on the mobile app
Feature tick icon Choose a DRM-free eBook or Video every month to keep
Feature tick icon PLUS own as many other DRM-free eBooks or Videos as you like for just NZ$7 each
Feature tick icon Exclusive print discounts
$279.99 billed in 18 months
Feature tick icon Unlimited access to Packt's library of 7,000+ practical books and videos
Feature tick icon Constantly refreshed with 50+ new titles a month
Feature tick icon Exclusive Early access to books as they're written
Feature tick icon Solve problems while you work with advanced search and reference features
Feature tick icon Offline reading on the mobile app
Feature tick icon Choose a DRM-free eBook or Video every month to keep
Feature tick icon PLUS own as many other DRM-free eBooks or Videos as you like for just NZ$7 each
Feature tick icon Exclusive print discounts

Frequently bought together


Stars icon
Total NZ$ 251.97
Microsoft Dynamics NAV 2016 Financial Management
NZ$71.99
Mastering Microsoft Dynamics NAV 2016
NZ$89.99
Extending Microsoft Dynamics NAV 2016 Cookbook
NZ$89.99
Total NZ$ 251.97 Stars icon

Table of Contents

8 Chapters
1. The Sales and Purchase Processes Chevron down icon Chevron up icon
2. Managing Payments and Banks Chevron down icon Chevron up icon
3. Accounting Processes Chevron down icon Chevron up icon
4. Reporting and Business Intelligence Chevron down icon Chevron up icon
5. Foretelling - Budgeting and Cash Flow Management Chevron down icon Chevron up icon
6. Financial Management Setup Chevron down icon Chevron up icon
7. Other Financial Functionalities Chevron down icon Chevron up icon
8. Fixed Asset Setup and Transactions Chevron down icon Chevron up icon

Customer reviews

Top Reviews
Rating distribution
Full star icon Full star icon Full star icon Half star icon Empty star icon 3.3
(7 Ratings)
5 star 57.1%
4 star 0%
3 star 0%
2 star 0%
1 star 42.9%
Filter icon Filter
Top Reviews

Filter reviews by




Mrs. N. Artamonova May 28, 2019
Full star icon Full star icon Full star icon Full star icon Full star icon 5
I always worked with software other than MS Dynamics. So to find out about functionality and getting familiarised with the settings and general principles of the software I found the book very useful. It does help if you know how accounting works and what finance department does, order to payment cycle namely.So if you never worked with MS Dynamics, load it to Kindle (preferably on tablet to see tables and images) and teach yourself basics and a bit beyond.I don't think the book is of any use to developers or more experienced users.
Amazon Verified review Amazon
Mohamed Tolba May 03, 2017
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Excellent book, has helped me alot to start with and understand Navision, simple and direct to the point.
Amazon Verified review Amazon
dimtsan Aug 19, 2017
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Great Book. I strongly recommend it to all Dynamics users. It describes perfectly all topics analyzing in depth all main aspects.
Amazon Verified review Amazon
Karthick Rajkumar Aug 14, 2019
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Useful
Amazon Verified review Amazon
Mohamed Feb 24, 2018
Full star icon Empty star icon Empty star icon Empty star icon Empty star icon 1
Non! Ce ne vaut pas le prix
Amazon Verified review Amazon
Get free access to Packt library with over 7500+ books and video courses for 7 days!
Start Free Trial

FAQs

What is included in a Packt subscription? Chevron down icon Chevron up icon

A subscription provides you with full access to view all Packt and licnesed content online, this includes exclusive access to Early Access titles. Depending on the tier chosen you can also earn credits and discounts to use for owning content

How can I cancel my subscription? Chevron down icon Chevron up icon

To cancel your subscription with us simply go to the account page - found in the top right of the page or at https://subscription.packtpub.com/my-account/subscription - From here you will see the ‘cancel subscription’ button in the grey box with your subscription information in.

What are credits? Chevron down icon Chevron up icon

Credits can be earned from reading 40 section of any title within the payment cycle - a month starting from the day of subscription payment. You also earn a Credit every month if you subscribe to our annual or 18 month plans. Credits can be used to buy books DRM free, the same way that you would pay for a book. Your credits can be found in the subscription homepage - subscription.packtpub.com - clicking on ‘the my’ library dropdown and selecting ‘credits’.

What happens if an Early Access Course is cancelled? Chevron down icon Chevron up icon

Projects are rarely cancelled, but sometimes it's unavoidable. If an Early Access course is cancelled or excessively delayed, you can exchange your purchase for another course. For further details, please contact us here.

Where can I send feedback about an Early Access title? Chevron down icon Chevron up icon

If you have any feedback about the product you're reading, or Early Access in general, then please fill out a contact form here and we'll make sure the feedback gets to the right team. 

Can I download the code files for Early Access titles? Chevron down icon Chevron up icon

We try to ensure that all books in Early Access have code available to use, download, and fork on GitHub. This helps us be more agile in the development of the book, and helps keep the often changing code base of new versions and new technologies as up to date as possible. Unfortunately, however, there will be rare cases when it is not possible for us to have downloadable code samples available until publication.

When we publish the book, the code files will also be available to download from the Packt website.

How accurate is the publication date? Chevron down icon Chevron up icon

The publication date is as accurate as we can be at any point in the project. Unfortunately, delays can happen. Often those delays are out of our control, such as changes to the technology code base or delays in the tech release. We do our best to give you an accurate estimate of the publication date at any given time, and as more chapters are delivered, the more accurate the delivery date will become.

How will I know when new chapters are ready? Chevron down icon Chevron up icon

We'll let you know every time there has been an update to a course that you've bought in Early Access. You'll get an email to let you know there has been a new chapter, or a change to a previous chapter. The new chapters are automatically added to your account, so you can also check back there any time you're ready and download or read them online.

I am a Packt subscriber, do I get Early Access? Chevron down icon Chevron up icon

Yes, all Early Access content is fully available through your subscription. You will need to have a paid for or active trial subscription in order to access all titles.

How is Early Access delivered? Chevron down icon Chevron up icon

Early Access is currently only available as a PDF or through our online reader. As we make changes or add new chapters, the files in your Packt account will be updated so you can download them again or view them online immediately.

How do I buy Early Access content? Chevron down icon Chevron up icon

Early Access is a way of us getting our content to you quicker, but the method of buying the Early Access course is still the same. Just find the course you want to buy, go through the check-out steps, and you’ll get a confirmation email from us with information and a link to the relevant Early Access courses.

What is Early Access? Chevron down icon Chevron up icon

Keeping up to date with the latest technology is difficult; new versions, new frameworks, new techniques. This feature gives you a head-start to our content, as it's being created. With Early Access you'll receive each chapter as it's written, and get regular updates throughout the product's development, as well as the final course as soon as it's ready.We created Early Access as a means of giving you the information you need, as soon as it's available. As we go through the process of developing a course, 99% of it can be ready but we can't publish until that last 1% falls in to place. Early Access helps to unlock the potential of our content early, to help you start your learning when you need it most. You not only get access to every chapter as it's delivered, edited, and updated, but you'll also get the finalized, DRM-free product to download in any format you want when it's published. As a member of Packt, you'll also be eligible for our exclusive offers, including a free course every day, and discounts on new and popular titles.