The other day, my colleague Krystal and I were discussing tips to share with all of you here on Let’s Talk NAV, and today’s article on Payment Methods was her idea. So thank you Krystal!
When you are buying or selling something, there are two key things that you have to know: “How will it be paid for”, and “When is the payment due”? In NAV, the “How” is defined as the Payment Method, and the “When” is defined as the Payment Term.
While setting up NAV, you have the ability to define multiple Payment Methods and Payment Terms to use on Sales and Purchase transactions.
Note: We will discuss Payment Terms (and NAV’s Date formulas, which every accounting user in NAV should learn about) in a separate post next week.
In the Classic Client, you can find the Payment Methods form in Administration > Application Setup > Financial Management > Payment Methods.
If you’re using the RoleTailored Client, go to Departments > Administration > Application Setup > Financial Management > Finance > Lists > Payment Methods.
The above screenshot is from the CRONUS USA, Inc. company in NAV 2009 R2 and has some pre-populated Payment Methods. If you do not have any existing payment methods setup in your company or want to add a new one, then you should at least populate the first two columns in your new record:
- Code: This column is mandatory and cannot be left blank. It will accept up to 10 alphanumeric characters.
- Description: This column allows for up to 30 alphanumeric characters, and gives the user an explanation of the Payment Method code.
- Bal. Account Type and Bal. Account No.: If you have done any journal entries in NAV, you have probably come across these columns before. When a Balancing Account Type and Balancing Account No. is selected, NAV automatically creates the reconciling / balancing journal line.In the context of Payment Methods, if the Bal. Account Type and Bal. Account No. fields are populated for a payment method code and this method is used on a document (for example, a Sales Order), upon posting this document NAV will automatically create a Payment entry and apply it to the posted document (in this example, the Posted Sales Invoice).This functionality is great when you are being paid in full at the time of sale. Some good examples of payment method types where this would be applicable are Cash (see the highlighted row in the screenshot a few paragraphs above) or Credit Card transactions – if credit card processing is being handled completely outside the realm of NAV.
- Payment Processor: This field is only available in NAV 2009 R2 and is part of NAV’s integration to Dynamics Online Payment Services (Dynamics OPS; Microsoft’s Credit Card processing module that integrates to NAV).Payment Processor is an option field with two choices: blank (default value) and Dynamics Online. Always select the blank option unless you are processing credit card payments in NAV through Microsoft’s Dynamics Online Payment Service.If you are creating a new Payment Method for Credit Card payments with Dynamics OPS, then select the Dynamics Onlineoption in the Payment Processor field.When this payment method is used on a Sales document, it will trigger the credit card processing functionality in NAV.
That’s it! Have a great weekend!