Written By Cheryl Shephard 

Processing customer payments in Business Central usually involves creating a Cash Receipt Journal and manually applying payments to invoices. However, the Register Customer Payments in Business Central feature provides a more streamlined alternative. This process consolidates open invoices into a single view, reduces manual entries, and automatically generates a posted cash receipt journal.

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Benefits of Register Customer Payments

Using Register Customer Payments instead of manually entering data in a cash receipts journal offers several advantages:

• Consolidated view of all open customer invoices
• Fewer manual data entries
• Automatic creation and posting of cash receipt journals
• Supports multiple customers in a single posting

For more details on standard payment processes, check Microsoft’s official documentation on Cash Receipts Journal.

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Payment Registration Setup

Before using this feature, configure the following:

Set the balancing account in the Setup configuration.

Specify the default journal batch.

How to Register Customer Payments

1. Open the Register Customer Payments page.
   • You can also access this from the Customer Card: select the customer, choose Actions, then Register Customer Payments.
2. The system will display a list of all outstanding invoices.
3. For each invoice, check the Payment Made box, verify the Date Received and Amount Received, and enter the External Document No. for the payment.
4. Click Preview Posting Payments to review entries before posting.
5. Click Post Payments to complete the process.

This generates one cash receipt journal line per invoice. The system supports concurrent posting for multiple customers.

Posting Lump Sum Payments

To post a lump sum payment:

• Select only one customer.
• Check all invoices for which payment is received.
• Post as a lump sum payment.

The Customer Ledger Entries will display a single payment reflecting the total of all selected invoices.

Limitations

• Payments must be posted to the same bank account. This may restrict users who operate multiple accounts.

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Checking Your Work

After posting payments, verify the entries in each ledger:

• Customer Ledger Entries: Updates customer records and reduces open receivable balances.
• Bank Account Ledger Entries: Records bank account activity (increase in cash).
• GL Ledger Entries: Debits the bank account and credits accounts receivable.

For further guidance on ledger entries, see Business Central Ledger Entries Overview.

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