On occasions, you may need to post a single bank ledger entry (deposit) that includes payments from multiple customers, all of which need to be applied to different transactions.
This situation is common when accepting payments from certain credit card companies, like American Express, which often batch multiple customer payments into one deposit in your bank account.
In this post, I’ll go through how to post these transactions in Business Central so your Bank Reconciliation matches your Bank Statement.
The Scenario
In this scenario, let’s say we’ve received three payments via American Express on the same day. Instead of depositing each payment individually, American Express has grouped the three payments together and deposited them into our bank account as a single total amount.
Please note that since this involves American Express, we would also need to account for any fees they deduct before depositing the total amount. However, I’ll cover how to handle those fees in a future post
The customer ledger entries for the three Sales Invoices I’ve received payment for are detailed below. As you can see they are Sales Invoices relating to three different customers.
Posting the Cash
My goal now is to post a single bank ledger entry that matches my bank statement while still applying it to the three different customers.
There are a few ways I could do this but I’m going to use the “Cash Receipt Journal”. (the good old fashioned way 😊)
I therefore enter the cash into the Cash Receipt Journal page as per below
To summarise, in step 1, I’ve entered all three customer lines and clicked “Apply Entries” and applied to the Invoices on each individual Customer.
In step 2, I’ve then balanced these entries with a single Bank Account line for the total amount.
As shown below, this process has produced a single Bank Account Ledger Entry, which I can now reconcile with my bank statement, reflecting exactly how the cash was deposited into my Bank Account
Now when I come to do my bank reconciliation in the system, Business Central matches my actual Bank Statement.
Conclusion
This was a quick post showing how to apply a single Cash Receipt to multiple customers. I could have used another page called “Bank Deposit” however I choose to use the trusty “Cash Receipt Journal”.
I’ve posted this because I’ve noticed that users often manually split and post the cash separately, so hopefully this will help someone else in the future.
If you lease a car through your business, you can only reclaim 50% of the input VAT on the lease cost unless you can demonstrate that it is used exclusively for business purposes. (i.e. a pool car or company van)
Therefore even though we still have to post the Purchase invoice at its full amount, including VAT, we can only reclaim a portion of that VAT. As a result, when posting the Purchase invoice we need a method to expense the amount of VAT we cant reclaim, while ensuring that only the reclaimable portion is included in the VAT Return.
In this post I’ll go through how you can configure VAT in Business Central to accommodate this using the “Non-Deductible VAT” feature.
VAT Setup
The first thing to do is to switch on the “Non-Deductible” feature via the “VAT Setup” page
Enabling this gives more features in the “VAT Posting Setup” page, which we will utilise and look at in more detail later.
VAT Product Posting Group
The next step is to create a new “VAT Product Posting Group” that we’ll select when posting our lease car Purchase Invoices.
In this case I’ll call is VAT20LEASE.
Assign VAT Product Posting Group to GL Code
Next I’ll assign this new VAT Product Posting Group to my Lease Vehicles GL code as per below:
This will now be selected by default when I use this GL code directly in a Purchase Invoice.
VAT Posting Setup
We’ll now add the new VAT Product Posting Group into our VAT Posting Setup.
Since we have switched on “Enable Non-deductible VAT” we have extra features we can utilise for this new VAT Business/Product combination as per below:
If we break this down we can see the following:
Firstly, now we have enabled the “Non-Deductible VAT” feature we have three new options. These are shown above is point 3, 4 and 5. (click to enlarge the image)
In point 3 we have the option to “Allow” non-deductible VAT on this VAT combination. If this is set to “Allow” you can specify the non-deductible percentage, which we have set to 50%. Finally in point 4 you can either select a GL code to post the non-deductible VAT, such as an “Irrecoverable VAT” GL code, or you can leave it blank, so the expense is posted to the same expense code used on the Invoice.
Post a Purchase Invoice
Now we have this all configured we’ll now create a Purchase Invoice for a lease car for £1000.00+£200.00 VAT, which totals £1200.00.
Remember, although we still have to pay £1200.00, we can only reclaim 50% of the VAT.
When entering the Purchase Invoice it shows as per below
If we click “Invoice > Statistics” we can see the full VAT amount of £200.00 but we also see that £100.00 is “Non-Deductible”
The VAT Entries for this Purchase Invoice also only record £100.00 to be reclaimed
And finally the GL Entries only show £100.00 hitting our VAT GL account, with the other £100.00 hitting the Lease car expense
Remember we could have specified an “Irrecoverable VAT” code in the “VAT Posting Setup” for this if we preferred.
VAT Statement
The final piece of the jigsaw to ensure we add the new combination on the VAT Statement so its included in our calculations and submission.
I therefore included it in the calculations so its picked up in the relevant boxes as per below
This may differ from your VAT statement as its taken from my demo and then I added the new VAT Product Posting Group
Conclusion
Previously we’d have had to manage this manually using journals however we can now utilise the “Non-Deductible” features to assist when posting Purchase Invoices for Lease Cars in Business Central.
Recently I needed to find out when an environment had been created in Business Central. In this post I’ll explain how this can be achieved via the “Operations” page in the Business Central Admin Centre.
The Admin Centre
The Business Central Admin Centre allows you to perform various administrative tasks on your Business Central environments, including creating new ones.
You can access this several ways, with the most common methods being via the “Settings” option in Business Central as per below
Alternatively you can add the word “Admin” to the end of the Business Central URL as shown below:
Please note in both cases you need special permissions to be able to access the Business Central Admin Centre. I explain more about this and the Admin Centre in general in this post and YouTube video
Once in the Admin Centre you can find out when an environment was created by clicking “Operations” (1), then selecting the environment you are interested in (2), next selecting “All” (3), and finally clicking “Filter” (4) as per below
Here I can now see that the environment was created on the 22nd of February 2024 and also which user created the environment.
You can also see other useful information like when the environment has been updated, when an app was installed, or an environment copied etc
Conclusion
This is a quick method for checking when an environment was created. Its also a great example of Microsoft responding to community input through the Microsoft Ideas site, where this idea was originally proposed. You can find the idea and Microsoft’s response here.
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