Introduction

There may be instances when you receive payments from a customer and need to account for bank fees. This is especially common with certain credit cards, like American Express.

In this post, I’ll walk you through how to record both the cash received and the fee while applying the full invoice amount.

The Scenario

In this example, we have a sales invoice for £1,200.00, which the client has paid using American Express. American Express has deducted a £50.00 fee, resulting in only £1,150.00 being deposited into our bank account.

We therefore need to account for 3 things:

1. The Cash Receipt of £1150.00
2. The Bank Fee of £50.00
3. Ensure the full Sales Invoice is applied

The third point is crucial, as the client has paid the invoice in full, even though we have only received a partial payment due to the bank fee deduction.

Walkthrough

First, here’s the customer ledger entry for the sales invoice that the customer has paid. As shown below, the invoice is for £1,200.00 and is currently fully outstanding.

As with many tasks in Business Central there are a number of different approaches I could take when posting the cash. However I’m going to use my good old friend the Cash Receipt Journal.

Once in the Cash Receipt Journal I’ll pickup the Customer and click “Apply Entries” as per below:

Next, I’ll apply the full amount of the Sales Invoice

Then, I’ll add the payment amount of £1150.00 and the Bank Fee of £50.00 as part of the same document number:

When I preview post this we can see the following entries

If we take a closer look at the G/L entries we can see Debtors being reduced by the full £1200.00, the Bank Account has an entry for £1150.00 and the Fee an entry of £50.00

We also have a Customer Ledger entry for the full amount along with a Bank Account Ledger Entry for £1150.00.

Finally, I’ll post the entry, and by reviewing the original Customer Ledger Entry for the Sales Invoice, we can see that it has been fully applied.

Conclusion

This post provides a straightforward method for handling bank fees on customer payments, ensuring that the sales invoice is fully applied and the correct amounts are recorded for both the bank reconciliation and bank fees.

Thanks for reading!

Introduction

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.

Thanks for reading!