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Customer Payment Terms COD with Cash Payment selected

  • 1.  Customer Payment Terms COD with Cash Payment selected

    SILVER CONTRIBUTOR
    Posted 26 days ago
    Hello,

    Can anyone share how D365 manages  "COD" payment terms with Cash payment selected and the g/l account is specified.

    Normally, our customer invoice posts an accounts receivable GL account which is cleared at a later date.   In the case of COD/Cash payments we do not want a posting made to AR since the customer is payment COD.
    In AX 2012, this setup would post to the cash account and would not post to AR however, I am not finding the same behavior in D365.   I have followed Microsoft documents but to no avail.

    I wonder if I am missing a setting.

    Would appreciate guidance if anyone has experience with COD/Cash settings.
    Thank you

    ------------------------------
    Anilda Pena
    Sr. IT Business Analyst
    Omniparts Automotive
    Franklin TN
    ------------------------------
    Academy - Online Interactive Learning from Experts


  • 2.  RE: Customer Payment Terms COD with Cash Payment selected

    SILVER CONTRIBUTOR
    Posted 26 days ago
    Edited by Shilpi Thakur 26 days ago
    In D365 for Terms of Payment = Cash. Check that you are giving the proper ledger account for cash sales entries.
    Terms of Payment

    This terms of payment =Cash  should either be attached to a customer or  be used when you are creating the sales order or free text invoice when the customer has different terms of payment. 

    Hope this helps.
    ------------------------------
    Shilpi Thakur
    Freelance AX/D365 Microsoft Consultant
    Dynact Consulting Ltd
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 3.  RE: Customer Payment Terms COD with Cash Payment selected

    SILVER CONTRIBUTOR
    Posted 23 days ago
    Shilpi -
    I originally set my terms of payment with a cash account and I expected it would DR the cash account as it did in AX however it was not the case.  Payment method was cash and I did not setup the Posting-Account type as bank.  I left it blank.  This was my expectation.

    ------------------------------
    Anilda Pena
    Sr. IT Business Analyst
    Omniparts Automotive
    Franklin TN
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 4.  RE: Customer Payment Terms COD with Cash Payment selected

    Posted 24 days ago
    Hi Anilda,

    Even with the COD setting the transaction will still be posted to the customer.  However what it will also do is immediately post the "payment" transaction.  So the impact to the customer ledger is $0.

    I always suggest for the ledger account to be a "staging" account.  What happens is that the invoice amount is posted to this account, This account would then be used by the users that post banking transactions later.

    Example

    Invoice Posted with COD

    DR Customer     $1,000
    CR   Revenue                $1,000

    DR  Ledger Account Set on COD Payment Term  $1,000
    CR Customer                                                                     $1,000

    So the customer is $0 balance but there is a $1,000 balance against the ledger account nominated in the COD payment term.

    Then when the payment is processed later, the users would use that ledger account as the offset to the payment.

    DR Bank  $1,000
    CR Ledger Account Set on COD Payment Term  $1,000

    Hope that helps.

    Regards
    Phil




    ------------------------------
    Phil Dawson
    Sunpork Fresh Foods Pty Ltd
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 5.  RE: Customer Payment Terms COD with Cash Payment selected

    SILVER CONTRIBUTOR
    Posted 23 days ago
    Phil -
    I appreciate your feedback.
    Would we use the Bridging posting setting and enter the "staging account" in the bridging account field?

    ------------------------------
    Anilda Pena
    Sr. IT Business Analyst
    Omniparts Automotive
    Franklin TN
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 6.  RE: Customer Payment Terms COD with Cash Payment selected

    SILVER CONTRIBUTOR
    Posted 23 days ago
    Phil - never mind my question as it relates to setting up payment method and not payment terms.

    ------------------------------
    Anilda Pena
    Sr. IT Business Analyst
    Omniparts Automotive
    Franklin TN
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 7.  RE: Customer Payment Terms COD with Cash Payment selected

    SILVER CONTRIBUTOR
    Posted 23 days ago
    Phil,

    I do not see where this posting is happening.
    DR  Ledger Account Set on COD Payment Term  $1,000
    CR Customer                                                                     $1,000

    I see where the customer account is being credited for the amount, but I do not see the DR to the ledger account I set on COD payment terms which is our cash account.

    I appreciate if you can share your thoughts what I am doing incorrectly.

    Thank you,

    ------------------------------
    Anilda Pena
    Sr. IT Business Analyst
    Omniparts Automotive
    Franklin TN
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 8.  RE: Customer Payment Terms COD with Cash Payment selected

    Posted 23 days ago
    Hi Anilda,

    Sorry, I probably wasn't clear.

    That transaction would be a separate transaction to post the payment.  It is not pat of the invoice posting.

    Where I have used this in the past the users responsible for posting the bank receipts would create and post these banking journals for COD type transactions.

    Regards
    Phil

    ------------------------------
    Phil Dawson
    Sunpork Fresh Foods Pty Ltd
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 9.  RE: Customer Payment Terms COD with Cash Payment selected

    SILVER CONTRIBUTOR
    Posted 24 days ago
    Edited by Shilpi Thakur 24 days ago
    Phil is right as the structure in D365 does not change.

    If you want to make the automated business process more efficient [depending if this meets your customer's business requirements], you can also look at using the Method of Payment = Cash.

    What this does is it automatically posts and settles the payment journal once the sales invoice is generated in D365, to the assigned bank as per the method of payment = Cash setup.


    Go to the 'General' tab.

    Account type – Select  "Bank".

    Payment account – Select the bank account to deposit the money into.

    Bank transaction type – Select the bank transaction type which is of name deposit to identify the deposit.

    Go to 'File formats' tab.

    Create and post draw journal automatically when posting invoices [Mark the Automatic posting] – Set to Yes.

    Name – Select a customer payment journal.

    The use of such a method of payment ignores the due date calculated through the terms of payment and posts the payment journal immediately after posting the invoice.

    For cash payment processing, a Free text invoice or a sales invoice may be used.


    Sales order invoice posting

    In parallel, a customer payment journal is posted for the customer.

    Check the customer transactions: The highlighted transaction below shows invoice and the payment voucher posted for this transaction and settled.



    ------------------------------
    Shilpi Thakur
    Freelance AX/D365 Microsoft Consultant
    Dynact Consulting Ltd
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 10.  RE: Customer Payment Terms COD with Cash Payment selected

    SILVER CONTRIBUTOR
    Posted 23 days ago
    Shilpi,

    Thank you for your feedback.

    I would either use payment method "Cash" with the setting you suggested or Payment terms "COD" setting the cash account?  Not both in one transaction, correct?  Just want to make sure my understanding is correct.


    ------------------------------
    Anilda Pena
    Sr. IT Business Analyst
    Omniparts Automotive
    Franklin TN
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 11.  RE: Customer Payment Terms COD with Cash Payment selected

    SILVER CONTRIBUTOR
    Posted 22 days ago
    You just add the Method of Payment = Cash in your sales transaction.

    The use of this method of payment ignores the due date calculated through the terms of payment and posts the payment journal immediately after posting the invoice.


    ------------------------------
    Shilpi Thakur
    Freelance AX/D365 Microsoft Consultant
    Dynact Consulting Ltd
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 12.  RE: Customer Payment Terms COD with Cash Payment selected

    Posted 14 days ago
    Hi Anilda,

    To understand your scenario better. You're using the COD payment term with cash as your payment method and a cash account with cash payment identified in your terms of payment form?

    Then what the system will do, is post a normal sales transaction with the relevant vouchers when you post a sales order/ free text invoice and immediately post the payment (Receipt) transaction so that the impact on your A/R is effectively 0.

    Best Regards,
    Nanditha

    ------------------------------
    Nanditha Kini Mukerjee
    Senior Manager- Presales
    Synoptek
    ------------------------------

    Academy - Online Interactive Learning from Experts


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