Receivables and Payables

Checking and managing settlements with buyers and suppliers can be cumbersome and time-consuming. The Dynamics NAV system provides a number of functionalities that aim to improve these processes.

Balance Confirmation of Customer/Vendor

At the end of each financial year or, if necessary, another accounting period, companies create receivables and liabilities statements to confirm them with buyers and suppliers. Buyers and suppliers are required to confirm or reject them on the basis of their own records of receivables and liabilities. As part of the Microsoft Dynamics NAV system, buyer and supplier balance confirmation reports are available that present the status of receivables or liabilities for a selected day.

Pro-forma Sales Invoice

Microsoft Dynamics NAV provides a solution that allows you to print a pro forma invoice to ordering a sale. Pro forma sales invoices are issued before the final sale invoicing. They are applicable in two situations:
  • on the basis of the pro-forma invoice received, the buyers make prepayments for the order. The pro-forma invoice is in this situation a document confirming the amount of the amount due to be paid in advance;
  • a pro-forma invoice is issued in a transaction for the sale of products to countries that are not members of the European Union. In this situation, a pro-forma invoice is delivered to the Customs Office to prepare the SAD document.

Choosing a Bank Account on Sales Invoices

A lot of companies have many bank accounts in many different banking institutions, which allows them to reduce the costs of servicing financial transactions. Microsoft Dynamics NAV has the option of choosing a bank account (from among accounts defined in the system) whose data is to be printed on sales documents.

Interest Notes and Prompts/Requests for Payment

The ERP system allows you to generate prompts and interest notes. The purpose of the prompts is to get buyers to pay the overdue amounts and inform them about the additional fees they are required to pay. If the buyer does not want to pay the overdue amount after receiving the prompt, an interest note is generated, which includes interest and / or additional fees. Interest can also be added directly to the prompts.

Correcting Notes

In accordance with Polish law, if you receive a VAT invoice with minor errors (eg a mistake in the buyer’s address), companies have the option of issuing a correcting note. Microsoft Dynamics NAV includes a tool for issuing a correction note in which you can enter incorrect data and correct data that should be in the received document.

Adjusting Sales Invoice

In a situation when it is necessary to correct sales documented with a sales invoice, companies usually issue a corrective invoice for sales. As part of the ERP system, simplifications in the creation of sales correction invoices have been added, including:

  • lines Before and After;
  • correction types controlling the correctness of introduced changes;
  • the possibility of issuing one invoice correcting sales to many sales invoices.

Settlement of Employee Advance

Most companies pay employees advance payments for company purchases made by employees. They are settled later with invoices confirming the purchase. The handling of the settlement process is carried out in one stage (by making one booking).

Different G/L Accounts for Receivables and Liabilities

Each buyer (supplier) usually has one file defined in the system. It can be linked to one accounting group of the buyer (supplier), i.e. with one account G/G of receivables (liabilities). However, it often happens that the receivables (liabilities) of one buyer (supplier) should be posted to different K/G accounts. It depends on the type of receivables (liabilities). An example are the liabilities resulting from the current operations and paid deposits. Microsoft Dynamics NAV includes the facilitation of handling various types of receivables (liabilities) in the form of substitutes of accounting groups. The facilitation consists in the fact that the buyer (supplier) file is assigned a default accounting group, which is copied to all documents, but the user can change this group in the entered document, without changing the buyer’s default accounting group (supplier) in his file.

Debt Collection

Receivables management additionally has the function of debt collection management, which allows you to follow time prompts and interest notes. The function also includes an option to check whether amounts due are transferred on time. If there are no fees due within due date, please specify when and how to send the prompts. You can also charge contractors with interest and/or fees.

Compensation of Buyers and Suppliers

In Microsoft Dynamics NAV, contractors are defined as buyers or suppliers, depending on what kind of transactions are carried out with them. However, it sometimes happens that one contractor is involved in purchase and sales transactions. Then it is necessary to register his data twice: once as a buyer and once as a supplier. Liabilities and receivables, even of one contractor, are recorded without any mutual link, hence the need to offset liabilities with liabilities. In addition, the ERP system enables current control of the balance of receivables / liabilities and their compensation using the link between the buyer’s file and the card catalog of one contractor’s supplier via the contact file. The following additions make it easier to settle the receivables and liabilities of one contractor:

    • wyświetlanie salda jako dostawca/nabywca – w kartotece nabywcy widoczne jest saldo zobowiązań, a w kartotece dostawcy widoczne jest saldo należności;
    • displaying the balance as a supplier / buyer – in the buyer’s file, the balance of liabilities is visible, and the balance of receivables is visible in the supplier’s file;
    • sugerowanie i księgowanie kompensaty – dostępne są funkcje ułatwiające przygotowanie księgowań kompensujących należności i zobowiązania jednego kontrahenta;
    • suggesting and accounting for compensation – functions facilitating the preparation of postings compensating for receivables and liabilities of one counterparty are available;
    • wspólne potwierdzenie salda – w dokumencie Potwierdzenie salda nabywcy jest możliwość uwzględnienia zobowiązań kontrahenta, a w dokumencie Potwierdzenie salda dostawcy jest możliwość uwzględnienia jego należności.
    • joint confirmation of the balance – in the document Confirmation of the buyer’s balance, it is possible to take into account the contractor’s obligations, and in the document Confirmation of the supplier’s balance is the possibility to take into account his receivables.

Interest Rates

The amount of interest rates for calculating interest on late payments may vary in value over time. In the ERP system, a mechanism for calculating interest at a different rate was prepared, depending on the period in which the receivables are overdue.