Introduction to the payment journal
- 8 min.
In the payment journal, you record all payments that you make to vendors and employees, and any refunds that you make to customers. If you are used to working with the standard payment journal, you will notice that Payment Management has extended the standard journal with additional functionality to improve the payment flow.
During the general setup of Payment Management, a payment journal with Payment Management enabled is automatically generated. To open the Payment Management payment journal:
- From the Role Center, search for Payment Journals and choose the related link.
- On the Payment Journal page, in Batch Name, select PMT.JNL.
- The Payment Management payment journal will open. From here you can make payment suggestions, and add, delete, or edit payment lines.
The Status column
The most important difference between the standard payment journal and the Payment Management enabled payment journal is how you can use the Status column. In the Status column, you can keep track of how far along a payment is in the process. Is it valid? Has it been sent? Has it been accepted in the bank, or has it already been paid?
| Status | Description |
|---|---|
| Not validated | The payment has not yet been validated by Payment Management. This can be due to missing or incorrect payment information. |
| Valid | The payment information has been validated, and the payment is ready to be sent to the bank using direct communication, or exported in a file. |
| Invalid | One or more errors have been found on the payment line. View the Payment File Errors FactBox for details on how to fix the errors. |
| Manual | Manual payments are created with the status Manual, because no validation against the bank's requirements to payment information is needed for these payments. All manual payments must be processed manually. |
| Sent | The payment has been exported in a file using manual communication. This is the final status for payments that are being processed using manual communication. |
| Processing | The payment has been sent to the bank using direct communication and is currently being processed in the bank. |
| Awaiting | The payment needs to be approved by a second approver in the bank. |
| Amount adjusted | The payment has been completed in the bank, and the amount of the payment line has been adjusted according to currency difference. If you paid an invoice in a foreign currency, the currency exchange rate used in Business Central might not be the same exchange rate used by the bank. Amount adjusted is only supported by a select number of status files. If such a status file has been ordered in your bank, the currency exchange rate, and thus the amount LCY, will be automatically updated on the payment line. This ensures that the correct amount LCY will be posted and you'll avoid exchange rate adjustments later, for example, during bank account reconciliation. |
| Rejected | The payment has been rejected by the bank. Payments can be rejected for several reasons, for example, if an approver in the bank has rejected the payment. In this case, you should consult with the approver in your company. Other reasons for a rejected payment could be errors detected on the payment, such as an invalid bank account number, or insufficient funds in your account. |
| Paid | The payment has been completed in the bank. |
You can update the status manually from the payment journal action bar, where you select Home > Update Status.
You can also set up the payment lines, related to a specific bank, to be updated automatically. On the relevant bank card, expand the Advanced FastTab and then in the Update Payment Journal Line Status, select Automatic.
Caution
If you need to change the payment information, or if you need to resend or reexport a payment that has already been sent or exported, you can reset the status of a payment line. However, if the payment has been sent by direct communication you must first contact the bank and cancel the payment before you reset the status. To reset the status of a payment line, in the Action bar, select Bank > Void Payments.
FactBoxes
On the Payment Journal page, in the FactBox pane, there are a few helpful FactBoxes with information related to the selected payment line.
- Payment Management displays the log of the payment line. To view a complete log of every update of the payment line status, select the status displayed in green text. This will open the page Credit Transfer Log from where you can also access the file archive for the payment line.
- Journal Line Details provides the most basic journal line details such as posting group, account, and balance account.
- Incoming Document Files displays any related incoming documents. To attach a file, or to view or edit an incoming document for the selected payment line, select Incoming Document Files.
- Payment File Errors provides the details of any errors on the payment line. If you resolve an error and update the payment line status, the error will be deleted from the list.
- Recipient Bank Details lists the details of the bank account you are making a payment to. In the Account Verification section, you can check the verification status of the bank account. To learn more about bank account verification, please refer to this article Bank Account Verification on Continia Docs.
- Applied Entries gives you an overview of the posted sales or purchase documents that the current payment line applies. If the entry has previously been approved in Expense Management or Document Capture, you can select the link in the Previously Approved column to see all the approval details.
- Payment Notification displays the email notification text that will be sent automatically upon payment to the receiver of the payment.