NAV Coffee Break: Setting Up and Purchasing with Credit Cards in Dynamics NAV 2017
It is convenient to be able to purchase goods using a credit card in Dynamics NAV 2017. And while it is not difficult to do, here are a few necessary steps to the setup process that are critical before you can start making purchases. In this latest installment of our NAV Coffee Break video series, Gwen walks through each of these steps from creating a payment method to posting general ledger updates.
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For your reference, a transcript of this video follows:
Welcome to today’s coffee break. Today’s coffee break is on setting up and purchasing with credit cards.
So there are a lot of people who want to know how do you set it up in the system so that we can easily purchase goods from let’s say – we’re going to use Staples today as our example and we automatically show that it was paid with a credit card. So it doesn’t show as like an open balance on account.
So there are a few set-ups you need to do ahead of time. But once you do them, it works great. So let’s go ahead and do those set-ups. I’ve actually done them ahead of time. But I will show them to you.
So we go to Financial Management, General Ledger, and we’re going to look at the Chart of Accounts. This is the first thing I did is I set up my different credit cards that I used for paying utilities, things like that. I set them up in the Chart of Accounts.
So I have one here for American Express. This is what we’re going to focus on today. I have a couple of others as well. Once you’ve created those accounts, you need to create a payment method that’s associated with that credit card.
So let’s just show our payment methods here. Here, I have one for American Express, MasterCard, Visa and what I want to show you is that those GL accounts that we just set up are associated here as the balancing account. All right?
So that’s where all this really works. So once you’ve got that set up, you’re going to want to go ahead and apply that new payment method to your vendor.
So let’s go to Payables and we look at our vendors. I’ve created Staples. So I go to my Staples account and over here, I have my payment method as American Express and remember that American Express payment method automatically defaults to a balancing account with that account we’ve set up in our balance sheet.
So let’s say that I want to go ahead and create a purchase invoice to Staples. We will go here and we will just go ahead and we will put our office expenses in here. There we go. Office supplies. Obviously you break this out in whatever detail is appropriate for you.
Once you’ve got that entered, I just want to show you here that on the invoice details down here, that payment method has defaulted from the vendor’s card and let’s go ahead and post this and let’s take a look at that posted invoice.
So here I am. I’m on that posted invoice and let’s navigate and see what it did. All right. So if I look at the vendor ledger entries associated with that transaction, I see the invoice that we created, plus the payment. It’s already done and they’ve been applied to each other. So on that vendor’s account card, they have a zero balance.
If we look at the general ledger, again we see our accounts payable for the vendor. We see our expense office supplies and then we see – I’m sorry. This is our accounts payable. This is that account that we set up for the balancing account. So now, what will happen is you’re going to get a bill in a few weeks from American Express.
You’ve already broken out the expense, the appropriate expense accounts. So all you’re doing is you’re going in. I’m going to just create a general journal entry here and basically you get the invoice from American Express and let’s see what I have set up for American Express. There we go.
You would put the total amount in the invoice and the balancing account will be that account that we created – our balance sheet account for the American Express.
All right. You would go ahead and post that. Looks like I’ve done this before. We post. OK. So let’s go take a look at that. So if we go to the Chart of Accounts, I see now that there’s no longer a balance on this account, right? Because we washed it out when we paid American Express. If we go to the American Express vendor account, I see here the invoice that we just posted for $100.
So now what will happen is when I go to do my check run, this will pop up. But the hard work of breaking out that American Express bill was already done when I created the purchase invoice. So it just simplifies things. It’s a different way of doing things and from an end user standpoint, once all the set-ups are done, it all works pretty cleanly.
Thank you very much. That concludes our lesson on setting up credit card payments.
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