Here's how to correct payment errors in Microsoft Dynamics 365 Business Central.
If a vendor payment has been applied in error in Dynamics 365 Business Central and needs to be reversed, the following steps need to be taken in order to make the correction.
First, access the vendor card:
From here you can select Payments on the fact box pane, as highlighted above. Next, select the payment to be reversed, make sure the correct one is selected based on the arrow icon on the far left:
Select Process -> Unapply Entries
To unapply the entries, select the ellipsis in the top left (see highlight) and again, Unapply.
The following confirmation messages will appear: Click yes.
To remove the incorrect payment from the Vendor card, a General Journal line will need to be entered, putting the money back in the original bank account and clearing the payment balance from the vendor card. These next steps will demonstrate the process.
Begin by opening the General Journal. Debit BANK (select correct account), as the money is being returned to the account. Enter a description of the transaction. Bal. Account Type will be Vendor and the correct vendor.
Select Process -> Apply Entries
In the Apply Entries screen be sure to select the correct line item, per the highlighted arrow. Then you select the ellipsis -> Process -> Set Applies-to ID
Applies-to ID is populated:
Select OK in the bottom right corner of the screen and return to the General Journal. You will see that the total of the payment being reversed has been auto populated in the journal line. This can now be posted.
Return to the vendor card, the payment will no longer be a balance on the vendor account, the invoice that the payment was originally applied to will now have an outstanding balance.
For a step-by-step tutorial, check out our video tutorial on this topic that we've linked below:
Training video: How to Correct Vendor Payments
Get in touch with the Kwixand Solutions team if you have any questions around Business Central functionality or any other Dynamics 365 related enquiry.