Aren’t modern Credit Cards awesome? They have so much great technology, they’re easy to use and everyone has them, right? They are, unless you are having trouble tracking them, receiving the payments and reconciling them in your ERP. So, let’s give you a couple of ideas to help with that in Dynamics 365 Business Central!
*These are by no means the only way to handle CC payments, just some suggestions to improve efficiency!
The following three are solid options! Credit Cards as Bank Accounts (our recommended without ISV), Credit Cards as Vendors and using an ISV.
If you’re looking to stay away from ISV’s (y’know, fees and all), then this is our recommendation for an effective way to handle Bank Accounts in Business Central. The huge benefit of this method is the reconciliation functionality that comes with it.
For this method:
• Set up one Bank Account for each Credit Card.
• Set up as many G/L Accounts as you want to show the Credit Card amounts on the Chart of Accounts. – Some people like one for each card, some like a company cards and a management cards split and some like just one account.
• Set up one Bank Account Posting Group for each G/L Account you created in the previous step
Now, you pay off the Purchase Invoice (or Prepayment Purchase Invoice) with the Credit Card bank account (using Create Payment/Payment Journal). You can now see this amount reflected as a liability in your Chart of Accounts. From here, you can now pay off the Credit Card Bank Account with your main Bank Account, when it comes time to paying your bill. In addition, you will have Bank Ledger Entries for both your Credit Card and main Bank Account to use to reconcile against. You can take this efficiency a step further too! If you set up a PDF auto-match with your Bank Accounts, you can simply import your Credit Card statement and click the auto-match functionality in Business Central to really speed up the whole process.
As a shameless self plug, we have a customization that will automatically pay the invoice when you select one of your Credit Cards to save you from having to complete the last steps yourself!
The second option to handle Credit Card payments in Business Central is to set Credit Cards as Vendors. It is a similar process to above.
You need to:
• Set up a Vendor from for each Credit Card.
• Set up as many G/L Accounts as you want to show the Credit Card amounts on the Chart of Accounts. – Some people like one for each card, some like a company cards and a management cards split and some like just one account.
• Set up one Bank Account Posting Group for each G/L Account you created in the previous step.
Now, slightly differently to above, you can pay off the original Vendor with the Credit Card Vendor. The balance will then sit on this Vendor until you pay it off with your Bank Account.
Our customization mentioned above also accommodates this method!
The final method, that is definitely worth a mention, is to use an ISV. An ISV is a third-party software add in that can supplement the Business Central functionality. At this point, there is only a small number of purchasing ISV’s available compared to what is available for the sales side (linked payment portals etc). Don’t write these off, they may be able to fill a need for you greatly! These will work in many ways and each will operate slightly differently. Also, the benefit of using ISV’s off AppSource is the Microsoft approval as well as the commitment to upgrade management. Just remember to keep in mind there is always an implementation process and fees involved.
