Customer Payments
Learn the three methods for recording customer payments in Business Central and when to use each approach.
Learning Objectives
- Use Cash Receipts Journal for flexible payment recording
- Process bulk payments with Register Customer Payments
- Consolidate daily payments using Deposits
Overview
Managing customer payments effectively is essential for maintaining cash flow and accurate financial records. Business Central provides multiple methods for recording payments, each designed for different business scenarios.
Method 1: Cash Receipts Journal
Use case: Versatile tool for businesses that receive payments in different ways — single invoice payments, bulk payments, or partial payments.
Features:
- Apply payments directly to open customer ledger entries
- Handle multiple payment methods (check, bank transfer, cash)
- Support payment discounts and write-offs
- Full control over application logic
When to use: When you need flexibility — different payment types, partial applications, or manual matching.
Method 2: Register Customer Payments
Use case: Designed for businesses that process a high volume of invoices and need a faster way to match payments.
Features:
- Simplified page to quickly process payments for multiple customers
- Streamlined matching workflow
- Optimized for high-volume AR departments
When to use: When processing many customer payments daily and speed is the priority.
Method 3: Deposits
Use case: Ideal for businesses that receive multiple payments daily and want to consolidate them into a single bank deposit before bank reconciliation.
Features:
- Groups multiple payments into one deposit slip
- Easy match against the bank statement during reconciliation
- Tracks deposit date and bank account
When to use: When you batch payments before taking them to the bank (retail, cash-heavy businesses).
Comparison
| Method | Flexibility | Speed | Best For |
|---|---|---|---|
| Cash Receipts Journal | High | Medium | Mixed payment types |
| Register Customer Payments | Medium | High | High-volume AR |
| Deposits | Medium | High | Batch bank deposits |
Payment Application
Payments can be applied automatically (using application rules) or manually (selecting specific invoices). Unapplied payments remain on the customer account as open credits.
Payment Discounts
Configure payment discount terms on customer payment terms. BC automatically calculates available discounts when applying payments within the discount period.
Key Revision Points (MB-800)
- Understand when to use Cash Receipts Journal vs. Register Customer Payments
- Know that payments can be applied automatically or manually
- Payment discounts incentivize early payment and reduce AR aging