Payment process automation in Microsoft Dynamics 365 Finance

July 3 2020

For those working with Microsoft Dynamics, whether AX 2009, AX 2012 or even Dynamics 365 Finance and Operations, the usual approach to processing payments for a vendor involves creating a payment journal, and then processing a payment proposal.

However, to make it more intuitive and provide more automation capabilities, a new feature for payment processing has been introduced: process automation. This feature allows you to create a pre-defined schedule with a combination of payment proposal criteria to be able to create payment journals, with less user intervention. Note that this feature is controlled by the feature management in PU35 and would have to be enabled once PU35 is installed.

The first step with process automation is to setup a schedule. This can be setup under Accounts Payable-->Setup-->Payment-->Process Automations.

You can start creating a process automation by selecting “Create new process automation”.  You can see the schedule type that appears as “Vendor Payment proposal”.

The most interesting and advanced feature lets you schedule automation across companies (payment journals would be created in respective companies) without changing the company's day to day activities of using Dynamics 365 Finance.

Once you click on “Create series” you are shown different options, including a way to set up a batch job and define alerts to monitor the processing.

After you click on “Next” you will be presented with a form similar to what you might see in the payment proposal, with options like Amount limit, Include invoices from other companies (Centralized payments option), Delete negative payments and others.

The only option you may not find in this form is the From Date and To Date that you would find on the payment proposal. These are replaced with the Define to date criteria check box and the Number of days adjustment for to date. The idea of scheduling this automation for payment processing is that it can automatically pick any payments that are due for a given day that the job executes. If you needed to pay invoices earlier than a due date, then you can mark the Define to date criteria and enter the number of days before due date.  You would need to pay the invoices in the Number of days adjustment for to date column.

You can also set filters as needed, much like you would in a normal payment proposal.

Finish and you can see your schedule is setup. On the right side you can see how the schedule appears and disable or edit as needed.

Once the job starts executing, you will see the view changing from Scheduled to Executing.

 Once the execution is successful, you can see that there is a payment journal number that is generated in the same section as the status of the execution. You can also simply click on the view results to view the journals that might have been created.

In this case, the job has processed and created the journal seen below with all invoices that have the payment method set as Check.

To summarize the feature of process automation in Dynamics 365 Finance:

  1. You can schedule your payments processing based on different criteria for different days or times of a day.
  2. This will reduce the manual journal creation that is usually done to process payments.
  3. You can monitor all the details in a dashboard view based on the schedule and view if there are any errors and resolve them.

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About Vamsi Pranith Donepudi

Vamsi Praneeth Donepudi (LinkedIn) is a senior manager and architect based in Nashville, TN, USA.

Currently working as a Sr. Manager/Architect based out of Nashville, TN, USA. You can include my linkedin profile - https://www.linkedin.com/in/vamsi-pranith-donepudi-19ba5b12/

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