Created by: Greg Griffith of InterDyn BMI
Your customers place orders (hopefully many orders) and as the saying goes, “the customer is always right.” Sometimes, returns or adjustments are made and your customer is due a refund that you want to pay out now rather than defer until later. Providing quality customer service will sometimes mean that you need to issue a customer refund or reimbursement, and some of those refunds may go out using a check as the Method of Payment.
Customer refunds can be generated from the AR Payment Journal in Dynamics using the Customer Master without the need to set up a Vendor Master, saving you a lot of time. Setting up a vendor account that is linked to a customer account will work, but why do the extra steps? We all know that you can generate checks to vendors using an AP Payment Journal. Dynamics AX provides another variation, allowing you to generate checks to customers using an AR Payment Journal. No vendor account is needed. You can use a customer account to generate the check.
A satisfied customer and a happy accounting department are two must-haves. The steps described in this blog post may help to save steps for your Accounting Department when generating Customer Reimbursement checks.
Steps for Issuing a Customer Reimbursement by Check Payment
- For Journal line, do these steps:
- Select Account field and use drop-down control to select Customer account to be reimbursed.
- Next, move to Invoice Go to menu and select Functions > Settlement. A form will open to show Open Transactions for the selected Customer Account. Use the checkbox control in the Mark column to select the Open Transactions (Credit Invoices or Payments) to be reimbursed.
- Press the Close button in the lower, right corner of the form. Return to the Journal voucher
- Go to AR Payment journal at menu path: Accounts receivable > Journals > Payments > Payment journal. Form will open.
- If needed, click on New to create a new Payment Journal.
- For Name, enter “Payment” or a Journal Name of your choice.
- Note: You may want to set up a Journal Name and associated Number Sequence for Voucher number that is unique to your process of generating Customer Reimbursement checks.
- Revise “Description” (Optional).
- Next, click on Lines. Form will open.
- Add additional payment lines as applicable.
- For each payment line, confirm or change the value for Method of Payment to be “CustReim”. “CustReim” is a Method of Payment that can be setup and reserved for the purpose of generating Customer Reimbursement checks. You can also call it something else. This AR Method of Payment would be setup like your AP Method of Payment for checks.
- Next, go to the menu and selection Functions > Generate payments. Form will open.
- For Method of Payment, select “CustReim” (or equivalent).
- Confirm that selection for Bank Account is correct.
- Next, select the Dialog Form will open for Payment by check.
- Select the Document Form will open for Print destination settings.
- Select print destination settings as needed.
- Then, press the OK
- Return to Payment by check
- Press the OK
- Return to Generate payments
- Press the OK Checks will generate.
- Return to Journal voucher
- Confirm that Payment status for each line has changed to “Sent”.
- Confirm that check number shows in Payment reference
- When ready, post the journal using the Menu button(s) for Post.
- Close the Journal voucher
- Go to menu path: Cash and bank management > Common > Checks (Optional). Form will open.
- Review the list of checks and confirm that your Customer reimbursement checks are shown.
- Check register will show payments to both Vendors and Customers under Recipient.
Your AP and AR groups can share a common set of check stock and a common check-printer device. You will want to coordinate who is printing what as well as the next check number.
If you have any questions about this process, please contact InterDyn BMI and we will connect you with one of our Dynamics AX consultants.