Business Central Junction 365 Blogs

Prepayments in Business Central let you invoice and post advance payments on sales or purchase orders before the final invoice. This is useful when you require deposits before production or delivery. First of all, we have to set up Sales & Receivables Open Sales & Receivables Setup using the Tell Me 🔍 feature. Under the Number Series section: Make sure Posted Prepmt. Inv. Nos. is the same as Posted Invoice Nos. And Posted Prepmt. Cr. Memo Nos. matches Posted Credit Memo Nos. This ensures that your prepayment invoices and credit memos follow the same numbering as regular sales documents. Configuring sales prepayment accounts in the General Posting Setup Read:  Ways to handle prepayment    Go to General Posting Setup , find the line for DOMESTIC and RETAIL , and set the Sales Prepayments Account to the correct G/L account. Set Up Prepayment Percentages for Customers and Items Once the core sales prepayment settings are configured, the next step is...

When a customer pays you before you deliver goods or services — that's called a prepayment. You haven’t earned the money yet because the sale isn't complete. So, where do you put this money in your accounts? That’s where Customer Prepayment Accounts come in. 💡 Two Common Ways to Handle Prepayments in Accounting: 1. Prepayments as a Liability (most common) Why? Because the money received doesn’t belong to you yet. You owe the customer a product or service. Example in Chart of Accounts: You create a Liability Account like “Customer Prepayments.” What Happens in BC: When you deliver the product/service, Business Central automatically moves the prepayment amount from the liability account to the Revenue Account. 🔁 This is the default and standard accounting practice in many industries. 2. Prepayments as Prepaid Revenue (used in service companies) Why? In professional services (like consulting), some companies record prepayments directly in the income statement as a special kind o...

 Yes — and it’s a smart move to ensure you're not shipping goods before receiving required deposits. You can block the shipment or invoicing of sales orders until the required prepayment is fully paid. This ensures financial control and reduces risk with customers who have poor payment histories. Here’s how to enable it: 🔹 Navigate to: Sales & Receivables Setup > General FastTab 🔹 Action: Enable the Check Prepayment when Posting checkbox. 📌 What does this do? When enabled, you cannot post shipments or invoices for any sales order that still has an unpaid prepayment amount. Thanks For Reading...!! Regards, Khushbu Rajvi

In this post, we’ll break down the minimum required permissions a user needs to log in successfully to Business Central. ✅ What Is the LOGIN Permission Set? The LOGIN permission set is designed to provide the minimum access needed to sign in to Business Central. It gives users just enough permission to: Authenticate and access the system. See the company list. View their own user details. ⚠️ What It Doesn't Include The LOGIN set does not give access to: Role Centers (home pages) Pages, reports, or data Any business functionality As a result, a user assigned only the LOGIN permission set can log in successfully , but they will encounter a permission error when trying to navigate the system.  How to Fix the Role Center Access Issue Here, the user is assigned only the LOGIN permission set , with no additional roles or page access. As a result, when attempting to sign in, they encounter a permission error , because they do not have access to open any R...

📘 Introduction: When businesses incur costs or revenues that span multiple periods, deferrals ensure accurate financial reporting by spreading these amounts over time. Business Central offers a powerful tool called Deferral Templates to automate this allocation. In this blog, we'll walk you through setting up deferral templates to streamline your periodic postings. ✅ What Are Deferral Templates? Predefined schedules to defer revenue or expenses. Used for items, resources, or G/L accounts. Steps to Set Up a Deferral Template: Navigate to Deferral Templates Use the Search icon > Enter Deferral Templates > Select the link. Click New to create a new template. Fill in the Template Fields: Calculation Method (Straight-Line, Equal Per Period, Days Per Period, or User-Defined). 🔹 Straight-Line Amounts are distributed based on the length of each accounting period. Longer months receive more deferral amount, shorter ones receive less. Best for: Realistic monthly expense alloc...

In the previous session, we explored how to create Standard Journals to save frequently posted transactions. Now, let’s take the next step — reusing those saved templates. Once you have your standard journal saved, reusing it is quick and straightforward. This feature not only saves time but ensures consistency in your postings. 👉 Steps to Reuse a Standard Journal Open the General Journals page by using the Search (🔍). Choose the journal template and batch where you want to reuse the lines. Navigate to:  Home > Get Standard Journals The Standard General Journals page opens, listing all the saved templates. Select the desired standard journal entry.  Just like that, the journal lines will be populated! Now you can post, edit, or adjust those lines as needed — without rebuilding from scratch. ✅ Use Case Tip If you're handling recurring entries like monthly rent, depreciation, or intercompany allocations, using this feature will cut down your entry time dramaticall...