Paying your vendors can be a slow process, but electronic payments are here to change the way you do things – making it more convenient and faster. Microsoft Dynamics 365 Business Central provides exactly for this, allowing users to export payments to a CSV file for electronic payments. This simple and fast setup is worth the effort, and definitely faster than running down to the bank for a cheque drop-off.

Electronic payments in BC work in this way:

• Payments will be exported to a CSV file, which will then be transmitted to your bank.
• The bank then electronically transfers the payments from your bank account to the payee’s (vendor) bank account.

This article explains how you can quickly transform your payment process electronically in your Microsoft 365 Business Central ERP system, a good step to take if you want to improve your digitalization plans.

Step 1: Create a new Data Exchange Definition

Step 2: Fill in the information as highlighted in this screenshot
Note: Ensure that “Type” is set to “Payment Export”

Step 3: Fill in the details in Line Definitions and Column Definitions

In this example, you will get 4 fields as the “Column Count” is set to 4. You can change this depending on how many fields you require.

Step 4: Field Mapping

Step 5: Setup the Bank Export/Import

Note: Ensure that the “Data Exch. Def. Code” indicates the correct Data exchange definition and Direction, such as the examples in the red boxes.

Note: Ensure that the “Data Exch. Def. Code” reflects “Bank” which you created previously in Step 2. Also, ensure that “Direction” is set to “Export”, and the correct “Processing Codeunit ID” is indicated.

In the Bank card (i.e. the bank record on your system), assign “Payment Export Format” to “Bank”.

Step 6:  Setup the Payment Method

Since we have only one definition in this example, we will set it as the default.

Step 7: Setup the payment journal batches

Note: Tick “Allow Payment Export” to allow the system to export the electronic payments file.

And that’s all you need to get this done! With the exported CSV file, you can then upload it into your online banking platform and have your payments transferred to your vendors directly.

Step 8: Export the file

(By now, you’ve already completed the one-time setup in Step 7. This step is what you will do when testing or processing your live data.)

Once the setup is complete, you’ll be able to get your files in CSV format when you export them.

No more printing cheques or purchasing cheque books. Say goodbye to cheque drop-offs or losing cheques in mail, incurring late payment charges that add to your expenses. You have electronic payments to thank for that – and giving you more time to do other productive tasks.

BUT WAIT… THERE’S MORE!

Now that you’ve got your CSV file and can upload your batch payments, what about your month-end statement consolidation and payment matching?

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