Dynamics NAV - Payment Tolerance, Write-offs, Clearing small account balances

• AR and AP Writeoffs
• Use Payment Tolerances to auto-writeoff small balances when applying payments against invoices
• Setup payment tolerances
• Payment tolerances can be setup directly on the Currency Card
• OR
• General Ledger Setup>Actions>Change Payment Tolerance
• Define % or amount per currency or for all to change for multiple currencies at once
• The % and the Amount must be > 0 or the Payment Tolerance Account columns on the customer and Vendor Posting Group screens will not be visible
• The Max tolerance field is what really controls the range
• Enable warnings if you would like to know when the tolerance rules are being applied
• Define Payment Tolerance Accounts
• General Posting Setup>Sales Pmt. Tol Debit Acc.
• General Posting Setup>Sales Pmt. Tol Crebit Acc.
• If you would like to only use this for customers, and not vendors, simply leave the Pmt. Tol fields blank for the vendor posting groups, and vendor tolerances will not post
• Process
• Create Cash receipt for amount over or under invoice, but within tolerance range
• Select document to apply to
• A prompt will appear to confirm if to apply tolerance, or leave remaining amount
• The invoice will be fully paid off
• The payment GL Entry will will have an additional line for the small amount going to the Tolerance Account
• Account Closing
• Income Statement Accounts
• Year-end routine will generate a journal to clear all income statement accounts
• Recurring Journals
• Create a recurring Journal
• Recurring Method B Balance
• Click Allocations
• Enter Account No. =  Writeoff Account>Allocation % = 100%
• Repeat this for all accounts that will need to be periodically cleared
• Post the journal to clear the balances
• The recurring journal will remain for the next time this exercise needs to be done