Set up promissory notes
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
A promissory note is a written agreement in which the maker of the note promises to pay a certain amount at a certain time.
When you use promissory notes as payment for vendor invoices, you debit the vendor account. You will typically settle the invoice with the promissory note on the due date. When you receive notification from the bank that the promissory note has been honored, you can close the promissory note. In Microsoft Dynamics AX, you use journals to manage promissory notes.
Use the following procedures to set up promissory notes for your business. Some setup options for promissory notes are available only when specific configuration keys are selected. For more information, see Country/region-specific topics for Microsoft Dynamics AX.
Set up posting profiles for promissory notes
Use the Vendor posting profiles form to set up posting profiles to use when you post promissory notes, promissory note remittances, or invoice remittances.
Click Accounts payable > Setup > Vendor posting profiles.
Click New or press CTRL+N to create a vendor profile. Enter an identifier, such as PN, and then enter a description, such as Promissory note.
On the Setup FastTab, in the Summary account field, select the summary account to post the promissory note amounts to:
For promissory notes, this account is credited when a promissory note is posted and is debited when a remittance is posted.
For promissory note remittances, this account is credited when a remittance is posted and is debited when the remittance is settled.
For invoice remittances, this account is credited when a remittance is posted and is debited when the remittance is settled. This account offsets the vendor summary account in these transactions.
Select values for other account fields, as appropriate.
Repeat steps 2 through 4 to create the posting profiles for promissory note remittances and invoice remittances.
Close the form.
Set up accounts payable parameters for promissory notes
Click Accounts payable > Setup > Accounts payable parameters.
Click the Ledger and sales tax tab.
In the Promissory notes field, select the default posting profile to use when you post a promissory note or a redrawn promissory note.
In the Invoice remit field, select the default posting profile to use when you post an invoice remittance.
In the Remit promissory note field, select the default posting profile to use when you post a vendor bank remittance.
Select the Warn if payment proposal uses multiple methods of payment check box if a message should be displayed when a payment proposal includes more than one method of payment for the same journal line.
Click the Number sequences tab.
In the Note ID row, select a number sequence to identify promissory note payment files.
In the Remittance number row, select a number sequence to identify remittance files.
Close the form.
Set up journal names for promissory notes
Create at least four journal names to use for promissory notes. For each promissory note journal, you can use the Promissory note tab on the corresponding journal voucher form to enter information about the promissory note. After promissory note journal lines are posted, you can see them in the Promissory note journal inquiry form and in the Promissory note statistics form.
Click General ledger > Setup > Journals > Journal names.
Click New or press CTRL+N, and then in the Name field, enter the journal name. For more information, see Journal names setup (form).
On the General FastTab, in the Journal type field, select one of the following options:
Vendor draw promissory note
Vendor redraw promissory note
Customer bank remittance
Vendor settle promissory note
If you selected the Customer bank remittance journal type, specify how remittance fees are posted in the Fees posting field. You can select one of the following options:
Keep fees in journal – Retain the fees in the remittance journal. You will post the fees after the payment amounts have been posted.
Transfer fees, keep voucher no. – Post fees by using the same voucher number as the one used for the original payment. The remittance fees are transferred into the journal that is specified for the bank account for the remittance, and the original voucher number is retained.
Transfer fees, new voucher no. – Transfer the remittance fees into the fee journal that is specified for the bank account for the remittance and assign a new voucher number.
Repeat steps 2 through 4 to set up at least one journal name for each journal type.
Close the form.
Set up methods of payment for promissory notes
Set up at least one method of payment for promissory notes. If you do business with more than one bank, set up a method of payment that corresponds to the bill of exchange remittance format required for each bank.
If you do business in more than one country/region, set up a method of payment that corresponds to the promissory note export format that is used in each country/region. For more information, see Country/region-specific topics for Microsoft Dynamics AX and Methods of payment - vendors (form).
Click Accounts payable > Setup > Payment > Methods of payment.
Click New or press CTRL+N, and then in the Method of payment field, enter an identifier, such as PN.
In the Period field, select the period during which invoices in automatic payment proposals are combined:
Invoice – One payment transfer is created for each invoice.
Date – All invoices for a vendor that have the same due date are combined.
Week – All invoices for a vendor that have a due date in the same week are combined.
Total – All invoices for a vendor are combined into one payment.
In the Description field, enter a name or short description for the method of payment.
In the Grace period field, enter the number of days in which your business is allowed a cash discount after the specified period, if applicable.
In the Payment status field, select the payment status that is required to post a payment that is assigned this method of payment. Select the payment status as Sent to indicate that the promissory note document must be printed or that an export file must be created before you can post a payment that uses this method of payment.
In the Payment type field, select Promissory note.
(FRA) If you are setting up a method of payment for French promissory notes, click the General FastTab. In the Type of draft field, select Promissory note.
Click the File formats FastTab.
Select an export format. For example, in the Export format field, you can select Promissory note document, which is the promissory note document format required by several countries/regions, including Spain.
Note
If the Export format field list is empty, click Setup, and then select one of the available formats.
(FRA) In the Remittance format field, select a remittance format.
Select the Create and post draw journal automatically when posting invoices check box to have a promissory note drawn and posted when a vendor invoice is posted. Clear the check box to manually draw promissory notes in a draw promissory note journal.
If a promissory note should be drawn automatically when a vendor invoice is posted, you can select the Run export script check box to automatically export the promissory note information to a file. Clear the check box to manually create a payment file for each bank account.
Select a journal name that uses the Customer draw bill of exchange journal type to post the payments to a draw promissory note journal.
Note
Be sure to select a journal name with the correct journal type. Other payment journal types are used with different methods of payment, such as checks.
Click the Payment attributes FastTab, and then select the options to be included when you select invoices by using a payment proposal:
Select the Third-party bank check box to include the bank account for the vendor.
Select the Payment account check box to include the bank account for the method of payment.
Select other options, if required by the export format for your bank or country/region.
Note
The payment attributes are used only when you select invoices by using a payment proposal.
Click Payment fee setup, and then enter the payment fees for the method of payment in the Payment fee setup form. The payment fees that you set up in this form are used as the default entries on the Payment fee tab when journal lines are created in a redraw promissory note journal, remittance journal, or settle promissory note journal. For more information, see Vendor payment fee setup (form).
Click Remittance files for vendors to show a list of generated remittance files.
Repeat steps 2 through 17 to set up additional methods of payment, if necessary.
Close the form.
Set up payment fees for promissory notes
If vendors charge a fee when you pay with a promissory note, you can set up payment fees. Payment fees are charges that are associated with the process of collecting payments from customers. Each payment fee can have multiple payment fee setup lines associated with it. Use setup lines to control how default amounts for payment fees are calculated. For example, you can create setup lines for methods of payment, payment specifications, currencies, and time periods. You can also create setup lines for a percentage or amount based on day intervals, such as an interest percentage based on the length of time that a payment is overdue.
Click Accounts payable > Setup > Payment > Payment fee.
Click New or press CTRL+N, and then enter information for the payment fee. For more information, see Vendor payment fee (form).
Click Payment fee setup to open the Payment fee setup form. For more information, see Vendor payment fee setup (form).
Click the General tab.
In the Method of payment field, select a method of payment to use for the payment fee. The method of payment for the payment fee may be different from the method of payment for the payment that the fee is based on.
In the Payment specification field, select the payment specification to use for the method of payment.
Repeat steps 2 through 6 to set up additional payment fees, if necessary.
Close the form.
Set up remittance fees for bank remittance files
You can set up remittance fees that are charged by a bank for each remittance file that is generated. The remittance fees are posted when the remittance has been confirmed, and the realized fee amounts are known. These fees are different from payment fees, which are paid to vendors and are attached to journal lines.
Click Cash and bank management > Common > Bank accounts.
Select a bank account or click Bank account to create a new account, and then enter information for the bank account. For more information, see Bank accounts (form).
Click the Negotiable instrument FastTab.
In the Fee journal field, select a journal to use for the generated remittance fees.
In the Collection expenses fee, Discount interests fee, and Invoice remit fee fields, enter the amounts charged by the bank for each type of remittance. For each type of fee, select a ledger account to post the fee expenses to.
Close the form.
Set up document layouts for promissory notes
Specify the document layout required for each bank account that you will generate printed promissory note documents for.
Click Cash and bank management > Common > Bank accounts.
Select or create a bank account, and then enter the bank account details. For more information, see Bank accounts (form).
Click the Setup tab, click Promissory note, and then set up the layout. For more information, see Promissory note layout (form).
Close the form.
Set up vendors for promissory notes
For each vendor that you will pay by using a promissory note, you can set up a default method of payment for promissory notes.
Click Accounts payable > Common > Vendors > All vendors. Select an existing vendor, and then double-click the vendor account.
In the Vendors form, click the Payment FastTab.
In the Method of payment field, select a method of payment that is set up for promissory notes.
Select a payment specification, if necessary.
Close the form.
See also
Methods of payment - vendors (form)
Vendor payment fee setup (form)