Problem Definition

Our ERP system, Dynamics 365 F&O, currently lacks support for processing "Zero-dollar checks" within the customer payment journal. This issue arises when customers, typically large grocery stores or online marketplaces, send Electronic Data Interchange (EDI) 820 remittance advices that settle invoices solely through deductions, without any accompanying cash payment.

In the existing setup, Dynamics 365 F&O requires that every customer payment journal entry include a payment amount, resulting in a "Posting without amount cannot be made" error when processing these zero-dollar remittances.

Impact

This limitation disrupts the automatic processing of EDI 820 remittance advice, impacting both efficiency and accuracy. With some remittance advices involving hundreds of deductions per transaction, manually creating deductions in the Deduction Workbench is not feasible. The lack of automated handling for zero-dollar checks leads to significant administrative overhead, increases the risk of error, and slows down our processing of customer payments.

Proposed Solution

We propose that Dynamics 365 F&O be enhanced to accommodate zero-dollar check processing within the customer payment journal. Specifically, the system should allow journal entries to proceed without a payment amount, enabling deductions to be recorded and invoices settled as per the remittance advice.

Rationale for Vendor Support

This enhancement would improve the functionality and versatility of Dynamics 365 F&O for handling EDI 820 transactions across various customer scenarios, supporting the seamless processing of payments and deductions. It would also reduce manual intervention, streamline operations, and enable our finance team to focus on higher-value tasks rather than repetitive data entry.

By addressing this issue, the ERP can better meet the needs of users handling complex B2B EDI transactions, resulting in improved user satisfaction and operational efficiency.

Steps to recreate the problem

1. Open Accounts Receivable > Payments > Customer payment journal.
2. Click + New.
3. On the first line, pick a customer account with open invoices.
4. Click the Settle transactions menu item.
5. Mark an invoice for settlement and then click OK.
6. Change the Debit/Credit columns to $0, which removes the values.
7. Set an offset account. We chose a Ledger cash reconciliation account to not try to transact on any bank account. The system will not permit adding the customer account on the same line as the offset.
8. With the settlement line highlighted, click the Deductions menu item.
9. Create a deduction from the customer remittance advice. Choose the type, set the amount, and update the External claim number fields.
10. Close the deduction screen. This journal now looks correct. Customer, invoice, credit, and offset accounts are set.
11. The voucher and journal are in balance.
12. Simulate posting by clicking Validate > Simulate posting.
13. Receive the following warning:

Posting without amount cannot be made