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Vendor Payment does not pick up financial dimensions invoice

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Posted on by Mark Schurmann2

We need to track AR and AP by division. The account structure is configured so the division financial dimension is optional. The majority of our purchases are driven by project which will always have a division financial dimension. When a vendor invoice or AP invoice is created, the financial dimension is recorded correctly on the voucher and the vendor transaction. Our problem is when we make a payment, the division financial dimension from the invoice is not picked up on the AP side of the payment voucher. This seems like a defect because if I post the invoice to AP with a financial dimension, it needs to come out of AP with the same financial dimension. On the AR side, this works as expected: invoice posts with the division financial dimension and when payment is posted, the financial dimension from the invoice is included on the AR side of the payment voucher.

There is a very old post for this issue (Dynamics Community Forum Thread Details) recommending enabling the Russian localization configuration which would make an /Inherit financial dimension from invoice/ setting available on the AP parameters/Ledger and sales tax screen. This does not seem like the appropriate resolution given we are in the US.

I can see that pulling financial dimension from the ap invoice might pose a challenge if a vendor payment is settling multiple invoices with different dimensions, however my expectation is that the voucher would simply split the AP side by financial dimension as necessary.

Mark Schurmann

Categories:

Financial Management

Administration and Setup

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saurabh bharti 14,918 Moderator on at

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Vendor Payment does not pick up financial dimensions invoice

Hi Mark,

You are right in case of multiple invoices you have this issue.

1. Try the general ledger parameter > accounting distribution / source document option

2. As mentioned by others that when you will settle this without dimension it is going to create settlement type of transactions

Here are few blogs to support the above

https://exploredynamics365.home.blog/2023/04/28/accounting-rule-financial-dimension-value-used-for-summary-account-in-microsoft-dynamics-365-finance-and-operations/

https://exploredynamics365.home.blog/2023/06/19/settlement-transaction-type-on-vendor-customer-transaction-type-in-microsoft-dynamics-365-finance-and-operations/
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Gaurangkumar Jani 4,470 Moderator on at

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Vendor Payment does not pick up financial dimensions invoice

Hi Mark,

As standard process, system create separate transaction on Invoice and Payment. The only link between this two is settlement entry.

On Payment entry system, take financial dimensions from vendor master and not from invoice selected.

The main reason behind is this payment can be related more than one invoice and each invoice can have different dimensions, so even though if you go with development it's not practice to have same dimension as invoice otherwise you have to create payment line for each invoice.

Please let us know if this helps.

Thanks,
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André Arnaud de Cal... 283,862 Test role Public on at

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Vendor Payment does not pick up financial dimensions invoice

Hi Mark,

When you post the payment journal without dimensions, upon settlement, there will be additional transactions created to clear out the balances on the dimensions. This is done on the same date, with another voucher number.
Frank Hamelly | MVP... 3,638 Moderator on at

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Vendor Payment does not pick up financial dimensions invoice

Right. I wasn't suggesting you use vendor dimensions for that very reason. Just advising that's where the dimensions are populated from OOB. Probably need a customization to pull the dimensions from the invoice(s) but how would you handle multiple invoices that have different dimensions paid on one payment? You'd have to split up the payment voucher into multiple lines.
Mark Schurmann2 93 on at

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Vendor Payment does not pick up financial dimensions invoice

No, that will not work because a vendor is not specific to a division. We have vendors that sell to many divisions. This should not matter if the financial dimension is recorded on the invoice and it is. The invoice is what posted the credit to AP with the division financial dimension and the same main account and financial dimension should be used to post the debit.
Frank Hamelly | MVP... 3,638 Moderator on at

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Vendor Payment does not pick up financial dimensions invoice

Hi Mark, do you have default dimensions on the Vendor record? Vendor could be the source for payment dimensions.
Mark Schurmann2 93 on at

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Vendor Payment does not pick up financial dimensions invoice

btw, We are on version 10.0.32.