Drag and Drop Question A company uses Dynamics 365 Business Central. The company requires one entry to apply customer payments to one or many customer invoices and enter the payment in the bank…

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Explanation

Cash Receipt Journal - Sequence Explained

The correct order: Open journal → Add lines → Apply entries → Post

Why this sequence?

1. Open a cash receipt journal This is the mandatory starting point. In Business Central, cash receipts are processed in a dedicated journal template (distinct from general journals or payment journals). You must navigate to this journal before any data entry is possible. Nothing else can happen until the workspace exists.

2. Add lines for each customer payment Each line captures the raw payment data: customer number, document type (Payment), amount, and posting date. You're recording what money came in before you tell the system what it pays off. The lines must exist before you can apply them to invoices - you can't apply a payment that hasn't been entered yet.

3. Apply entries Once lines exist, you open the application screen (via "Apply Entries" on each line) to match the payment to the specific open invoice(s). This is the core of the one-entry-to-many-invoices requirement. Business Central marks the selected invoices for closure when the journal posts, but the application link is set before posting, not after.

4. Post the cash receipt journal Posting is always the final action. It simultaneously:

• Creates the customer ledger entries (closing the matched invoices)
• Creates the bank ledger entry (recording receipt in the bank account)

Posting before applying means invoices remain open; you'd have to apply retrospectively, which is more complex and error-prone.

The distractor: "Select G/L Account as the Balance account type"

This option is incorrect for a cash receipt journal. The balance account type should be Bank Account (not G/L Account), because the requirement explicitly states the payment must be entered in the bank account. Choosing G/L Account is a common mistake - it would post to a general ledger account instead of reconciling against your bank, defeating the purpose of the journal entirely.

Common mistakes

The sequence follows a strict setup → data entry → configuration → commit pattern that is consistent across all Business Central journal workflows.

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