Scenario: a customer overpays you and you'd like to issue them a refund.  Processing Refunding the customer in Dynamics 365 Business Central isn't hard. You just need to be mindful of the document type is all.  Verify the customer you'd like to pay the refund to. In this case I go to the customer list and click on the balance amount to open the customer ledger that shows only the open or outstanding items. I take note of the customer number and amount. Navigate to the Payment Journal and open batch you'd like to use. Within the Payment Journal add line for Refund to the customer. Be mindful that the Document Type should be Refund in this case.  Next step is to apply the refund to the outstanding payment on the customer account. Click on Apply Entries on the Action Bar.  Select the line you'd like to apply the refund to and then click on Set Applies-to ID on the Action Bar. This will populate the Applies-to ID field on the selected line. Click OK to close the page. 

Scenario: you have a vendor that offers a 2% discount on the net amount if they pay the invoice in full within the first ten (10) days of the invoice date. Otherwise, the full invoice amount is due in 30 days without the discount.  System Configuration Within Business Central you will want to set up a new Payment Terms Code for this specific payment term.  Search for Payment Terms Click New to add a new line Update to reflect the information below Once the Payment Term is set up you can assign this to a specific vendor by opening up the Vendor Card and assigning. Open Vendor Card Add Payment Terms Code to the Payments section of the Vendor Card Verify that the Vendor Posting Group has the correct G/L Account listed for the Payment Discounts.  Open the Vendor Posting Groups Review or update the Payment Disc. Debit Acc. and Payment Disc. Credit Acc. fields with the correct Payment Discounts G/L Account. In my system account 68290 is set up for Purchase Discounts.  Processing Now that the