Tolerance on days and amounts allows you to close an invoice even though the payment does not fully cover the amount on the invoice, whether this is because the due date for the payment discount has been exceeded, goods have been deducted or because of a minor error. This also applies to refunds and credit memos.

To set up tolerance you have to set up various tolerance accounts, specify both payment discount tolerance and payment tolerance posting methods and then run the Change Payment Tolerance batch job.

To set up tolerances

  1. In the Search box, enter General Posting Setup, and then choose the related link.

  2. In the Shortcut iconGeneral Posting Setup window, set up a debit and a credit sales payment tolerance account and a debit and a credit purchase payment tolerance account.

  3. In the Search box, enter Customer Posting Setup, and then choose the related link.

  4. In the Shortcut iconCustomer Posting Groups window, set up a debit and a credit payment tolerance account.

  5. In the Search box, enter Vendor Posting Setup, and then choose the related link.

  6. In the Shortcut iconVendor Posting Groups window, set up a debit and a credit payment tolerance account.

  7. In the Search box, enter General Ledger Setup, and then choose the related link.

  8. Open the Shortcut iconGeneral Ledger Setup window.

  9. On the Application FastTab, fill in the Pmt. Disc. Tolerance Posting, Payment Discount Grace Period and Payment Tolerance Posting fields. For Help about a specific field, click the field and press F1.

  10. On the Actions tab, in the Functions group, choose Change Payment Tolerance.

  11. To run the Change Payment Tolerance batch job, fill in the Payment Tolerance % and Max Payment Tolerance Amount fields, and then choose the OK button. For Help about a specific field, click the field and press F1.

Important
You have now set up tolerance for local currency only. If you want Microsoft Dynamics NAV to handle tolerance on payments, credit memos, and refunds in a foreign currency, you must run the Change Payment Tolerance batch job. You must enter a currency in the Currency Code field.

Note
To deactivate tolerance for a customer or vendor, you must block tolerance on the relevant customer or vendor card.

If you want to get a payment tolerance warning every time that you post an application in the tolerance, you must activate the payment tolerance warning.

When you set up tolerance, Microsoft Dynamics NAV also checks if there are any open entries and calculates the tolerance for these entries.

For more information about how to block tolerances, see How to: Block Payment Tolerances for a Customer or a Vendor. For more about how to activate the payment tolerance warning, see How to: Enable or Disable Payment Tolerance Warnings.

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