Setting up cost types
Use cost type codes to decide who pays processing or service fees. You can set the cost type on the payment method or directly on the vendor. The vendor setting overrides the payment method. If the vendor has no cost type, Business Central uses the one from the payment method.
When you change the vendor on a purchase order, the cost type updates to match the vendor. If you define the cost type on the payment method, you can leave it blank on the vendor unless you want to override it.
When you suggest vendor payments and filter by payment method, the system first checks the vendor card for a cost type. If none is set, it uses the payment method’s cost type. You can’t override this on the payment card or payment journal. If you change the cost type manually and then modify the payment method, the system resets the cost type based on the vendor or payment method.
Available cost types
Continia Banking comes with the following cost type codes:
| Cost type code | Description |
|---|---|
| Blank | No cost type handling is applied. |
| Shared | Fees are split between you and the vendor. |
| Creditor | All fees are paid by the vendor. |
| Debtor | All fees are paid by you as the customer. |
| Service level | Fees are allocated according to pre-agreed service level arrangements. |
To set the cost type code on a payment method
Define the cost type code on the payment method to standardize fee allocation across all transactions using that method. This ensures consistent cost handling, automatically applying the code whenever the payment method is used.
- Search (
) for and select Payment Methods. - In the list of payment methods, select the payment method for which you want to define Cost Type Code.
- In the Cost Type Code column, select the cost type code that should be applied per default when using the given payment method.
The cost type code has now been defined for the payment method and will per default be used for payments with this payment method.
To set the cost type code on a vendor
You can define a default cost type code for each vendor, which overrides the payment method setting if both are specified. Setting the cost type on the vendor record allows for customized fee allocation according to individual vendor agreements.
- Search () for and select Vendors.
- In the list of vendors, navigate to the vendor for which you want to define the cost type and open the vendor card.
- On the vendor card, on the Payments FastTab, in the Cost Type field select the cost type code that should be applied per default when using the given payment method.
The cost type code has now been defined for the vendor and will per default be used when paying the vendor.