How to transfer funds between bank accounts using Xe in Microsoft Dynamics 365 Business Central

You can now transfer money between bank accounts in Business Central directly from the payment journal using 'Pay with Xe'. Transfers can be made between accounts in the same currency or different currencies.

Follow the steps in this article to set up and use this feature.

Step 1: Check that the bank account has been set up correctly

From the menu, click Bank Account and choose the correct account before verifying that the information in the following sections is accurate:

General Section

• Bank Name
• Bank Account No.
• Bank Clearing Code (depending on your bank’s region)

Xe section

• Purpose of Payment
• Industry Category
• Industry Subcategory
• Payment Method Code: (this should be set to Xe)

Communication section

• Country/Region code

Posting section

• Currency code

Transfer section

• SWIFT, IBAN, or BSB Number (depending on your bank’s region)

Step 2: Configure company address

Check that the Company Address fields are fully populated or update them as below. We use these fields for the recipient address in the Xe contract.

1. Click the Settings icon (top left).
2. Select Company Information.
3. Complete the following fields:
   • Name
   • Address
   • Address 2
   • City
   • State
   • Zip Code
   • Country/Region
   • Email
   • Phone No.

Step 3: Create the payment

Follow these steps to create a payment:

1. In Business Central, click Cash Management, then select Payment Journals.
2. In Payment Journals, click +New.
3. Enter a Name and Description for the payment.
4. Set Balance Account Type to the sending Bank Account.
5. In Balance Account Number, select the appropriate bank account.
6. Click outside the pop-up screen to continue.
7. In the Payment Journals screen, scroll down and click on the payment line you added.
8. Set Account Type to Bank Account.
9. Choose the receiving bank account from the Account No. dropdown.
10. Enter the Amount.
11. Click Xe followed by Pay with Xe.
12. In the Process payments with Xe screen:
    • Click OK to proceed.
    • (Optional) Change the Balance Account and Settlement Method, then click OK to save changes.
13. Review the quote and click Confirm.
14. View the payment and contract details, then click Continue.

The Settlement Status will change to Awaiting Settlement and the Contract Status to Contract Confirmed.

Note:

• A journal can only consist of payments either of type Vendor Payments or type Bank Accounts.
• Creating a journal with multiple lines containing both types (Vendor and Bank Account) is not allowed.