Automatic Settlement for Customers and Vendors in Microsoft Dynamics AX

AX allows automatic settlement of payments with Invoices (and vice-a-versa), The automatic settlements are of 2 types:

1. Automatic settlement with system defined priority
2. Automatic settlements with user defined priority

Automatic settlement with system defined priority: The automatic transactions with system defined priority settles transactions based on the due date. However, the both transactions (Invoice & Payment or adjustment) must be in the same currency

Automatic settlements with user defined priority: For user defined custom priority, the user may set priority based on Transaction type (Invoices, Fee on payment, Dunning letters, Interest) using the Settlement Priority form

In addition to this, AX allows users to specify which posting profiles are allowed for settlement. This functionality works the same way for Vendors (Accounts Payable) & Customers (Accounts Receivable). Below is a brief process on enabling the automatic settlement and setting up user priority.

•     Enable allow automatic settlement for the customer posting profile

•     Enable Automatic Settlement under the Accounts Receivable Parameters > Settlement tab

•     Enable Prioritise Settlement (If priority needs to be given for certain transactions) and “Use priority for automatic settlement”

•     Click on Manage Priority if user needs to change the order of priority (By default AX has its own priority defined based on the date of Invoice & due date on FIFO basis)

•   Activate the necessary attribute and move Up or Down to choose the priority

The necessary setups are done. Now you can proceed making transactions with automatic settlement. Good Luck.

Wish all of you AX consultants transforming towards the Microsoft Dynamics 365 Operations from AX 2012 and older versions a great success in 2017.