Thursday, December 15, 2016

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.

7 comments:

  1. I am regular reader of your blog and no doubt it all stuff is awesome. The best thing about your sharing and posting is that you always provide content that is helpful for both the newbie and experts.Microsoft Dynamics AX consultants

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  2. Wow, great! That's what I've been looking for a long time. I needed a packet of helpful writings. I got the software suport from anegis and I've already started writing e-mail to ask the same thing. Thank you very much!

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  3. This comment has been removed by a blog administrator.

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  4. Nice post.
    Is there a way to select automatic settlement only for a certain groups of customers?

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    Replies
    1. Settlement is normally based on posting profiles.

      You may try a workaround by creating separate posting profiles for separate groups of customers (However the limitation is that the user needs to select the posting profile at the time of journals)

      The best way is to make a customization under the AR Parameters >> Settlement Tab, when the Automatic settlement button is enabled, add an additional customization where the user can select the Customer Groups for which the automatic settlement needs to be applied.

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  5. Hi,
    Thanks for the nice explanation!, I have done all the above mentioned set up, I have even open customer invoices, still when I post the settlement its not settling automatically with invoices am I missing anything? And in the ledgerJournalTrans table they are setting settlevoucher field to Opentransact, Can you give me a hint in which class exactly auto settlement is happening so that I can check.I am using D365 enterprise edition (7.3) and Update 12.

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    Replies
    1. Are the unsettled transactions from difference posting profile? If so AX only settles transactions from the same posting profile, especially prepayments

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