Dynamics 365 – AR Settlement Process Improvements

Settlements in Microsoft Dynamics 365 for Finance and Operations can be aggravating, especially when the payments do not nicely match up to the invoices.  Even worse, is when multiple payments have been received for one invoice!  Aarrrggghhh!

Well not anymore!  (Applause, applause!) – Microsoft has heard the complaints, moans, and groans and have done something about it.

They also renamed the ‘Closed Transaction Editing’ to ‘Undo Settlement’ for ease of use.

Please follow along during the demonstration.

Accounts Receivable Settlement

Settlement can be performed automatically by setting the Automatic Settlement in the Parameter form.  If Settlement is not automatic, it can be performed during the posting of invoices or customer payments.  Settlement can also be performed after the posting by navigating to the ‘All Customers’ page, the ‘All Vendors’ page or from the transactions page for a Vendor or Customer.  Let’s look at AR Settlement from the perspective of a single customer.

Navigate to ‘All Customers’ and select the customer to be settled.

Under the “Collect’ Tab, select the ‘Settle transactions’ option in the ‘Settle’ area.

Settle transactions Dynamics 365

On the Settle Transactions page, a settlement posting date (latest date, today’s date, selected date) and a Date to be used for Calculating Discounts (transaction date, selected date) is required.

Settlement is accomplished by marking the invoices, payments, debits, and credits.  The tally, or Settlement Balance, is tracked at the bottom of the form for ease of use.

There is no limit to the number of transactions that can be marked, allowing settlement to be as flexible as needed to handle the numerous situations that may be encountered.

Transaction Settlement Dynamics 365

Typical Settlement scenarios are as follows

  • If Payment exceeds invoice plus credits and debits, the payment remains open for the excess amount.
  • If the invoices exceed the payments and credits, an invoice remains open for the amount it was underpaid.
  • If the payment and credits equal the invoices and debits, the transactions are closed with a balance of $0.00.

In the situations where neither of these situations occur, Settlement can even result in a transaction itself!  Examples of transactions that can result from a settlement are:

  • Sales Tax Adjustments
  • Write-off’s
  • Cash Discount
  • Realized Gain or Loss
  • Rounding differences

Happy Settling!

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For more information please contact Ellipse Solutions at info@ellipsesolutions.com or by calling our corporate office at (937) 312-1547.

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