Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

Vendor settlement

A settlement is an accounting transaction that occurs on accounts payable, accounts receivables, and the general ledger. This transaction is used mainly to settle vendor invoices against vendor payments or advance payments:

 

It is necessary to classify posting profiles of the vendor and customer in the opening balance, as it will affect the settlement process.

The settlement transaction affects vendor and customer balances, and it is reported in the vendor or customer statement report that identifies the following:

• The vendor
• The open (unsettled) invoice and payments
• The closed (settled) invoice and payments
• The vendor balance ...