Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

Customer settlement

Settlement is an accounting transaction that occurs in accounts payable, accounts receivable, and the general ledger. This transaction is mainly used to settle customer invoices against customer payments or advanced payments. As shown in the following diagram, if the invoice has a different posting profile from the payment, the settlement will generate a transaction:

 

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

The settlement transaction affects customer balances, and it is reported in the customer statement report, which identifies the ...