Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

Customer settlement mechanism – Dynamics 365 for Finance and Operations

In Microsoft Dynamics 365 for Finance and Operations, customer settlement is a transaction used to settle customer advanced collections or collections against customer invoices, and this function is done on a monthly basis.

Customer settlement has the following effects:

• The first effect is at the customer level. It closes the customer transaction.
• The second effect is on the financial entry, and occurs if the posting profiles of the advanced collection and invoice are different.

Next, I will illustrate the mechanism of the customer advanced collection, invoices, and customer settlement financial entries, as follows:

• The customer advanced collection posting profile ...