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Scenario: Automatic settlement and prioritization [AX 2012]

Updated: June 11, 2014

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

You have two options when you settle payments with invoices and other transactions. You can manually select the transactions to settle, or Microsoft Dynamics AX can select the transactions automatically by using the automatic settlement functionality. This topic describes how transactions are settled if you select the Automatic settlement check box in the Accounts receivable parameters form. You can also customize how automatic settlements are processed by using the Prioritize settlement check box, the Use priority for automatic settlements check box, and the Manage priority link. For information about these options, see Accounts receivable parameters (form).

The way that transactions are automatically settled can differ, depending on the method that you use for automatic settlement. The following methods are available:

  • User-defined settlement priority

  • Default automatic settlement

The following sections describe how transactions are settled for each method.

The examples of settlements later in this topic are based on the following transactions. All transactions are for customer 2050.

Transaction

Date

Amount

Cash discount terms

Cash discount date

Comments

Invoice 1

August 15

100.00

2%14, Net 30

August 29

Invoice 2

September 1

250.00

2%14, Net 30

September 15

Invoice 3

October 15

500.00

2% 14/Net 30

October 29

Interest note

October 15

7.00

This interest note is for invoice 1 and invoice 2. The amount is calculated as 2 percent interest on amounts that are 30 or more days past due. For example, .02 * (100.00 + 250.00) = 7.00.

If you select the Use priority for automatic settlements check box in the Accounts receivable parameters form, the settlement priority that you define in the Settlement priority form is used when transactions are selected for automatic settlement. For more information, see Settlement priority (form). For this example, the following attributes are selected:

  • Transaction type

    • Payment fees

    • Collection letters

    • Interest notes

    • Invoices

  • Transaction date, Ascending

  • Voucher

If you post a payment for 700.00 on October 25, the following transactions are automatically selected for settlement.

Voucher

Date

Invoice

Amount in transaction currency

Amount to settle

Balance

Currency

Interest note

10/15/2015

7.00

7.00

0.00

USD

Invoice 1

8/15/2015

10001

100.00

100.00

0.00

USD

Invoice 2

9/1/2015

10002

250.00

250.00

0.00

USD

Invoice 3

10/15/2015

500.00

343.00

157.00

USD

If there is no user-defined settlement priority, transactions are automatically selected for settlement based on the due date. The transactions that are settled must have the same currency as the transaction that they are settled with. If you post a payment for 700.00 on October 25, the following transactions are selected for settlement.

Voucher

Date

Invoice

Amount in transaction currency

Amount to settle

Balance

Currency

Invoice 1

8/15/2015

10001

100.00

100.00

0.00

USD

Invoice 2

9/1/2015

10002

250.00

250.00

0.00

USD

Invoice 3

10/15/2015

500.00

350.00

150.00

USD

Interest note

10/15/2015

7.00

0.00

0.00

USD


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).
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