Customer settlement in MS Dynamics AX is a transaction occurred to settle customer advanced collections or collections against customer invoices, and this function done in monthly basis.
Customer settlement have two different effects first one on customer level, it is customer open/close transaction, and second one financial entry, the financial effect occurred only in one case if the posting profile of advanced collection, and invoice are different.
Hereunder will illustrate the mechanism of customer advanced collection, invoices, and customer settlement financial entries;
Customer advanced collection posting profile is Prepayments, and the financial entry will be:-
Dr. Banks 1200 EGP
Cr. Customer deposits 1200 EGP
Open transactions: 1200 EGP Advanced collection
Customer invoice posting profile is General, and the financial entry is:
Dr. Receivables 1000 EGP
Cr. Sales revenue 1000 EGP
Open transactions: 1200 EGP Advanced collection, and 1000 EGP sales invoice
Dr. Customer deposits 1000 EGP
Cr. Receivables 1000 EGP
Open transactions: 200 EGP Advanced collection,
Closed transactions: 1000 EGP advanced collection, and 1000 EGP sales invoice
There is an option to unsettle transactions from Closed transaction editing, and that will cause a financial entry.
In case of the posting profiles of advanced collection, and invoicing are different there is no settlement financial entry created.
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