Settle open transactions’ form in Ax 2012

If a payment was entered and posted, but not yet settled with an invoice or other transaction, you can settle the payment and invoice by opening the Settle open transactions form from the Customers or Vendors forms.

When you click the Update button, the selected payment and invoice transactions are settled. If the payment and invoice transactions are in the same legal entity, the transactions change status according to the following rules:

• If an invoice is not settled in full, it remains open.
• If the amount paid is greater than the amount due, the invoice is settled and closed. The payment transaction for the customer remains open for the amount by which the payment exceeds the amount due.
• If the payment amount is less than the amount due, the payment amount is subtracted from the amount due, and the invoice remains open. The payment transaction is fully settled and is closed.
• If the amount paid equals the amount due, the payment and invoice transactions are closed.

In the following example, we have 2 open transactions against a vendor;

• 1st, credit transaction with an amount of 150 against an open purchase invoice to be paid
• 2nd, debit transaction with an amount of 150 against an advance payment

Navigate to Accounts payable -> Common -> All vendors -> Selection of vendor id ->Menu ‘Invoice’ -> Settle -> Settle open transactions

Check checkbox field ‘Mark’ manually

Check menu ‘Update’

Once ‘Update’ menu is clicked, system settles both the transactions against each other, removes the transactions from ‘Settle open transactions’ form and moves settled transactions to ‘Closed transactions editing’ form.