Prioritize automatic settlements
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
Use this procedure to automatically settle payments by attribute type, transaction type, and billing classification. For example, when a payment is received from a customer, you can choose to settle interest notes with the largest amounts owed, first. The settlement priority will be applied to all automatic settlements. These include customer payments, payment journal lines, and open transactions that include multiple debits.
Note
This feature is available only if the Prioritize settlement check box is selected in the Accounts receivable parameters form.
Click Accounts receivable > Setup > Accounts receivable parameters. Click Settlement, and then click Manage priority.
Optional: Click Billing classifications to open the Billing classifications form, where you can arrange billing classifications and billing codes by settlement priority.
Note
This control is available only if the Public Sector configuration key is selected.
For more information about billing classifications, see Billing classifications (form) (Public sector).
Close the Billing classifications form, if applicable.
In the Settlement priority table, select an attribute to prioritize.
Click the Up or Down buttons above the Settlement priority table until the selected attribute is in the appropriate order.
Note
The voucher attribute is always enabled and cannot be modified.
Select the Active check box to include the attribute in the settlement priority. Only attributes that have the Active check box selected will be included in the automatic settlement process.
Specify other information, depending on the selected attribute and other settings that you have specified. For more information about these options, see Settlement priority (form).
Settlement order – Specify the order in which the transactions that are displayed will be settled.
Sort order – Select the order in which to apply payments. For example, if the transaction amount is set to Ascending, payments will be applied to the transactions with the lowest amounts first.
Invoice line priority – Select None, Billing code, or Proration.
Extend billing code priority across invoices – Select this check box to settle all free text invoice lines in the order that is specified in the Billing classifications form for invoices that belong to the same billing classification.
Note
This control is available only if the Public Sector configuration key is selected.
Proration type – Select Equal or Proportional.