Settle transactions with payments


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

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.


(FRA) Invoice holds are available to French public sector entities. If a hold is placed on an invoice, the invoice cannot be settled until either the hold is removed or the time period for the hold has passed. For more information, see (FRA) Place or release vendor invoice payment holds (Public sector).

For information about cross-company settlements, see About cross-company payment settlements.

  1. Click Accounts receivable > Common > Customers > All customers.


    Click Accounts payable > Common > Vendors > All vendors.


    Click Procurement and sourcing > Common > Vendors > All vendors.

  2. Select the customer or vendor whose open transactions you want to settle.

  3. To settle open customer transactions, on the Action Pane, click the Collect tab, and then click Settle open transactions.


    To settle open vendor transactions, on the Action Pane, click the Invoice tab, and then click Settle open transactions.

  4. In the Settlement posting date field, select whether to post settlement transactions using the date of the most recent transaction, today's date, or a date that you specify.

  5. Optional: To designate one of the transactions as the primary payment transaction, select the transaction and then click Mark payment.

    The purpose of a primary payment is to settle all the other transactions that are selected. The transaction date of the primary payment is used in cash discount calculations and exchange rate calculations. If a primary payment is selected, the cross rate can be entered.

  6. Select the Mark check box on the other open transactions to be settled. A red icon indicates that a transaction is already marked for settlement.

  7. Optional: If the Mark by priority button is available, you can click this button to mark all debit transactions according to the settlement priority that is specified in the Accounts receivable parameters form. For more information about this button, see Settle open transactions - customer (form).

  8. Optional: If the Mark invoice lines button is available when you select an invoice, you can click this button to open the Mark invoice lines form. Use this form to select individual transaction lines for settlement and modify the amounts to settle for those lines. For more information, see Key tasks: Customer payments and settlements.

  9. You can enter the cross rate for each transaction that you selected to be settled with a primary payment transaction in step 5.

  10. Click Update. The marked transactions are offset against each other.

See also

Reverse settlements

Specify the cross rate