When you are in the settlement window, you can now settle the amount remaining from settlement activity by applying that amount to a ledger account or another customer (in A/R) or vendor (in A/P). You can settle the remainder when you are settling amounts entered into a journal or when you are only settling open transactions.

Set up the feature in accounts receivable parameters or accounts payable parameters:

To settle from a payment journal and apply the remainder:

Create a payment journal and select Settle transactions

Settle the transactions and click on Settle remainder

Make any changes to the default settings and click on Settle remainder

View the results in the payment journal and post it. The difference is settled against the transactions that had an open balance remaining.


If you are settling open transactions without a payment journal, you can also settle remainders for the items that you have selected

The settle remainder process is the same. However, you can specify if you want to edit the remainder in a payment journal or if you just want to post the journal automatically.

Note that you also have the option to settle the amount against another customer (for accounts receivable) or vendor (for accounts payable). 

If you want to be creative, once the payment journal line is created for the remainder, change the offset account from a customer to a vendor (in an accounts receivable payment journal) or from a vendor to a customer (in an accounts payable payment journal) to net transactions for a customer who is also a vendor. 

For more information on settle remainder, click on this link: 

https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/cash-bank-management/settle-remainder