Vendor Cash invoice recording and auto settlement in Microsoft Dynamics 365 finance and operations

Recently I came across one scenario in my project where I observed that after posting invoice, invoice is automatically settled with additional payment entry which user did not post. So, was wondering how this got settled and posted.

After doing investigation with help of Support team, root cause was the term of payment selected on Invoice which was “Cash”.

So, when we select cash terms of payment on invoice system creates the settlement entry automatically and post to the cash account mapped on terms of payment master.

Let’s see how it works

Create Terms of Payment

Create and post vendor invoice (Select Cash payment term)

View vendor transactions

View Voucher transactions

That’s it for this blog, hope this will give you idea about recording vendor cash invoice in Dynamics.

Thank You!!! Keep reading and sharing!!!