AR/AP Settlement Transactions

In this blog lets summarize some of the settlement transactions generated from the settlement of the debit and credit.

When you settle the debit and credit transaction on AP or AR module these kind of transactions you may see on vendor or customer transactions. Also the will have the GL postings.

1. Revaluations: If there is a difference between debit and credit in accounting currency when transaction currency is balanced, then system will create revaluation transaction automatically.

2. Over/Underpayment: If in the parameters you allow the settlement of the over under payments, then system will close debit and credit balance with a over and under payment transactions with in the limit.

3. Settlement: This kind of transactions occur if you settle transactions with different dimensions or posting profiles. System will transfer balances from one dimension/Gl account to the other for to balance the GL.

4. Intercompany Settlement: If you use an intercompany payment, to balance the vendor transactions and GL, intercompany type of transactions are created.