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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Difference between AP ...
Finance | Project Operations, Human Resources, ...
Suggested Answer

Difference between AP settlement and GL settlement

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Posted on by TamaraTodic 15

Hi all,

Can anyone tell me what is the difference between AP settlement and General Ledger settlement, and when is most convenient to use each?

For example, I did settlement on my vendor accounts (payment vs invoices), and I see settlement history for these. While on the other hand when I open Vendor Main Account via General Ledger > Unsettled transaction report, it does show me transactions I have settled via AP module. Also in General Ledger > Ledger Settlements > filtering Vendor Main Account, it is showing these transactions as "unsettled".

Thank you in advance

Tamara 

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  • Suggested answer
    Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

    AP settlement is used to apply payments or credit notes to open vendor invoices.  It's a standard part of the payment process.  General ledger settlement is used to clear one GL transaction against another.  Not many commercial companies use General ledger settlements.  In 10 years of consulting on AX/D365, I've only seen one potential use case for it and the client decided against it.

  • Suggested answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 300,911 Super User 2025 Season 2 on at

    Hi Tamara,

    I have seen some more companies using the ledger settlements. Usually for invoices, payments and credit notes, you will use the AP and AR settlements.

    Only for some specific accounts, mostly suspension accounts, you might need to use the settlements. It has no use to settle the ledger accounts for AP and AR. If you e.g. provided a loan and received the money back, you can settle these transactions to know which other loans are still open.

  • Suggested answer
    saurabh bharti Profile Picture
    saurabh bharti 15,039 Moderator on at

    Hi Tamara,

    Both are different same as how AP is different from AR . So one is Subledger and another is at ledger.

    Ledger settlement is used for only specific accounts e.g. on Product receive you have accruals and then this is reversed on invoice. Now how do you close accrual transaction? Then it will fall under Ledger settlements.

    But Ap invoice and payment should be in AP module only so that you have better outstaindg view, Aging etc..

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