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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Confirmation of settle...
Finance | Project Operations, Human Resources, ...
Suggested Answer

Confirmation of settlement of vendor invoice with credit note

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Posted on by mnczvx 10
Hello,
 
For a long time I have been wondering, if it is somehow possible to send a confirmation form the system, which informs a vendor that we have settled vendor invoice with credit note? As an example let's say that vendor issued credit note to our company due to poor quality of product from last shipment they had sent to us. Credit note was issued for 50 euros. We have some outstanding invoices, which we need to pay to this vendor. We have decided we want to settle one of those invoices with credit note. We decided to settle one of the invoices with balance of 100 euros with credit note mentioned above. We can process this operation in settle transactions however I do not see any option to generation ,,Settlement document''. It seems a little bit odd that it is not possible to generate such documents when it is possible to process vendor/customer netting. Does anyone know what could be used to generate such document?
 
Best regards, Michal
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  • Suggested answer
    Saif Ali Sabri Profile Picture
    Saif Ali Sabri 2,351 Super User 2025 Season 2 on at
    While vendor/customer netting allows document generation, standard settlements do not include this feature. If this is a frequent requirement, customization might be the best approach.

    There is no out-of-the-box functionality to automatically generate and send a settlement confirmation document for vendor invoice and credit note settlements. However, you have a few workarounds:
    Workarounds:

    If settlement confirmation is a frequent requirement in your business, customization might be the most efficient long-term solution. 🚀

    1. Vendor Account Statement:
      • Navigate to Accounts payable > Inquiries and reports > Vendor > Vendor statement
      • Generate a vendor statement showing the settlement transactions.
      • Send it to the vendor as confirmation.
    2. Vendor Transactions Report:
      • Navigate to Accounts payable > Inquiries and reports > Vendor > Vendor transactions
      • Filter by the relevant vendor and settlement transactions.
      • Export the report and share it with the vendor.
    3. Custom Report or Email Notification (For Automated Processing)
      • If you need a formal settlement confirmation document regularly, you may consider a custom SSRS report or Power Automate workflow to automatically generate and email a settlement confirmation when a credit note is applied to an invoice.
        Customization Approaches:
      • Custom SSRS Report
        • Develop a report that extracts settlement details and formats them into a document.
        • Add it to the Accounts Payable module for on-demand generation.
      • Power Automate / Email Workflow
        • Create a flow to trigger an email with settlement details when a credit note is applied to an invoice.
        • Include transaction details such as invoice number, credit note number, amounts, and vendor reference.
      • 📌 Note: This requires technical development (either via Power Automate or a developer creating a report in SSRS).

        Conclusion

        Since standard Dynamics 365 Finance does not provide a settlement confirmation document, the best workaround depends on your needs:
      • If a quick confirmation is needed, use Vendor Statements (Option 1).
      • If you require detailed transaction data, use Vendor Transactions Report (Option 2).
      • If you need an automated solution, consider custom SSRS reports or Power Automate workflows (Option 3).

        If settlement confirmation is a frequent requirement in your business, customization might be the most efficient long-term solution. 🚀
  • Suggested answer
    Ramesh Kumar Profile Picture
    Ramesh Kumar 7,527 Super User 2025 Season 2 on at
    Hi Michael,
     
    Can you please let us know which ERP/platform you are using?
     
    Thanks
    Ramesh
     
    If this was helpful, please check the "Does this answer your question?" box and mark it as verified.
  • mnczvx Profile Picture
    mnczvx 10 on at
     
    Hello,
     
    Dynamics 365 Finance is the platform I am using.
     
    Best regards, Michal

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