Wrong vendor payment voucher (with settlement)

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fund and odd transactions that was created when I posted vendor payment journal with invoice settlement. I saw that in addition to the payment voucher another voucher was created with the payment amount and it was crediting and debiting the same vendor account. It is a settlement type transaction, but I never noticed this behavior in AX before.

Usually a settlement transaction is created if exchange rates differences exist in accounting (or reporting) currencies but then the transaction amount is 0 and here the transaction amount is the full payment amount.

Also, this transaction is not created if I settle invoice with payment from the vendor > settle open transaction form, only if I settle payment with invoice from the vendor's payment journal.

If you have any suggestion let me know.

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Thank you,

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Brandon Wiese 17,788 on at

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RE: Wrong vendor payment voucher (with settlement)

I have also noticed this. In my case, the financial dimensions were different and I assumed it was something the system did to flush out the dimensions on the Accounts payable trade main account, but now I don't think so.

I'll add myself to this thread for now. Maybe someone else has also noticed this.

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Community Member on at

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RE: Wrong vendor payment voucher (with settlement)

I am also having the same problem. Have you found an explanation or solution for this? Thanks

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Brandon Wiese 17,788 on at

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RE: Wrong vendor payment voucher (with settlement)

I recall seeing multiple hotfixes that seemed related to this issue. I don't have at my fingertips right now. Search LCS. They should not be difficult to find.

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Julieta Arenoso 80 on at

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RE: Wrong vendor payment voucher (with settlement)

Hi Brandon, how are you?

I couldn't find it in LCS.

Thanks!

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Kristi Slininger 66 on at

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RE: Wrong vendor payment voucher (with settlement)

Irina,

The additional voucher is created to 'fixup' the accounting entries when the payment relieves or reverses the amount out of a different AR/AP ledger account than the invoice was posted against. For example, the invoice posted 100.00 to AP-Dept100-CCA, but the payment was posted for -100.00 to AP-Dept200-CCA. Because the 'wrong' AP ledger account was relieved, settlement will create an accounting entry to make an adjustment.

If the accounting entry for the additional voucher shows a Dr and Cr to the EXACT same ledger account (including financial dimensions), then you are using a Fixed dimension on the AP ledger account. If you settle during the posting process (which is typical for AP payments), the fixed dimension is applied to the AP ledger account too late in the settlement process. This means settlement THINKS the AP ledger account on the payment is different than the invoice (because the fixed dimension value isn't known yet), and creates the adjusting entry as necessary. Then right before posting is finished for the adjusting entry, the fixed dimension is applied, which is too late in the process to undo the accounting entry. If you do the settlement of the payment and invoice AFTER posting, the fixed dimension value is there on the payment's accounting entry, so it won't create the additional adjusting entry.

To work around this (if you want to settle with the payment journal), you need to get the fixed dimension value to default onto the payment journal. You do can this by either putting the fixed dimension as a default on your vendors or on the journal name used for payments. Defaulting from the Journal name is usually a good option for customers because typically the bank ledger account doesn't track that dimension. Or another thing to consider is whether you truly need to track that financial dimension on the AP ledger account. Typically we see customer using the fixed dimensions to zero-fill the dimension, which is almost the same as just not requiring that dimension in the account structure. Depends on your business requirements. :-)

Hope this helps.

Kristi

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Julieta Arenoso 80 on at

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RE: Wrong vendor payment voucher (with settlement)

Hi Kristi. Thanks for your suggestions, I'm going to double check them in our environment.

Anyway, I'm having another issue regarding this additional voucher. I'll describe the process:

1) GL posts a journal with the following lines:

GL Account Payroll (P&L) [50001] 50

GL Account Social Security (P&L) [50002] 50

AP Account Payroll Due [20021] 45

AP Account Social Security Due [20022] 55

2) AP post the payment, with settlement:

AP Account Payroll Due [20021] 45

BK Account Bank XXX [10011] 45

-> Additional voucher:

AP Account Payroll Due [20021] 20 *

AP Account Social Security Due [20022] 25 *

AP Account Payroll Due [20021] 45

* I understand this is the calc:

AP Account Payroll Due 45 (45%)

AP Account Social Security Due 55 (55%)

Total 100

When the payment for 45 is registered (Step 2), another voucher is generated to "reassign" this amount in the "original proportion":

AP Account Payroll Due (Liability) 20 = 45 * 45%

AP Account Social Security Due (Liability) 25 = 45 * 55%

Have you seen this before? Is there a set up we could try changing?

Thanks!!

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Kristi Slininger 66 on at

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RE: Wrong vendor payment voucher (with settlement)

Julieta,

When you settle an invoice and payment, from the OPERATIONAL side (AR/AP subledgers) we know that you intended to settle the vendor payment for 45 with the vendor 'invoice' of 45. Then settlement evaluates if any accouting entries need to be created. This could be for a cash discount, gain/loss or for the 'fixup' entry that I previously described.

When creating the accounting entry for the 'fixup' entry, we compare the AP ledger account from the accounting entry of the invoice and the payment. Because we are now in purely the GL side looking at the accounting entries, we look at the posting types to determine which account entry is the AP ledger account(s). In your example, there are TWO AP ledger accounts (which have a posting type of Vendor summary), 20021 and 20022. From the accounting side, we have no idea which of these AP ledger accounts corresponding to the vendor transactions that were settled, so we pull BOTH of these ledgers accounts to compare to the payment's AP ledger account. We can't assume one account based on the amount either because you can do partial payments.

There is no parameter to control this. We really recommend never having more than one AR or AP ledger account within one voucher to prevent this so settlement's accounting can clearly understand which ledger account are relevant to the documents being settled.

Kristi

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Julieta Arenoso 80 on at

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RE: Wrong vendor payment voucher (with settlement)

Hi Kristi,

Thanks a lot for your reply. We've been running some test, taking your comment in consideration in order to understand why we have this problem with this customer only.

We found out that this issue pops-up in an AX2012 R3 CU8, we've tested in two different environments, but not in an AX2012 R3 CU10. May I understand this as a FIX?

Thanks a mil!

Julieta Arenoso

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Kristi Slininger 66 on at

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RE: Wrong vendor payment voucher (with settlement)

Julieta,

There have been multiple hotfixes in this area. For a while, settlement didn't create any 'fixup' entries if it recognized there was more than one vendor or customer per voucher....it's important to understand I literally mean vendor/customer on the voucher, but not if there was more than one AR/AP ledger account on the transaction's accounting entry.

We were finally able to figure out in MOST scenarios that had multiple vendors or customers how to create the fix-up entry. I can't be very specific in the scenarios because there are a lot of variables that impact these scenarios.

So yes, you may see different results depending your version and whether or not you have HF's loaded. If you have questions on what HF's are relevant for YOUR scenarios, please contact the support team.

Kristi

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Julieta Arenoso 80 on at

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RE: Wrong vendor payment voucher (with settlement)

Hi Kristi.

We finally got the HF and solve this issue.

Thank you!

Regards.

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