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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / How to use 'Paymen...
Finance | Project Operations, Human Resources, ...
Answered

How to use 'Payment proposal' or 'Settle transactions' in AP/AR Payment journal properly?

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Posted on by Mai.S 370

Hi,

As you know, to book 'payment to vendor' or 'cash receipt from customer', AP/AR payment journal should be created and posted.

There are two options to create journal, 'A. Payment proposal' or 'B. Settle transactions' (otherwise C. Manual)

However, I cannot find exact definition, when to use A or B.

Could you tell me how you handle to use these two options?

Should I recommend to use A, as there are many filtering options as below?

5557.options.jpg

Any advise or reference would be appreciated.

Best regards, Mai

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  • Verified answer
    saurabh bharti Profile Picture
    saurabh bharti 15,039 Moderator on at
    RE: How to use 'Payment proposal' or 'Settle transactions' in AP/AR Payment journal properly?

    Hi Mai,

    A. Payment Proposal: Payment proposal gives you flexibility to derive the payment amount which you need to pay to all the vendors based on criteria defined by you  e.g based on due date, vendor group, Currency, payment method, amount limit etc.... In this case system creates all the expected payment lines without any manual intervention and mark all the invoices for settlement. This is really time saving method when you have more number of vendors to pay in payment cycle e.g. your organization policy is to pay vendors twice a week on Monday and Thursday.

    Recently Microsoft has added feature to automatize this option based on scheduled frequency so based on your organization policy you can completely automize this. Read here :

    exploredynamics365.home.blog/.../

    B. Settle Transactions: In this option you need to create payment line for each vendor manually and also mark all the required transactions for settlement manually . This option should be used when you record ad-hock payments and number of vendor payment lines are minimul.

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: How to use 'Payment proposal' or 'Settle transactions' in AP/AR Payment journal properly?

    Good morning Mai,

    When you create a payment proposal (A) then you will get suggestions of the invoices that should be paid if we talk about vendor payments. Once you controlled and revised them you can then transfer those suggested payments from the payment proposal form to the journal. Doing that results in two things:

    a) The payment lines will be generated and

    b) The selected invoices will be marked for settlement.

    The other option B that you mentioned works basically the same but rather than using the payment proposal form, user enter the amounts to be paid directly into the journal. When doing that the users have to manually select the invoices they want to settle with a specific payment that they make.

    In summary, if you want to compare A and B then you can possibly say that B is the manual way while A is the automatic way to get payment lines and settlements created.

    Best regards,

    Ludwig

  • Verified answer
    Amit@Rise Profile Picture
    Amit@Rise 45 on at
    RE: How to use 'Payment proposal' or 'Settle transactions' in AP/AR Payment journal properly?

    Hi Mai,

    Greetings!

    Payment proposal option helps to create payment journal lines as well as mark corresponding invoices for settlement.

    In settlement option you will have to create lines manually and then mark the required invoice for settlement.

    So option A is less manual compared to B.

    Cheers!

    Regards,

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: How to use 'Payment proposal' or 'Settle transactions' in AP/AR Payment journal properly?

    Good morning Mai,

    There have been a number of answers provided by the community.

    Did they clarify the issue or is there anything else that is left open / not answered where you need some help with?

    Best regards,

    Ludwig

  • Mai.S Profile Picture
    Mai.S 370 on at
    RE: How to use 'Payment proposal' or 'Settle transactions' in AP/AR Payment journal properly?

    Hi all,

    Thank you for clarifying my question.

    Now I know there is a definite difference how to handle each option.

    You all made my day.

    Thank you and best regards, Mai

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