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Suggested answer

AR AP netting off

Posted on by 1,162

HI expert,

I'm looking for AP - AR invoice nettoff/auto settle in D365 FO. is there standard functionality ? 

or is there any workaround to handle this transaction ?

thanks in advance

  • Vivek6589 Profile Picture
    Vivek6589 on at
    RE: AR AP netting off

    Auto settling of invoices between AP and AR is not available.

    We used the below workaround.

    Using a general journal, select the vendor on the account side and customer on the offset account side.

    Then use the settle transactions form, to select the invoices you would like to settle.

    This will settle invoices on one side and transfer the balance to the other side where you can again use the transactions form to settle the open transactions.

    Note that this works only if one voucher feature is enabled. If not, you will have to use a suspense account as an intermediate step.

    Thanks.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: AR AP netting off

    Hi Agus,

    You are right, the reimbursement functionality that is available for customer would be able doing that but it might not be able handling all cases.

    An alternative are the methods of payments.

    If you set up a specific method of payment for customer A that has vendor A selected as the payment account  and vice versa then this might work as well.

    Tried this once in AX2012 but not in D365FO.

    Please check test this especially against the background of the one voucher GL parameter restriction to see if this one might work.

    If this alternative 'method of payment' workaround does not do the job then you might think about some kind of modification for example by coding something, using PowerAutomate or a process that leverages Electronic Reporting.

    Best regards,

    Ludwig

  • agus Profile Picture
    agus 1,162 on at
    RE: AR AP netting off

    hi morning ludwig,

    Is that for intercompany transactions or others? ==> it is not related to Interco transaction, still in same LE.

    scenario in this company only like this :

    "we issue invoice (sale) to customer A (AR) and also customer A becomes our Supplier, company also purchase the goods (AP)."

    at the end of month, accounting need settle the invoices each other between AR sides and AP sides, until accounting get "Nett" balance between of them. so accounting need feature to auto settle AP & AR invoices"

    I thought "reimbursement" features able to handle such transaction, because it has link AP & AR master., but seems "only" transfer negative voucher to AP.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: AR AP netting off

    Hi Agus,

    Is that for intercompany transactions or others?

    Would be great if you could provide some additional details on this.

    Also, please double check with your accounting team that such a net-off is allowed. Most accounting standards I am familiar with don't allow such an automatic netting unless there are specific contracts / agreements in place.

    Best regards,

    Ludwig

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