Customer Settlement
When a customer has both open invoices and open credits (credit memos or advances), a settlement matches them and closes what offsets, without any money changing hands. Save is the posting.
What it is for
On Create, the Clearings tab lists the customer's open posted invoices, memos and advances in the chosen currency. It lists them only if the customer has at least one invoice and at least one memo or advance open; otherwise it says there are no rows to settle. Every settlement is saved as Posted.
Every field in plain words
| Field | What it means | What to put |
|---|---|---|
| Settlement | The number | Given on Create |
| Posting Date | The date it posts on | Required. Locked after Create |
| Transaction Journal | Its journal and numbering | Required. Locked after Create |
| Customer, Name | Whose items are netted | Required. Locked after Create |
| Currency | Only items in this currency are listed | Required. Locked after Create |
Clearings
| Column | What it means | What to put |
|---|---|---|
| Transaction, Origin | The invoice, memo or advance | Filled in |
| Schedule | The invoice instalment | |
| Origin Amount, Settled Amount, Balance Amount | Its amount, cleared so far, left | Read-only |
| Transaction Clearing Amount | How much of it this settlement uses | Positive on invoices, negative on memos and advances. Never more than the balance |
The auto-settle button on the grid fills the amounts for you: it takes the credits in order and applies them to the invoices in order until one side runs out. Lines left at zero are dropped on save.
Scenarios
- A customer paid an advance and was then invoiced. Settle the advance against the invoice.
- A credit memo for returned goods. Settle it against the oldest open invoice.
What posts
| Document | When | Debit | Credit |
|---|---|---|---|
| Customer Settlement | Save | The customer's account for the memos and advances used | The customer's account for the invoices cleared; any exchange gain or loss on foreign-currency items |
The amounts are split over the same accounts and dimensions as the original documents. The lines are laid out by the posting keys of this screen on Process Post Key in General ledger. Undoing a posting is Reverse on the toolbar.
What it is connected to
If something looks wrong
- "No rows for settlement of selected customer ..." The customer has no invoice, or no memo or advance, open in that currency.
- "No transactions in the grid to settle" / "Need at least one Invoice and one Memo/Advance with an available balance to net". Auto-settle needs both sides.
- "Add at least one Invoice, Memo or Advance line to settle". The grid is empty.
- "LineID: ... - Transaction Cleared Amount must be greater than zero and cannot exceed the Balance Amount". Invoice lines take a positive amount up to the balance.
- "LineID: ... - Transaction Cleared Amount must be negative for Memo/Advance lines and cannot exceed the Balance Amount". Credit lines take a negative amount.
- "Line ID: ... - Customer does not match Transaction ..." The document belongs to another customer.
- "Line ID: ... - Transaction Cleared Amount cannot exceed the outstanding Balance Amount (...)". Someone cleared part of it meanwhile. Lower the amount.