If a payment was entered and posted, but not yet settled with an invoice or other transaction, you can settle the payment and invoice by opening the form from the or forms.

When you click the button, the selected payment and invoice transactions are settled. If the payment and invoice transactions are within the same company, the transactions change status according to the following rules:

  • If an invoice is not settled in full, it remains open.

  • If the amount paid is greater than the amount due, the invoice is settled and closed. The payment transaction for the customer remains open for the amount by which the payment exceeds the amount due.

  • If the payment amount is less than the amount due, the payment amount is subtracted from the amount due, and the invoice remains open. The payment transaction is fully settled and is closed.

  • If the amount paid equals the amount due, the payment and invoice transactions are closed.

For information about cross-company settlements, see About cross-company payment settlements.

  1. Click > Common Forms>


    > Common Forms> .

  2. Select the customer or vendor whose open transactions you want to settle.

  3. Click > .

  4. In the field, select whether to post settlement transactions using the date of the most recent transaction, today's date, or a date that you specify.

  5. Optionally, to designate one of the transactions as the primary payment transaction, select the transaction and click .

    The purpose of a primary payment is to settle all the other transactions that are selected. The transaction date of the primary payment is used in cash discount calculations and exchange rate calculations. If a primary payment is selected, the cross rate can be entered.

  6. Select the check box on the other open transactions to be settled. A red icon indicates that a transaction is already marked for settlement.

  7. You can enter the cross rate for each of the transactions that you selected to be settled with a primary payment transaction in step 6.

  8. Click . The marked transactions are offset against one other.

See Also