You can use the Vendorsform to create a proposal of compensation transaction from a vendor account in order to automate settlements between the vendor account and a customer account. A proposed settlement report is automatically generated, and you can accept the proposal or modify it. When the settlement is done, you can post the proposed settlements in the general journal.

1. Click Accounts payable> Common Forms> Vendor Detailsto open Vendorsform.

2. Enter the required details to create a vendor account, or select an existing vendor account.

   Note
   For more information, see "Vendors (form)" in the Applications and Business Processes Help.

3. On the Generaltab, in the Customer accountfield, select the customer account that is to be compensated.

4. Click Transactionsto open the Vendor transactionsform, and then select one or more transactions to compensate.

   Note
   Use the <CTRL> or <SHIFT> key to select more than one transaction.

5. Click Compensationto open the Compensation of customer/vendor transactionsform.

6. In the lower pane, on the Overviewtab, select the check box in order to select the customer transaction that is to be compensated with the vendor transaction.

7. Click Create payment proposalto open the Transfersform.

8. In the General journalfield, select the ledger journal in which the compensation transactions will be created.

9. In the Name of journalfield, select the ledger journal batch number.

10. In the Posting date used when updatingfield, select the date for the compensation transaction.

11. Select the Print compensation report?check box to print the compensation report.

12. Click OKto generate a Proposal of compensation transactionreport.