A Settlement is created to pay off a purchase invoice, these can be full or partial and can be completed in one of two ways.
Creating Settlements from the Invoices Grid
To settle an invoice from the enPurchase Invoices grid, right click on the invoices and select create settlement. This function will allow the selected invoice to be settled.
The invoice details will be displayed as show below. Now select the date you wish to settle the invoice on, this will default to today’s date. The amount and currency will default to that of the invoice; you can change this if you wish. The bank account will default to the default payments account as configured when the nominal ledger was first set up but you can select a different bank account if you wish.
In the example above the invoice was raised when the Euro rate was 1.21 and the rate is now 1.17 at the settlement date. When you click on the next button you can see the full details of this transaction and the difference to be posted to the default P & L on exchange account. You can select a different account if you wish. Please note. Whenever there is an exchange difference on a settlement the user will be asked to confirm the difference at this stage you can cancel the posting and enter a different settlement rate if you wish.
Creating Settlements from the Settlements Grid
The alternative way to settle enPurchase invoices is through the Settlements grid itself, where the user can 'mass settle' invoices rather than performing them one at a time.
From here, the settlement wizard allows the user to select a range of invoices (filtered optionally) for settlement.
Note: Any Purchase credit notes that are assigned to an invoice will be taken into consideration when settling, this amount (presuming that the credit note is posted) will be deducted from the outstanding balance of the invoice. See Purchase Credit Notes <HYPERLINK>