Customer and vendor balances netting for Dynamics 365 Finance and operations

#netting

Dynamics 365 Finance

The process of netting customer and vendor balances in Dynamics 365 Finance and Operations (D365 F&O) involves consolidating the amounts owed to and from customers and vendors to arrive at a net balance.
Netting is used to simplify accounting and reduce the number of transactions processed.
The netting process involves identifying open transactions, calculating net balances, adjusting for currency and aging, reviewing and reconciling, and documenting and maintaining records.
To perform netting in D365 F&O, you need to create a bridging account, set up a new journal for netting, and create a netting agreement to map customers and vendors against each other.
The netting agreement helps to map to the bridging account.
The netting workspace in the cash and management module allows you to view all customer and vendor pairs and their open balances.
You can manually select free text invoice lines to settle against vendor open transactions.
Once you have marked the customer and vendor open transactions, you can post them using the standard post button.

Registered users can view the full text for FREE!

#netting