Administration, Core Financials, and Project Accounting

[PA15116]

In MAS500 7.3, AR Options / Other tab, we uncheck the "Issue warning for unapplied payment". When we do this and try to save we are required to fill in the AR Settlement Offset Account. This warning option seems only like a advisory field and not something that would trigger GL postings. Can anyone give us insight into the AR Settlement Offset Account - the type of GL account it is and how/ when it works....etc.

Thanks.

[MCarlise]

You are receiving the message because the AR Settlement account is required when you are integrated with AP. Most likely this is the fist time you have changed anything in AR Options. The save triggers the message, not what you are changing.

The AR Settlement account is used when there are AP vendors that are also AR customers. The task Proccess AP-AR Invoice Settlement (in AP) is used to create credit memos in AR to the customer and debit memos in AP to the vendor to reduce your liablity and clear the account balances (you still need to use Apply Payments and Memos to apply them). So the settlement account is a clearing account. When the debit/credit memos are created both use this account. So it should always be zero. Often clearing accounts are on the balance sheet, however since it should remain zero, you can use any account you would like.

[PA15116]

Thank you for your quick response.  It has helped us understand the process.