Penny difference in Dynamics ax

Introduction: In day to day business activities we need to adjust the invoice amount while receiving the amount from customer and it can be due to many reasons, so for these types of small adjustment dynamics provide penny difference functionality.

Let’s see what we have to do enable this functionality.

Step 1

If we want dynamics to do the adjustment in amount when we do settlement of invoice in A/c receivable then we have to go to
A/c receivable > Setup > Parameters form > Settlement tab > Settlement section.
Here you can see two fields as

“Maximum penny difference” and “Maximum overpayment or underpayment”

Maximum penny difference: In this field you have to put the amount difference which you want to adjust while doing the settlement of customer for example if put $5 in this field and if invoice amount and settlement amount has a difference equal to or less then $5 then penny difference functionality will work.

Maximum overpayment or underpayment: This field fills automatically when you fill the above field and this field show the amount that you can adjust either more from invoice amount or less, for example the received amount can be more or less from the invoice amount when we do enter the payment for particular invoice against the customer.

Step 2

Now you have to define the ledger account for penny difference and for that you have to go to General ledger > Setup > Posting > System account form.

In this form create a new record and in posting type field select “Penny difference in default currency” from the lookup then selects the ledger account in ledger account field and then enter the name.
Do the same thing to create a new record for “Penny difference in secondary currency”.

Theses two steps will enable the functionality for penny difference, now let’s see one example for this.

Suppose we have an invoice of amount $1000 against the XYZ customer
We have setup the Maximum penny difference as $3 and have taken the ABC ledger account for both the penny differences account in system account form.

Now if we received $999 for the invoice of $1000 and when we do this entry in dynamics ax then the $1 is automatically adjust to ledger account ABC and when you see the balance by currency of ABC ledger account, it shows $1

Note: If you setup this functionality and still it’s not working then you have to check that your exchange rate is setup right in General ledger > setup.

Summery: This article explains that how easily you can setup penny difference functionality and adjust the amounts in a different ledger account.

Thanks.