Automatic Settlement functionality in ax2012

Hi Experts

Can i knwo what is use of Automatic Settlement functionality in ax2012.Avalable in AP/AR paremeters

If i activate this check box how the invoice will settle automatically.

Where exactely it will useful .


This would automatically settle open invoices against payments or credit notes if selected. So you enter a payment and do not assign it to an invoice and it automatically applies it to the oldes open invoice.


Can you explain in detail plz