AutoCash Rule Sets
Define AutoCash Rule Sets to determine the sequence of AutoCash Rules that Post QuickCash uses to update your customer's account balances. You specify the sequence and the AutoCash Rules for each AutoCash Rule Set. The AutoCash Rule Sets you define display as list of values choices in the Customer Profile Classes window.
You assign an AutoCash Rule Set to a customer credit profile class in the Customer Profile Classes window. Receivables provides a default AutoCash Rule Set when you assign a customer to a credit profile, but you can modify individual AutoCash Rule Set assignments at both the customer and customer site levels. If you do not assign an AutoCash Rule Set to a customer's credit profile, and you enter a receipt for this customer, Receivables uses the AutoCash Rule Set that you entered in the System Options window along with the number of Discount Grace Days you specified in this customer's credit profile to determine this receipt application. If you assign an AutoCash Rule Set to a customer, but none of the AutoCash Rules apply, Receivables enters the remaining amount as either Unapplied or On-Account.
If you have set up your system to use bank charges and a tolerance limit, Post QuickCash will also consider these amounts if the current AutoCash rule fails (this is true for all rules except 'Apply to the Oldest Invoice First'). If it finds a match, Post QuickCash applies the receipt; otherwise, it looks at the next rule in the sequence. For more information, see: Matching Using Bank Charges and Tolerance Limit.
You can disable an existing AutoCash Rule Set by changing its status to Inactive and then saving your work.
Prerequisites
To define an AutoCash Rule set:
1. Navigate to the AutoCash Rule Sets window.
2. Enter the Name of this AutoCash rule set.
3. Enter a description for this AutoCash rule set (optional).
4. Enter the type of Discount you want to automatically give to your customer for this AutoCash Rule Set. Choose one of the following Discount options:
Earned Only: Your customer can take earned discounts according to the receipt terms of sale. You negotiate earned discount percentages when you define specific receipt terms. You can enter this option if Unearned Discounts is set to Yes in the System Options window. In this case, Receivables only allows earned discounts for this AutoCash Rule Set.
Earned and Unearned: Your customer can take both earned and unearned discounts. An unearned discount is one taken after the discount period passes. You cannot choose this option if the system option Unearned Discounts is set to No.
None: Your customer cannot take discounts (this is the default).
5. To include items in dispute when calculating your customer's open balance, check the Items in Dispute check box.
6. To include finance charges when calculating your customer's open balance, check the Finance Charges check box.
7. Define the Automatic Matching Rule for this AutoCash Rule set.
8. If this rule set will include the Apply to the Oldest Invoice First rule, choose how you want to apply any Remaining Remittance Amount. Receivables uses this value to determine how to enter the remaining amount of the receipt if none of the AutoCash Rules within this rule set apply. Choose 'Unapplied' to mark remaining receipt amounts as Unapplied. Choose 'On-Account' to place remaining receipt amounts On-Account.
9. To automatically apply partial receipts when using the Apply to the Oldest Invoice First rule, check the Apply Partial Receipts check box. A partial receipt is one in which the receipt minus the applicable discount does not close the debit item to which this receipt is applied.
The applicable discount that Receivables uses for this rule depends upon the value you entered in the Discounts field for this AutoCash Rule Set. If you exclude finance charges (by setting Finance Charges to No) and the amount of your receipt is equal to the amount of the debit item to which you are applying this receipt minus the finance charges, Receivables defines this receipt as a partial receipt. In this case, Receivables does not close the debit item because the finance charges for this debit item are still outstanding.
If Apply Partial Receipts is set to No, this AutoCash Rule Set will not apply partial receipts and will either mark the remaining receipt amount 'Unapplied' or place it on-account, depending on the value you entered in the Remaining Remittance Amount field (see step 8).
10. Enter a Sequence number to specify the order of each rule in this AutoCash Rule Set (optional). Receivables uses the rule assigned to sequence 1, then sequence 2, and so on when applying receipts using this AutoCash Rule Set.
11. Enter one or more AutoCash Rules for this AutoCash rule set. Choose from the following AutoCash rules:
Apply to the Oldest Invoice First: This rule matches receipts to debit items starting with the oldest debit item first. This rule uses the transaction due date when determining which transaction to apply to first. This rule uses the values you specified for this AutoCash Rule Set's open balance calculation to determine your customer's oldest outstanding debit item.
Post QuickCash uses the next rule in the set if any of the following are true:
- all of your debit items are closed
- the entire receipt amount is applied
- it encounters a partial receipt application and Allow Partial Receipts is set to No for this AutoCash Rule Set
- the next oldest debit item includes finance charges and Finance Charges is set to No for this AutoCash Rule Set
This rule marks any remaining receipt amount 'Unapplied' or places it on-account, depending on the value you entered in the Remaining Remittance Amount field for this AutoCash Rule set (see step 8).
Clear the Account: Post QuickCash uses this rule only if your customer's account balance exactly matches the amount of the receipt. If the receipt amount does not exactly match this customer's account balance, Post QuickCash uses the next rule in the set. This rule calculates your customer's account balance by using the values you specified for this AutoCash Rule Set's open balance calculation and the number of Discount Grace Days in this customer's profile class. This rule also includes all of this customer's debit and credit items when calculating their account balance. This rule ignores the value of the Partial Payments option.
This AutoCash Rule uses the following equation to calculate the open balance for each debit item:
Open Balance = Original Balance + Finance Charges - Discount
Receivables then adds the balance for each debit item to determine the customer's total account balance. The 'Clear the Account' rule uses this equation for each invoice, chargeback, debit memo, credit memo, and application of an Unapplied or On-Account receipt to a debit item.
Note: The discount amount for each item depends upon the payment terms of the item and the value of the Discounts field for this AutoCash Rule Set. The number of Discount Grace Days in this customer's credit profile, along with the payment terms assigned to their outstanding invoices, determine the actual due dates of each debit item.
Clear Past Due Invoices: This rule is similar to the 'Clear the Account' rule because it applies the receipt to your customer's debit and credit items only if the total of these items exactly matches the amount of this receipt. However, this rule only applies the receipt to items that are currently past due. A debit item is considered past due if its due date is earlier than the receipt deposit date. This rule considers credit items (i.e. any pre-existing, unapplied receipt or credit memo) to be past due if the deposit date of the receipt is either the same as or later than the deposit date of this pre-existing receipt or credit memo. In this case, this rule uses a pre-existing receipt or credit memo before the current receipt for your AutoCash receipt applications.
If this AutoCash Rule Set's open balance calculation does not include finance charges or disputed items, and this customer has past due items that are in dispute or items whose balances include finance charges, this rule will not close these items. This rule ignores the value of the Partial Payments option.
Clear Past Due Invoices Grouped by Payment Term: This rule is similar to the 'Clear Past Due Invoices' rule, but it first groups past due invoices by their payment term, and then uses the oldest transaction due date within the group as the group due date. When using this rule, Receivables can only apply the receipt if the receipt amount exactly matches the sum of your customer's credit memos and past due invoices.
A debit item is considered past due if the invoice due date is earlier than the deposit date of the receipt you are applying. For credit memos, Receivables uses the credit memo date to determine whether to include these amounts in the customer's account balance. For example, if you are applying a receipt with a receipt date of 10-JAN-93, credit memos that have a transaction date (credit memo date) on or earlier than 10-JAN-93 will be included. Credit memos do not have payment terms, so they are included in each group.
Match Payment with Invoice: This rule applies the receipt to a single invoice, debit memo, or chargeback that has a remaining amount due exactly equal to the receipt amount. This rule uses the values that you enter for this AutoCash Rule Set's open balance calculation to determine the remaining amount due of this customer's debit items. For example, if Finance Charges is No for this rule set and the amount of this receipt is equal to the amount due for a debit item minus its finance charges, this rule applies the receipt to that debit item. If this rule cannot find a debit item that matches the receipt amount, Post QuickCash looks at the next rule in the set. This rule ignores the value of the Partial Payments option.
See Also
AutoCash
Post QuickCash
Assigning Profile Classes to Customers
Discounts
Placing an Item in Dispute
Calculating Finance Charges
AutoCash Rules Report
Accounting System Options
Define system options