Applying On-Account Credits
Receivables lets you apply on-account credits to your customer's open debit items. For example, your customer has $200 on-account. You can apply the on-account credit to one or more open debit items to either reduce or close the on-account credit and your customer's outstanding balance.
Prerequisites
To apply an on-account credit to a transaction:
1. Navigate to the Transactions Summary window.
2. Query the on-account credit to apply.
4. Select the transaction to which you want to apply this on-account credit from the list of values. Receivables enters the Amount Applied and updates the Unapplied Amount of the on-account credit and the Balance Due for this transaction.
The default Amount Applied is the balance due for this transaction, unless the balance due is greater than the amount of this on-account credit. In this case, the default Amount Applied is the unapplied amount of the on-account credit. You can accept this amount or enter a different amount (for example, if you want to apply this on-account credit to more than one transaction). For more information, refer to the profile option AR: Cash-Default Amount Applied in: Overview of Receivables Profile Options.
Note: Receivables uses the transaction type of the debit item to which you are applying credit to validate the application amount. If the transaction type forces natural applications only, you must enter an application amount which brings the debit item's balance closer to zero. If the transaction type does not allow overapplication, you cannot enter an amount that would reverse the sign of the balance of the debit item.
5. To apply this on-account credit to another transaction, repeat step 4.
6. When you are satisfied with the application of this on-account credit, save your work. Receivables updates your customer's account balances.
Applying a receipt with an on-account credit
Receivables lets you apply a receipt with an existing on-account credit to close one or more of your customer's open debit items. For example, your customer receives goods totaling $500, but they are not satisfied with their purchase. You agree to credit their account $100. When the customer remits payment or $400, you can simultaneously apply this receipt with the on-account credit to close both the open invoices and their on-account credit.
To apply an on-account credit in conjunction with a receipt:
1. Navigate to the Receipts or Receipts Summary window.
4. Select the open transactions and the on-account credit from the list of values.
5. Apply the receipt to the on-account credit and the open debit items until the Amount Applied is zero. See: Manually Applying Receipts.
See Also
Applying Receipts
Querying Credit Memos and On-Account Credits
Updating Credit Memos and On-Account Credits
Enter transactions