Applying Receipts
Use the Applications window to apply your receipts or on-account credits. You can apply all or part of a receipt or on-account credit to a single debit item or to several debit items. For example, your customer may send a single check to pay all of one invoice and part of another invoice. Or, a customer may have an on-account credit he will expect you to use with his receipt to close an open debit item. You cannot apply an unidentified receipt; you must specify the customer who remitted the receipt before you can apply it to a transaction.
You can apply a receipt to an unrelated customer's debit items if the system option Allow Payment of Unrelated Invoices is set to Yes. You can apply receipts to any type of transaction except guarantees and standard credit memos.
You can also combine on-account credits with a customer's receipts to increase the amount you can apply to debit items, leave partial receipt amounts unapplied, or place an amount on-account.
You can apply receipts in the same foreign currency as your transactions. Enter foreign currency exchange rate information using predefined exchange rates, or enter your own rate. When you post a foreign currency receipt application to the general ledger, Receivables records a realized gain or loss amount. See: Foreign Currency Transactions.
If you have set up Receivables to use cross currency receipts, you can apply a receipt in one currency to one or more transactions in different currencies. See: Applying Cross Currency Receipts.
Receivables uses the transaction type of the debit item to which you are applying the receipt to validate the application amount. If the transaction type does not allow overapplication, you cannot enter an amount that would reverse the sign of the debit item. If the transaction type specifies Natural Application only, you must enter an amount that brings the balance due closer to zero. See: Transaction Types.
Receivables uses the Application Rule Set assigned to this debit item's transaction type to determine how to reduce the open line, tax, freight, and finance charge amounts. If there is no application rule set assigned to this item's transaction type, Receivables uses the application rule set in the System Options window. See: Receivables Application Rule Sets.
Prerequisites
To automatically apply a receipt to several transactions:
1. Navigate to the Receipts window.
3. If the receipt is unidentified, enter the name or number of the customer who remitted this receipt.
5. Specify the transactions to which you want to apply this receipt by entering Transaction selection criteria. For example, enter a range of transaction Types, transaction Numbers, Due Dates, or Balances. Leave a field blank if you do not want to limit the search to transactions matching that criteria.
Note: If the profile option AR: Show Billing Number is Yes, Receivables displays two transaction Numbers fields. You can enter a Consolidated Billing Invoice number in the first field; use the second field to enter a transaction number. See: Consolidated Billing.
6. Specify how to order selected transactions by entering Sort Criteria (optional). You can mark transactions by Balance Due, Due Date, Invoice Date, or Invoice Number and in Ascending or Descending order. For example, to order items with the largest balances first, choose Balance Due, Descending.
Suggestion: Use sort criteria to ensure that the transactions you want to pay first are listed first in the Applications window.
7. Specify which types of transactions to include in your query by checking or unchecking the appropriate check boxes. You can choose Invoices, Credit and Debit Memos, Deposits, Chargebacks, and Disputed Transactions.
8. Enter an Apply Date (optional). If the receipt date is later than the current date, the default is the receipt date; otherwise the default is the current date. Receivables uses this date as the application date for all transactions included in this application.
9. To view the transactions matching your selection criteria without marking them for application, choose Preview. This lets you choose to which transactions you want to apply this receipt (see next step).
To automatically mark the transactions matching your selection criteria for application, choose Apply. Receivables selects each transaction for application in the order queried until the full amount of the receipt is applied. Marked transactions will be paid in full with any discounts automatically taken.
10. If you chose Preview, select transactions for application by checking the Apply check box. Receivables enters the Amount Applied and updates the Unapplied Amount of the receipt and the Balance Due for each transaction. The default Amount Applied is either the open amount of the transaction or the unapplied amount of the receipt, but you can change it (for example, if you want to apply this receipt to more than one transaction). For more information, refer to the profile option AR: Cash-Default Amount Applied in: Overview of Receivables Profile Options.
If you chose Apply, you can either accept how Receivables has marked each transaction for application, or modify this information. Unchecking the Apply check box resets the balance due for that transaction and increases the unapplied amount of the receipt. You can update the Amount Applied, select a different transaction, or leave the receipt partially unapplied.
Note: The default Discount Taken is the amount of earned discounts available for this application, but you can change it. If the system option Allow Unearned Discounts is set to Yes, you can apply these discounts here. Receivables skips this field if this transaction is a credit memo. See: Discounts.
11. To place any remaining amount on account, use the down arrow to insert a new record, then enter 'On Account' in the Transaction Number field. The default amount is the unapplied amount of the receipt, but you can change it.
12. When you are satisfied with this receipt application, save your work. Receivables updates your customer's account balances.
Manually Applying Receipts
To manually apply a receipt to one or more transactions:
1. Navigate to the Receipts window.
3. If the receipt is unidentified, enter the name or number of the customer who remitted this receipt.
5. Select the transaction to which you want to apply this receipt from the list of values. Receivables enters the Amount Applied for this receipt and updates the Unapplied Amount of the receipt and the Balance Due for this transaction. If the system option Allow Payment of Unrelated Invoices is set to Yes, you can apply this receipt to an unrelated customer's transactions.
The default Amount Applied is either the open amount of the transaction or the unapplied amount of the receipt, but you can change it (for example, if you want to apply this receipt 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: The default Discount is the amount of earned discounts available for this application, but you can change it. If the system option Allow Unearned Discounts is Yes, you can apply these discounts here. Receivables skips this field if this transaction is a credit memo. See: Discounts.
6. To apply this receipt to another transaction, repeat step 5.
7. To place an amount on account, enter 'On Account' in the Transaction Number field. The default amount is the unapplied amount of the receipt, but you can change it.
Receivables marks any portion of this receipt that you do not apply or place on-account as 'Unapplied'.
8. When you are satisfied with this receipt application, save your work. Receivables updates your customer's account balances.
See Also
Applications Field Reference
Chargebacks and Adjustments
Reapplying Receipts
Reviewing Receipts and Applications
Applying On-Account Credits
Applied Receipts Register
Unapplied Receipts Register
Deposited Cash Report - Applied Detail/Open Detail Reports
Enter receipts