Example of Using an AutoCash Rule Set

This example demonstrates how to create and use an AutoCash rule set.

You create an AutoCash rule set to manage the payments received from Global Freight Carriers. You have an earned discount arrangement with this company but with no payment or discount grace days, and you don't add late charges for payments received beyond the due date.

Create the AutoCash Rule Set

Create the AutoCash Rule set using these values:

Field	Value
Open Balance Calculation: Discounts	Earned Only
Open Balance Calculation: Late Charges	No
Open Balance Calculation: Items in Dispute	No
Automatic Matching Rules: Apply Partial Receipts	Yes
Automatic Matching Rules: Remaining Remittance Amount	On Account
AutoCash Rule	1. Match Payment with Invoice
AutoCash Rule	2. Clear The Account
AutoCash Rule	3. Apply To The Oldest Invoice First

Process a Payment Using the AutoCash Rule Set

Global Freight Carriers has the following outstanding invoices, none of which are in dispute:

Number	Amount Remaining	Due Date	Discount Date	Discount Amount
123	$200	11-DEC-02	01-DEC-02	$20
124	$300	08-DEC-02	30-NOV-02	$30
125	$150	13-DEC-02	28-NOV-02	$15

A payment was entered for Global Freight Carriers for $600 with a deposit date of 10-DEC-02.

Using the AutoCash rule set that you created, Receivables processes the payment in this way:

1. AutoCash rule 1, Match Payment with Invoice, fails because none of the customer open items have a remaining amount due that is equal to the amount of the receipt ($600).

2. Receivables looks at AutoCash rule 2.

3. AutoCash rule 2, Clear the Account, fails because the customer calculated account balance ($650) isn't the same as the amount of the receipt.

4. Receivables looks at AutoCash rule 3.

5. Receivables uses AutoCash rule 3, Apply to the Oldest Invoice First.

   1. Receivables first applies the receipt to the oldest invoice, Invoice 124 for $300, and performs these calculations:

      • Since the discount date of 30-NOV-02 has passed and the Discount field is set to Earned Only, the $30 discount is no longer available. The amount due remaining for this invoice is now equal to either $0 or the amount of any late charges previously assessed for this item.

      • Because the Late Charges option is set to No, late charges aren't included in the customer open balance calculation. The remaining receipt amount is now $300.00.

   2. Receivables now applies $200 to the next oldest invoice, Invoice 123, and performs these calculations:

      • As with Invoice 124, the discount date for Invoice 123 has passed and the $20 discount is no longer available. The amount due remaining for this invoice is now equal to either $0 or the amount of any late charges previously assessed for this item.

      • Because the Late Charges option is set to No, late charges aren't included in the customer open balance calculation. The remaining receipt amount is now $100.

   3. Receivables applies the remaining $100 to Invoice 125 ($150) as a partial receipt because the Apply partial receipts option is set to Yes.

      Note: If the Apply partial receipts option were set to No, Receivables couldn't apply the remaining amount to Invoice 125. Instead, it would be placed on account, because the Remaining Remittance Amount option is set to On Account.

      • As with the other invoices, the discount date for Invoice 125 has passed and the $15 discount is no longer available.

      • If there are no late charges for this invoice, the amount due remaining is reduced from $150 to $50, and remains open.