Example of Using Application Rules with Transactions with Mixed Sign Balances
This example shows how the Prorate All application rule is used to apply a payment to a transaction with mixed sign balances. In a transaction with mixed sign balances, the charges in the transaction have a combination of positive and negative signs.
When you apply a payment to a transaction that has mixed sign balances, Receivables applies the payment only to those amounts that have the same sign as the payment. For example, if the payment is for a positive amount (meaning, not a credit memo), Receivables only reduces the charges that have a positive balance. Any negative balances aren't affected.
As with transactions having a same sign balance, Receivables applies any remaining amounts according to the Overapplication rule assigned to the application rule set.
Prorate All with Mixed Sign Balances
Invoice 101 contains these details:
|
Field |
Value |
|---|---|
|
Line |
<$100> |
|
Tax |
$100 |
|
Freight |
$30 |
|
Late Charges |
$10 |
Assume that you're using the Prorate All application rule. Your customer remits a receipt of $100. Receivables prorates the positive receipt amount among the positive tax, freight, and late charges amounts. The line amount of <$100> isn't affected.
This table shows the new balance of Invoice 101 after the receipt application:
|
Field |
Value |
|---|---|
|
Line |
<$100> |
|
Tax |
$28.56 |
|
Freight |
$8.58 |
|
Late Charges |
$2.86 |
This table compares each line type for this invoice before and after you apply the payment using the Prorate All rule:
|
Line Items |
Line Items Remaining |
Tax |
Tax Remaining |
Freight |
Freight Remaining |
Late Charges |
Late Charges Remaining |
|---|---|---|---|---|---|---|---|
|
<$100> |
<$100> |
$100 |
$28.56 |
$30 |
$8.58 |
$10.00 |
$2.86 |
This table shows the amount applied to each line type:
|
Total Amount Applied |
Line Amount Applied |
Tax Amount Applied |
Freight Amount Applied |
Late Charges Amount Applied |
|---|---|---|---|---|
|
100 |
0 |
71.44 |
21.42 |
7.14 |
This table shows the calculations used by the Prorate All application rule:
|
Item |
Calculations |
|---|---|
|
Tax |
100 - (21.42 + 7.14) = 71.44 |
|
Freight |
(30 * 100) / 140 = 21.42 |
|
Late Charges |
3(10.00 * 100) / 140 = 7.14 |