Examples of Using Application Rules

These examples show how each application rule in an application rule set applies a payment to a transaction.

Invoice 123 contains these details:

Field	Value
Line	$1000
Tax	$140
Freight	$200
Total	$1340

Your customer remits a partial payment of $1040 for this invoice. This table shows how Receivables applies the payment using each of the three application rules:

Application Rule	Total Amount Applied	Line Amount Applied	Tax Amount Applied	Freight Amount Applied
Line First - Tax After	1040	1000	40	0
Line and Tax Prorate	1040	912.28	127.72	0
Prorate All	1040	776.12	108.66	155.22

This table shows the calculations used by each application rule:

Application Rule	Calculations
Line First - Tax After	Apply payment to open line amount. Apply any remaining amount to tax.
Line and Tax Prorate	(1040/1140) * 1000 = 912.28 (Receipt Amount / Total Line and Tax) * Line Amount = Line Amount Applied (1040/1140) * 140 = 127.72 (Receipt Amount / Total Line and Tax) * Open Tax Amount = Tax Amount Applied
Prorate All	(1040/1340) x 1000 = 776.12 (Receipt Amount / Invoice Total) * Open Line Amount = Line Amount Applied (1040/1340) x 140 = 108.66 (Receipt Amount / Invoice Total) * Open Tax Amount = Tax Amount Applied (1040/1340) x 200 = 155.22 (Receipt Amount / Invoice Total) x Open Freight Amount = Freight Amount Applied

Line First - Tax After

The Line First - Tax After rule first applies the payment to the line amount, reducing the balance due to zero. Receivables then applies the remaining amount ($40) to the tax charges, reducing the open tax amount to $100. Since the payment isn't enough to close these items, the freight balance isn't affected.

This table compares each line type before and after you apply an amount using the Line First - Tax After rule:

Transaction Amount	Remaining Amount	Line Items	Line Items Remaining	Tax	Tax Remaining	Freight	Freight Remaining
$1340	$300	$1000	$0	$140	$100	$200	$200

Line and Tax Prorate

The Line and Tax Prorate rule applies a proportionate amount to the open line and tax charges. Since the amount applied isn't enough to close these items, the freight balance isn't affected.

This table compares each line type before and after you apply an amount using the Line and Tax Prorate rule:

Transaction Amount	Remaining Amount	Line Items	Line Items Remaining	Tax	Tax Remaining	Freight	Freight Remaining
$1340	$300	$1000	$87.72	$140	$12.28	$200	$200

This table shows the calculations used to arrive at the proportionate amounts:

Item	Calculations
Line Items	1000 - 912.28 = 87.72 Amount Line Items - Line Amount Applied = Open Line Amount
Tax	140 - 127.72 = 12.28 Tax Original - Tax Amount Applied = Open Tax Amount

Prorate All

The Prorate All rule applies a proportionate amount of the receipt to the line, tax, and freight for this transaction.

This table compares each line type before and after you apply an amount using the Prorate All rule:

Transaction Amount	Remaining Amount	Line Items	Line Items Remaining	Tax	Tax Remaining	Freight	Freight Remaining
$1340	$300	$1000	$223.88	$140	$31.34	$200	$44.78

This table shows the calculations used to arrive at the proportionate amounts:

Item	Calculations
Line Items	1000 - 776.12 = 223.88 Amount Line Items - Line Amount Applied = Open Line Amount
Tax	140 - 108.66 = 31.34 Tax Original - Tax Amount Applied = Open Tax Amount
Freight	200 - 155.22 = 44.78 Freight Original - Freight Amount Applied = Open Freight Amount