AutoMatch Combined Weighted Thresholds
When you define an AutoMatch rule set, use the weighted threshold fields to qualify the percentage necessary to allow for an automatic receipt application.
This qualifying percentage considers the importance, or weight, that the AutoApply process should give to the three main components of a transaction: customer information, transaction information, and transaction amount.
How You Use the Combined Weighted Thresholds
Enter the weight, as a percentage, that the AutoApply process should give to the successful matching of customer, transaction, and amount information, when considering a transaction for automatic receipt application.
The total of the three percentages must equal 100. In most cases, you wouldn't give equal weight to each component of a transaction. That is, you wouldn't enter 33, 33, 34 as the three weighted values. In order for AutoApply to apply a receipt to a transaction automatically, the weighted thresholds you enter should reflect your standard business practices.
Enter these weighted thresholds:
-
Customer Weight: Enter the weight to give to matching the customer information on the transaction.
-
Transaction Weight: Enter the weight to give to identifying the correct transaction, either by correct matching or by the Match Receipts By rule document reference.
-
Amount Weight: Enter the weight to give to matching the open balance amount. Because the parts of a transaction amount can play a part in this decision, you can use the Amount Weight Exceptions section to provide additional granularity to the open balance amount considered.
The AutoApply process calculates the percentage score for each match between customer, transaction, and amount. It then derives a final score for each weighted threshold as a percentage of the weighted threshold values, and adds these results to obtain a final score. This final score is then compared against the combined weighted threshold value.
For example, you enter these weighted threshold values:
|
Weight |
Value |
|---|---|
|
Combined Weighted Threshold |
75% |
|
Customer |
20% |
|
Transaction |
70% |
|
Amount |
10% |
During lockbox processing, a transaction is presented for receipt application with these details:
-
Customer account number: 1001
-
Transaction number: 10010
-
Amount due remaining : 127
-
Amount after discount: 120.65
-
Tax remaining: 20
-
Freight Remaining: 7
-
Unearned Discount: 6.35
Lockbox presents a receipt for application with these details:
-
Customer account number: 1005
-
Reference number: 1001
-
Reference amount: 120.65
AutoApply performs these calculations:
-
Customer match: The match between account number 1001 and 1005 has a calculated score of 75% [(1-1/4)*100]. Since the customer weighted threshold value is 20%, this provides a final score of 15%.
-
Transaction match: The transaction match has a calculated score of 80% [(1-1/5)*100]. Since the transaction weighted threshold value is 70%, this provides a final score of 56%.
-
Amount match: The transaction amount match is 100%. Since the amount weighted threshold value is 10%, this provides a final score of 10%.
The sum of the three final scores is 81%, which is greater than the Combined Weighted Threshold value of 75%. Therefore, AutoApply automatically applies the receipt to the transaction.