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 |
|
Line and Tax Prorate |
|
Prorate All |
|
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 |