Use the Applications window to manually apply receipts that are in one currency to one or more transactions in different currencies. For example, you can apply a USD receipt to one invoice denominated in euros (EUR) and another in Canadian dollars (CAD). You can apply receipts to invoices, debit memos, and chargebacks.
You can apply a receipt to an unrelated customer's debit items if the system option Allow Payment of Unrelated Invoices is set to Yes.
To apply cross currency receipts, define a Suspense Account for your ledger. See: Setting Up Cross Currency Receipts.
Suggestion: To help you manage cross currency receipt applications, we recommend that you set up the Applications window to display the fields shown in the section Applying Cross Currency Receipts - Examples. Since the Applications window is a folder form, you can choose which fields to display and in what order they will appear. For example, to include the Balance Due field in the window, choose Show Field from the Folder menu, then choose Balance Due from the list of available fields. Receivables will insert the field at the cursor's current location. You can also reposition fields by choosing Move Left or Move Right from the Folder menu.
When you post a cross currency receipt application to the General Ledger, Receivables records a realized gain or loss amount. A realized gain or loss occurs when the exchange rate changes between the invoice date and the receipt date. See: Calculating the Foreign Currency Exchange Gain or Loss.
You can also use the Search and Apply window to automatically select a range of invoices for cross currency receipt application. See: Automatically Selecting Invoices for Cross Currency Receipt Application.
Use the Cross Currency Exchange Gain/Loss Report to review your cross currency receipt applications and the foreign exchange gain or loss for each. See: Cross Currency Exchange Gain/Loss Report.
Prerequisites
Navigate to the Receipts window.
Enter or query the receipt to apply. See: Entering Receipts.
If the receipt is unidentified, enter the Customer or Customer Number who remitted this receipt.
Choose Apply.
Select the transaction to which you want to apply this receipt from the list of values. Receivables displays the balance due in both the invoice currency (Balance Due) and your functional currency (Balance Due Base).
Enter the amount to apply to this transaction (based on your customer's remittance information) in the Amount Applied field. Receivables performs the following:
converts the amount to your functional currency and displays the result in the Amount Applied Base field.
updates the balance due in both the invoice currency (Balance Due) and your functional currency (Balance Due Base).
Enter either the Cross Currency Rate used to convert the transaction amount to the receipt amount or the Allocated Receipt Amount. If you enter the Cross Currency Rate, Receivables calculates the Allocated Receipt Amount, and vice versa.
Receivables calculates the Exchange Gain/Loss for this application.
To apply this receipt to another transaction, repeat steps 5-7.
Note: The default Discount is the amount of earned discounts available for this application, but you can change it. If the system option Allow Unearned Discounts is set to Yes, you can apply these discounts here. Receivables skips this field if this transaction is a credit memo. See: Discounts.
To place any remaining amount on account, create a separate application and enter 'On Account' in the Apply To field. The default amount is the unapplied amount of the receipt, but you can change it.
When you are satisfied with this receipt application, save your work. Receivables updates your customer's account balances.
You can use the Search and Apply window to automatically select transactions for cross currency receipt application. Use this window to select transactions for application by entering selection criteria, such as a range of open balances, transaction types, or due dates.
If you have set up your system to use Cross Currency receipts, Receivables displays a Cross Currency check box in the Search and Apply window. Check this box to apply a receipt to transactions in different currencies.
If you set Cross Currency to Yes, then Receivables:
selects all transactions that meet your selection criteria, regardless of their currency.
disables Apply (in this case you can only preview selected transactions; you need to manually create each cross currency application).
If you set Cross Currency to No, Receivables limits its search to transactions that are in the same currency as the receipt.
Navigate to the Receipts window.
Query or enter the receipt to apply. See: Entering Receipts.
If the receipt is unidentified, enter the name or number of the customer who remitted this receipt.
Choose Search and Apply.
Specify the invoices to which you want to apply this receipt by entering Transaction selection criteria. For example, enter a range of transaction Types, transaction Numbers, Due Dates, or Balances. Leave a field blank if you do not want to limit the search to transactions matching that criterion.
Specify how to order selected transactions by entering Sort Criteria (optional). You can mark transactions by Balance Due, Due Date, Invoice Date, or Invoice Number and in Ascending or Descending order. For example, to order items with the largest balances first, choose Balance Due, Descending.
Suggestion: Use sort criteria to ensure that the invoices you want to pay first are listed first in the Applications window.
Specify the type of transactions to include for this receipt application. For example, check the Invoices, Debit Memos, and Disputed Transactions check boxes to include these transactions.
Check the Cross Currency box. This lets you apply this receipt to transactions regardless of their currency.
Enter an Apply Date. If the receipt date is later than the current date, the default is the receipt date; otherwise the default is the current date. Receivables uses this date as the application date for all invoices included in this application.
Choose Preview.
Select the invoices to which you want to apply this receipt. See: Applying Cross Currency Receipts.
Note: The default Discount is the amount of earned discounts available for this application, but you can change it. If the system option Allow Unearned Discounts is set to Yes, you can apply these discounts here. Receivables skips this field if this transaction is a credit memo. See: Discounts.
When you are satisfied with this receipt application, save your work. Receivables updates your customer's account balances.