Use the Applications window to apply your receipts or on-account credits. You can apply receipts to any type of transaction except guarantees and standard credit memos. You can apply all or part of a receipt or on-account credit to a single debit item or to several debit items. For example, your customer may send a single check to pay all of one invoice and part of another invoice. Or, a customer may have an on-account credit he will expect you to use with his receipt to close an open debit item.
You can apply receipts to an entire transaction and prorate the receipt amount across all transaction lines. Or, you can apply receipts to specific transaction lines. See: Applying Receipts in Detail.
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. You can apply a receipt to a related customer's debit items if the Related Customers check box is checked. You cannot apply an unidentified receipt; you must specify the customer who remitted the receipt before you can apply it to a transaction.
You can also combine on-account credits with a customer's receipts to increase the amount you can apply to debit items, leave partial receipt amounts unapplied, or place an amount on-account.
Note: On-account credits (credit memos) are different from on-account cash on a receipt. See: Creating On-Account Credit Memos.
If you leave partial receipt amounts unapplied or if a receipt underpays an invoice, then you can write off the receipt. See: Writing Off Receipts.
You can even apply receipts against other open receipts. See: Receipt-to-Receipt Applications.
You can apply receipts in the same foreign currency as your transactions. Enter foreign currency exchange rate information using predefined exchange rates, or enter your own rate. When you post a foreign currency receipt application to the general ledger, Receivables records a realized gain or loss amount. See: Foreign Currency Transactions.
If you have set up Receivables to use cross currency receipts, you can apply a receipt in one currency to one or more transactions in different currencies. See: Applying Cross Currency Receipts.
To validate the application amount, Receivables uses the transaction type of the debit item to which you are applying the receipt. See: Transaction Types.
If the transaction type allows natural application only, then you cannot enter an amount that would reverse the sign of the debit item.
If the transaction type allows overapplication, then you can apply a receipt to a closed debit item. To access closed invoices from the Receipts workbench, you must check the Show Closed Invoices check box from the Tools menu.
Attention: If you want to automatically manage receipts for refunds as well as claim creation, then the transaction type of the debit item to which you are applying the receipt must be set to allow natural application only.
See: Automated Receipt Handling for Credits, How AutoLockbox Creates Claims, and QuickCash.
If the transaction type specifies Natural Application only, then you must enter an amount that brings the balance due closer to zero.
Receivables uses the Application Rule Set assigned to this debit item's transaction type to determine how to reduce the open line, tax, freight, and late charge amounts. If there is no application rule set assigned to this item's transaction type, Receivables uses the application rule set in the System Options window. See: Receivables Application Rule Sets.
If you are using Trade Management, then you can create a claim for invoice-related short payments in the Applications window. When you create a claim for an invoice, Receivables places the invoice in dispute until the claim is resolved.
For individual receipt over payments or short payments that are not related to any invoice, you can create a claim using the Claim Investigation application type. You can create multiple claim investigation applications per receipt.
Claims that you create in the Applications window are then automatically passed to Trade Management for tracking and further research. See: Working with Claims.
You can net receipts in Receivables. To net receipts, you apply a receipt against another open receipt, and then apply the resulting unapplied receipt balance to a transaction.
Open receipts include receipts that have:
Unapplied cash
On-account cash
Open claim investigation applications
You can also apply one receipt against another receipt that has an open claim investigation application. A claim investigation application results from either a noninvoice-related deduction or an overpayment. See: Working with Claims.
Note: Receivables automatically updates Trade Management when you make a receipt application against a second receipt that has an open claim investigation.
Attention: When netting receipts, both receipts must be in the same currency.
You can also net a QuickCash receipt against multiple open receipts. See: QuickCash.
Prerequisites
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 transactions 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, transaction dates, balances, or PO numbers. Leave a field blank if you do not want to limit the search to transactions matching that criteria.
Note: If the Show Billing Number system option check box is selected, then Receivables displays two transaction Numbers fields. You can enter a balance forward bill number in the first field, or use the second field to enter a transaction number.
Note: If you want to include closed invoices in your query, then you must check the Show Closed Invoices check box from the Tools menu.
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 transactions you want to pay first are listed first in the Applications window.
Specify which types of transactions to include in your query by checking or unchecking the appropriate check boxes.
Note: If a customer location is specified in the Location field, then Receivables ignores this check box and selects only the specified customer's transactions for receipt application.
Note: If you check the Disputed Transactions box, then you must also indicate the classes of disputed transactions that you want to include in this query.
Use the AR: Default Open Receipts for Application profile option to always include open receipts.
Enter an Apply Date (optional). 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 transactions included in this application.
To view the transactions matching your selection criteria without marking them for application, choose Preview. This lets you choose to which transactions you want to apply this receipt (see next step).
To automatically mark the transactions matching your selection criteria for application, choose Apply. Receivables selects each item for application in the order queried until the full amount of the receipt is applied. Marked transactions will be paid in full with any discounts automatically taken.
If you chose Preview, select transactions for application by checking the Apply check box. Receivables enters the Amount Applied and updates the Unapplied Amount of the receipt and the Balance Due for each transaction.
Note: If applying this receipt against an open receipt, then skip to the next step.
The default amount applied can be either the open amount of the transaction or the unapplied amount of the receipt, but you can change it (for example, if you want to apply this receipt to more than one transaction). Use the AR: Always Default Transaction Balance for Applications profile option to control how Receivables defaults the applied amount.
If you chose Apply, you can either accept how Receivables has marked each transaction for application, or modify this information. Unchecking the Apply check box resets the balance due for that transaction and increases the unapplied amount of the receipt. You can update the Amount Applied, select a different transaction, or leave the receipt partially unapplied.
Note: The default Discount Taken 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.
If applying this receipt against an open receipt, then the amount applied defaults to the greater of either:
the amount remaining on the receipt, or
the amount of the open receipt's open item (unapplied or on-account cash, or open claim investigation application)
To place any remaining amount on account, use the down arrow to insert a new record, then enter 'On Account' in the Apply To field. The default amount is the unapplied amount of the receipt, but you can change it.
If you are using Trade Management, then you can create an invoice-related claim for any short payment, or a noninvoice-related claim for any overpayment.
When you are satisfied with this receipt application, save your work. Receivables updates your customer's account balances.
Navigate to the Receipts window.
Enter or query 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 Apply.
In the Apply To field, from the list of values, select the transaction to which you want to apply this receipt.
Note: If you want to include closed invoices in the list of values, then you must first check the Show Closed Invoices check box from the Tools menu.
Receivables enters the Amount Applied for this receipt and updates the Unapplied Amount of the receipt and the Balance Due for this transaction. If the system option Allow Payment of Unrelated Invoices is set to Yes, you can apply this receipt to an unrelated customer's transactions.
The default amount applied can be either the open amount of the transaction or the unapplied amount of the receipt, but you can change it (for example, if you want to apply this receipt to more than one transaction). Use the AR: Always Default Transaction Balance for Applications profile option to control how Receivables defaults the applied amount.
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 Yes, you can apply these discounts here. Receivables skips this field if this transaction is a credit memo. See: Discounts.
To apply this receipt against specific transaction lines, choose Apply in Detail.
You can apply this receipt against open receipts, as well. See: Receipt-to-Receipt Applications.
Note: To include open receipts in the list of values:
Check the Include Open Receipts box from the Tools menu, or
Use the AR: Default Open Receipts for Application profile option to always include open receipts.
If applying this receipt against an open receipt, then the amount applied defaults to the greater of either:
the amount remaining on the receipt, or
the amount of the open receipt's open item (unapplied or on-account cash, or open claim investigation application)
To apply this receipt to another transaction or open receipt, repeat steps 5 and 6.
To place an amount on account, enter 'On Account' in the Apply To field. The default amount is the unapplied amount of the receipt, but you can change it.
Receivables marks any portion of this receipt that you do not apply or place on-account as 'Unapplied'.
If you are using Trade Management, then complete this step. If not, then skip to the next step.
Receivables integrates with Trade Management to let you record, research, and resolve your customers' short payments and over payments on their receipts. These payment discrepancies are called claims.
You can place any short payment or over payment into claim investigation when entering a receipt in the Applications window. When you save the application, the claim is automatically sent to Trade Management, which then populates the Application Reference field with the claim number.
Use the down arrow to insert a new record, then enter either an invoice related or non-invoice related claim:
To create an invoice related claim for the short payment of a transaction, enter the transaction number in the Apply To field and enter the application amount in the Amount Applied field. Select Trade Management Claim in the Reference Type field; this selection tells Receivables to create a claim on the transaction and pass the claim to Trade Management. The claim amount is the balance due on the transaction.
Additionally, the related invoice is not closed; rather, the invoice remains an open receivable. Receivables puts the invoice in dispute and records a message in AR Notes.
You do not need to assign a receivable activity, because invoice related claims do not generate new accounting entries.
To create a non-invoice related claim for an over payment or short payment that your customer references on a receipt, select Claim Investigation from the list of values in the Apply To field and enter the application amount in the Amount Applied field. The default amount is the unapplied amount of the receipt, but you can change it.
If your customer deducts $1,000 from the receipt for an unknown reason, then you should enter the claim amount as <$1,000>, because an unresolved deduction represents an increase in the unapplied amount of the receipt.
If your customer over pays $1,000 on the receipt for an unknown reason, then you should enter the claim amount as $1,000, because an unresolved over payment represents a reduction in the unapplied amount of the receipt.
Select a receivable activity for this claim from the list of values in the Activity field; the receivable activity provides the accounting for the claim investigation application. The list of values includes activities that you defined using the Claim Investigation activity type. The Reference Type field defaults to Trade Management Claim.
Receivables views a non-invoice related claim as an open receipt credit or unresolved cash. The receipt remains open until all claim investigation applications on the receipt are resolved. You can enter an unlimited number of non-invoice related claims in this window.
Attention: For both types of claims, if you want to create a new claim, then you must leave the Application Reference field blank. Otherwise, you can associate this application with an existing unresolved claim by selecting a claim number from the list of values.
For more information, see: Working with Claims.
When you are satisfied with this receipt application, save your work. Receivables updates your customer's account balances.