Credit processing in Customer Cash Receipt Entry using Unapplied Credit Resequencing
The following example shows how credits (MC and UC) are applied in Customer Cash Receipt Entry when you select the Resequence Unapplied Credits option in SA Administrator Options-Customer. If the company is not set up to resequence unapplied credits and there is an amount remaining, a single unapplied cash transaction record for the total amount is generate, even if that amount came from multiple credits. In both cases, credits selected are applied first
| Order | Type of Transaction | Number & Sequence | Amount |
|---|---|---|---|
| 1 | Misc Credit (MC) | MC 1-99 seq 001 | $100 |
| 2 | Unapplied Cash (UC) | UC 0-00 seq 001 | $ 50 |
| 3 | Misc Credit | MC 2-99 seq 001 | $200 |
| 4 | Unapplied Cash | UC 0-00 seq 002 | $ 25 |
Example 1
A check for $500 and the credits above ($375) are applied against an $800 invoice in Customer Cash Receipt Entry, leaving a $75 balance. The credits selected are applied first, leaving a balance due of $425. The $500 check is applied next. Because the applied amount is greater than the amount due, a new UC record is created for the $75 balance from the applied check.
Example 2
A check for $500 and the credits above ($375) are applied against a $300 invoice in Customer Cash Receipt Entry, leaving a $575 excess balance. The check is applied last. Because the invoice is already paid by the credit, a new UC record is created for $500 (the amount of the check). This leaves $75 that needs to be resequenced among multiple credits.
The last credit that was applied was UC 0-00 seq 002. Because $75 is greater than the last credit applied ($25), a new unapplied cash record, UC-0-00 seq 003, for $25 is created. The next to last credit is the miscellaneous credit for $200. The remaining $50 ($75 - $25) is less than the $200 applied, so a new miscellaneous credit, 2-99 seq 002, is created for the remaining amount. The customer now has $575 in unapplied credits, as shown in this table:
| Type of transaction | Number and sequence | Amount |
|---|---|---|
| Misc Credit | MC 2-99 seq 002 | $ 50 |
| Unapplied Cash | UC 0-00 seq 003 | $ 25 |
| Unapplied Cash | UC 0-00 seq 004 | $500 |