A/R Payment Distributions
Use this form to enter distribution records that determine how payments are applied to customer accounts and distributed to the General Ledger. Multiple invoice currencies can be used for a payment.
You can select to have the system automatically distribute payments.
- For a corporate customer, the system distributes payments to the invoices and finance charges for the corporate customer based on due date. After this process, any remaining funds are applied to the invoices and finance charges of subordinate customers based on due date. At this point, any outstanding funds cause the system to create an open credit for the corporate customer. This does not generate multi-site distributions.
- Offset payment distributions cannot be deleted using the A/R Payment Distributions form; however, these distributions are deleted when payments are posted or if you manually delete the payments using the A/R Payments form.
Multi-currency processing
When applying payment in a multi-currency environment, all outstanding invoices and credit memos denominated in any currency are converted into a single currency which is the payment currency. All items in the grid are displayed in the payment currency. The invoice balance and payment amount are displayed in the same payment currency. This allows you to offset invoice balances in a single currency of payment. Payment is distributed amount invoices whose value is now represented in the payment currency.
The Payment Applied field on the header is displayed in the payment currency. This amount is calculated by totaling the distributed applied amounts in the payment currency. No additional conversion is required.
Example:
A payment of $268.94 CAD is applied to these four outstanding invoices in Canadian dollars:
- INV000001 - 11.64 CAD
- INV000002 - 68.07 CAD
- INV000003 - 74.82 CAD
- INV000004 - 114.41 CAD
These fields are displayed on the header:
- Payment Exchange Rate: 1.4281011
- Applied (Payment): 268.94
- Applied (Domestic): 188.32
| Invoice | Exchange Rate | Amt to Apply (CAD) | Amt to Apply (Domestic) |
| INV000001 | 1.000 | 11.64 | 8.15 |
| INV000002 | 1.000 | 68.07 | 47.66 |
| INV000003 | 1.000 | 74.82 | 52.39 |
| INV000004 | 1.000 | 114.41 | 80.11 |
Amt To Apply(CAD) values for the invoice are converted into Amt to Apply(Domestic) using the Payment Exchange Rate. Domestic Payment Applied on the header is calculated by totaling the Amt To Apply (Domestic) column. No additional currency conversion is required to calculate Payment Applied. Any residual amount is eliminated.