Examples: Using A/R Quick Payment Application

Use these examples to understand the A/R Quick Payment Application.

Scenario 1

You enter a payment for $150, and select three $50 invoices in the grid against which to apply the payment.

The grid shows:

Customer Type Inv Site Order Delivery Order Chk/ Ref Inv Date Due Date Amt to apply Disc
1 I 101 01 C00001 5/15 6/15 50.00 0.00
1 I 150 01 C00007 6/15 7/15 50.00 0.00
1 I 156 01 C000010 6/22 7/22 60.00 0.00

When you select Apply, the system creates three distribution records for each one of these invoices.

Scenario 2

You enter a payment, and do not select any transactions in the grid.

You enter a payment for $100 on the A/R Quick Payment Application form with a payment date of 06/15/02, and save it. Then, you select Apply. A payment distribution is created as an Open credit for $100.

The grid shows:

Customer Type Inv Site Order Delivery Order Chk/ Ref Inv Date Due Date Amt to apply Disc
1 P Open 01 6/15 6/15 50.00 0.00

Scenario 3

You enter a payment, select an invoice, and some payment amount is left to be applied.

You enter a payment for $100 on the A/R Quick Payment Application form, and save it. Then you select an invoice for $60, and click Apply. Two payment distributions are created, one as an invoice for $60, and the other as an open credit for $40. Both the invoice and the open credit display as selected in the grid.

Customer Type Inv Site Order Delivery Order Chk/ Ref Inv Date Due Date Amt to apply Disc
1 C Open 01 6/15 6/15 40.00 0.00
1 I 102 01 C00001 5/15 6/15 60.00 0.00

Scenario 4

You enter a payment for $0, and select an invoice and an open credit.

Customer Type Invoice Site Order Delivery Order Chk/Ref Invoice Date Due Date Amt To Apply Discount
1 C Open 01 C000001     06/15/15 06/15/15 50.00 0.00
1 I 101 01 C000001     05/15/15 06/15/15 50.00 0.00

The open credit is automatically when you click Apply. The invoice number in the A/R Transaction table (artran) now shows 101. The A/R account in the original artran record for the open credit is 11000. The A/R account in the parameters is 11000. The journal entries created will be:

Journal Seq Date/Account Description Acount Amount Ref/Currency Exchange Rate
29 *   06/15/15 11000 50.00 ARPR 1
  Accounts Receivable   50.00 USD 1.000
30 * 06/15/15 11000 50.00 ARPR 1
  Accounts Receivable   50.00 USD 1.000

Scenario 5

You enter a payment for $50, and select multiple invoices, open payments, and credits: two invoices, 101 with a due date of 06/15/02 and 150 with a due date of 07/15/02 for $50 each; and the open credit has a due date of 06/15/02. The payment is for $50 on 07/20/02.

When you click Apply, the open credit of $50 is applied to invoice 101 and then posted. A/R Posted Transactions will show the credit with an invoice number of 101. The new payment of $50 is applied to invoice 150, and a payment distribution is created.

The grid shows the following:

Customer Type Inv Site Order Delivery Order Chk/ Ref Inv Date Due Date Amt to apply Disc
1 I 150 01 C000007 6/15 7/15 50.00 0.00

Scenario 6

You enter a payment, and select a Finance Charge transaction.

Three finance charges exist in posted transactions: one for $20 with a due date of 05/15/02, one for $20 with a due date of 06/15/02, and one for $20 with a due date of 07/15/02.

You enter a payment for $40. The finance charges display in the grid as follows:

Customer Type Inv Site Order Delivery Order Chk/ Ref Inv Date Due Date Amt to apply Disc
1 F Fin chg 01 5/15 5/15 50.00 0.00

You must update the Amt To Apply (in the grid) to $40.00. When you click Apply, a distribution is created for the finance charge. Upon posting the payment, the amount will automatically be applied to the oldest finance charges.

Scenario 7

Reapplication of an Open payment/Open credit.

You enter an open payment/open credit to reapply for $1000. The grid shows an invoice selected for $1000. When you click Apply, a payment distribution is created. The A/R account in the original A/R transaction (artran) record for the open credit is 11000, and the A/R account in the original record for the open payment is 26000 (Deposit account). The open credit journal entries are the same as in scenario #4 above. When the open payment is applied, payment application occurs within the due date, so a discount for $50 is automatically created by the system in the Discount column.

When the payments are posted, the open payment entries are:

Journal Seq Date/Account Description Account Amount Ref/Currency Customer/Exchange Rate
55 * 01/18/15 26000 1,000.00 ARPR 656
  AR Deposit   1,000.00 USD 1.000
56 * 01/18/15 40450 50.00 ARPR 656
  Sales Discount   50.00 USD 1.000
57 * 01/18/15 11000 1,050.00 ARPR 656
  Accounts Receivable   1,050.00 USD 1.000

Scenario 8

Reapply an Open payment to an invoice from another site.

An invoice is selected from Site 2. The open payment was entered in Site 1, and is being applied in Site 1. When you click Apply, you are prompted to transfer cash. If you select Yes, journal entries in Site 2 will transfer the amount from Accounts Receivable to cash. In Site 1, the amount will be transferred from the deposit account to cash. The entries appear:

Site 2:

Journal Seq Date/Account Description Account Amount Ref/Currency Customer/Exchange Rate
32 *   01/17/15 11000 100.00 ARPR 25
  Accounts Receivable   100.00 USD 1.000
33 *   01/17/15 10000 100.00 ARPR 25
  Cash   100.00 USD 1.000

Site 1:

Journal Seq Date/Account Description Account Amount Ref/Currency Customer/Exchange Rate
43 * 01/17/15 26000 100.00 ARPR 25
  AR Deposit   100.00 USD 1.000
44 * 01/17/15 10000 100.00 ARPR 25
  Cash   100.00 USD 1.000

If transfer cash is not selected, the A/R Inter-Site Liability and Asset accounts will be used instead of Cash. The entries are:

Site 2:

Journal Seq Date/Account Description Account Amount Ref/Currency Customer/Exchange Rate
35 * 01/17/15 11000 100.00 ARPR 23
  Accounts Receivable   100.00 USD 1.000
36 * 01/17/15 49020 100.00 ARPR 23
  A/R Inter-Site Asset   100.00 USD 1.000

Site 1

Journal Seq Date/Account Description Account Amount Ref/Currency Customer/Exchange Rate
47 * 01/17/15 26000 100.00 ARPR 23
  AR Deposit   100.00 USD 1.000
48 * 01/17/15 49000 100.00 ARPR 23
  A/R Inter-Site Liability   100.00 USD 1.000

Scenario 9

Reapply an open payment to an invoice with a different exchange rate. An open payment for $310 Canadian Dollars (CND) at an exchange rate of 1.55 is applied to an invoice with an exchange rate of 1.60. The following entries happen in the journal when the Apply button is selected:

Journal Seq Date/Account Description Account Amount Ref/Currency Customer/Exchange Rate
66 * 01/14/15 26000 200.00 ARPR 5651
  AR Deposit   310.00 US$ 1.550
67 * 3000 40200 7.03 ARX  
  Currency Gains   10.90 CND 1.550
68 * 01/14/15 11000 7.03 ARX  
  Accounts Receivable   10.90 CND 1.550
69 * 01/14/15 11000 200.00 ARPR 5651
  Accounts Receivable   310.00 CND 1.550

Scenario 10

You enter a payment for $95. You also enter a non-A/R cash distribution for $5.00 in A/R Payment Distributions. When you access the A/R Quick Payment Application form, the following transactions display:

Customer Type Inv Site Order Delivery Order Chk/ Ref Inv Date Due Date Amt to apply Disc
1 F Fin chg 01 C000007 -1 5/15 5 100.00 0.00
Non A/R Non A/R 01 5/15 5.00
Open credit Open 01 -1 5/15 20.00 0.00
1 I 100 01 5/15 6/15 10.00 0.00

When you click Apply, the $20 open credit is applied to the finance charge. It is automatically posted and shows on the A/R Posted Transactions form.

The $95.00 payment is then applied. Distributions for an $80 finance charge, $5.00 non-A/R cash, and $10.00 invoice will then be created. The non-A/R cash already exists in the distributions.

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