This explains how to allocate customer payments to one or several customer invoices or other types of payment records in accounts receivable.
The allocation can be performed in two ways:
Customer payments are allocated, completely or partially, and – if necessary – adjusted. See the respective process/instruction for information on lists printed.
Invoices allocated to checks or drafts are recorded as paid and separate draft and check records are created with remittance status 10 in the accounts receivable file. They are also displayed in 'Customer Draft. Display' (ARS280) and 'Customer Check. Display' (ARS430) respectively.
If you selected reconciliation numbers when allocating payments manually or if the invoices were connected to a reconciliation number, the total outstanding amount for the respective number is updated directly in 'AR Reconciliation Number. Open' (ARS245).
Analyze the customer debt and credit situation based on the allocated payments.
If payments were allocated to invoices with a reconciliation number, follow up the payment status for each number on a regular basis. You do this online in (ARS245) or in 'Accounts Receivable. Display Additional Information' (ARS250). You can also print lists in 'AR Reconciliation Number. Print' (ARS545) for this purpose.
The general ledger and accounts receivable are updated. The following account entries are created:
*Account entry based on the original customer invoice.
For information on transactions created for adjusting payments during allocation, see Adjusting Customer Payments.
Payments by Draft and Definite Postdated Check
When draft payments or payments by postdated checks of type 2 are allocated to invoice, they are automatically recorded under the following information category numbers and displayed in 'Accounts Receivable. Display Additional Information' (ARS250):
After allocation, value type 40 = 'Payment document received not remitted' in 'Accounts Receivable. Display Balances' (ARS225) is also updated.
Allocate Recorded Customer Payments to Invoice
You can allocate customer payments to invoice records in one of the following ways:
If the customer also is a supplier and is identified as such in Supplier. Define Purchase & Financial (CRS624/E), past due invoice records in accounts receivable are included when creating a payment proposal for the supplier in 'Supplier Payment Proposal. Open' (APS130).
Such invoice records are listed in (ARS110) but blocked from further processing until the payment proposal is confirmed.
Adjust for Customer Payment Differences
Make any adjustments necessary for managing and writing off any type of payment differences during the allocation in (ARS110).