Automatic cash application

Use Automatic Cash Application to automatically apply payments and credit memos to open items for customers that have selected the Automatic Cash Application field. Automatic cash application is selected in the Application Method field in Company Customer.

Automatic application occurs in these ways:

• Transaction match uses a remittance advice to match a payment to an associated open item.
• Transaction applied has these processing types:
  • Balance forward are the oldest payments that are applied to oldest open items.
  • Last statement are the oldest payments that are applied to open items on the customer's last statement.
  • Algorithm applies a payment to a single open item of the same amount, including a variance or to a combination of open items.