Examples: Using 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 the these entries:


Customer	Type	Invoice	Site	Order	Invoice Date	Due Date	Amt To Apply
1	I	101	01	C000001	5/15/2016	6/15/2016	50.00
1	I	150	01	C000007	6/15/2016	7/15/2016	50.00
1	I	156	01	C000010	6/22/2016	7/22/2016	50.00

When you select Apply, three distribution records are created 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 6/15/2016, and save it. Then, you select Apply. A payment distribution is created as an Open credit for $100.

The grid shows these entries:


Customer	Type	Invoice	Site	Order	Delivery Order	Chk/Ref	Invoice Date	Due Date	Amt To Apply	Discount
1	P	Open	01				6/15/2016	6/15/2016	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 select 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	Invoice	Site	Order	Delivery Order	Chk/Ref	Invoice Date	Due Date	Amt To Apply	Discount
1	C	Open	01				6/15/2016	6/15/2016	40.00	0.00
1	I	102	01	C000001			5/15/2016	6/15/2016	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			6/15/2016	6/15/2016	50.00	0.00
1	I	101	01	C000001			5/15/2016	6/15/2016	50.00	0.00

The open credit is automatically when you select 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. These journal entries are created:



29 * 6/15/2016 11000		50.00	ARPR	1
	Accounts Receivable	50.00	USD	1.000
30 * 6/15/2016 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 6/15/2016 and 150 with a due date of 7/15/2016 for $50 each; and the open credit has a due date of 6/15/2016. The payment is for $50 on 7/20/2016.

When you select Apply, the open credit of $50 is applied to invoice 101 and then posted. A/R Posted Transactions 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 these entries:


Customer	Type	Invoice	Site	Order	Delivery Order	Chk/Ref	Invoice Date	Due Date	Amt To Apply	Discount
1	I	150	01	C000007			6/15/2016	7/15/2016	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 5/15/2016, one for $20 with a due date of 6/15/2016, and one for $20 with a due date of 7/15/2016.

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


Customer	Type	Invoice	Site	Order	Delivery Order	Chk/Ref	Invoice Date	Due Date	Amt To Apply	Discount
1	F	Fin chg	01				05/15/02	05/15/02	60.00	0.00

You must update the Amt To Apply (in the grid) to $40.00. When you select Apply, a distribution is created for the finance charge. Upon posting the payment, the amount is automatically 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 select 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:


Sequence	(Trans) Date	Account Description	Account	Amount (Foreign)	Amount (Domestic)	Reference	Currency Code	Exchange Rate
55	1/18/2016	AR Deposit	26000	1,000.00	1,000.00	APPR 656	USD	1.000
56	1/18/2016	Sales Discount	40450	50.00	50.00	APPR 656	USD	1.000
57	1/18/2016	Accounts Receivable	11000	1,050.00	1,050.00	ARPR 656	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 select Apply, you are prompted to transfer cash. If you select Yes, journal entries in Site 2 transfer the amount from Accounts Receivable to cash. In Site 1, the amount is transferred from the deposit account to cash. These entries are displayed:


Site 2
32 * 1/17/2016 11000	3000		100.00 ARPR	25
	Accounts Receivable		100.00 USD	1.000
33 * 1/17/2016 10000		100.00	ARPR	25
	Cash	100.00	USD	1.000


Site 1
43 * 1/17/2016 26000		100.00	ARPR	25
	AR Deposit	100.00	USD	1.000
44 * 1/17/2016 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 are used instead of Cash. The entries are:


Site 2
35 * 1/17/2016 11000	3000		100.00 ARPR	23
	Accounts Receivable		100.00 USD	1.000
36 * 1/17/2016 49020	49020	100.00	ARPR	23
	A/R Inter-Site Asset	100.00	USD	1.000


Site 1
47 * 1/17/2016 26000		100.00	ARPR	23
	AR Deposit	100.00	USD	1.000
48 * 1/17/2016 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. These entries happen in the journal when the Apply button is selected:


66 * 1/14/2016 26000		200.00	ARPR	5651
	AR Deposit	310.00	US$	1.550
67 * 1/14/2016 40200	3000		7.03 ARX
	Currency Gains		10.90 CND	1.550
68 * 1/14/2016 11000		7.03	ARX
	Accounts Receivable	10.90	CND	1.550
69 * 1/14/2016 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, these transactions display:


Customer	Type	Invoice	Site	Chk/Ref	Invoice Date	Due Date	Amt To Apply	Discount
1	F	Fin chg	01	-1	5/15/2016	5/15/2016	100.00	0.00
	Non A/R	Non A/R	01		5/15/2016			5.00
	Open Credit	Open	01	-1	5/15/2016		20.00	0.00
1	I	100	01		5/15/2016	6/15/2016	10.00	0.00

When you select 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 are then created. The non-A/R cash already exists in the distributions.