Processing Conditions

For a one-to-one match to occur, the difference between the payment amount and the invoice amount must be within the variance amount you define in the Variance field on AR130. If the difference between the payment and invoice amounts is less than or equal to the variance, automatic application occurs. The variance applies to one-to-one matching only.

Because the program compares transaction amounts during the algorithm method, variances are applicable and adjustment records can be created along with an applied record. The system creates an adjustment record for the over or short adjustment amount.

If no one-to-one match exists, the program combines up to five oldest invoices to see whether the sum equals the payment amount. The maximum combination of invoices cannot exceed the maximum number of invoices you define on AR130. The variance is not applicable during invoice combination. Combined invoices must match the payment amount exactly; therefore, no adjustment records are created.