Entering and applying cash

You will need to enter and apply payments to open items for a customer or for all customers within a national account. There are four forms that you can enter and apply payments with, and one form that is only used to apply payments. This table describes the forms.

Note: If you have interfaced payments without remittance records, then you can apply the cash using the AR30 forms. Optionally, you can use AR130 using the balance forward, last statement, or algorithm methods.

See Using Automatic Application.

Entry and Application Use this form to enter payments and view all the prepayments or transactions available for cash application. Use this form to enter and apply payments by company and customer.
Contract Activity Application

(For AC/BR users) Use this form to enter payments and apply cash against open transactions that are associated with a (AC) contract activity or activity group, or a Billing and Revenue Management (BR) contract.

See Entering and applying cash for activity-based transactions.
Entry and Speed Application Use this form to enter payments and view all the transactions available for cash application, but with less transaction detail.
On Account Application Typically this form is used if the cash was entered and released previously by another person.
Line Item Application Use this form to enter and apply cash to individual line items. These must be valid line items created in Line Item Entry (AR42.8) or interfaced from an external source.

Two different application procedures are available.

  1. The procedure Cash Application Using Select Records allows you to select open items for application and then process them on line or through a batch program. This allows you to review your applications for errors before they are processed. AR30.1 and AR34.1 create select records.

  2. The second procedure Cash Application Using Applied Records processes applications as soon as they are selected. Any applications are instantly reflected in the customer's balance. AR33.1 creates applied records.

Note: Before you can enter cash, a batch must be defined first.

Entering and applying cash using entry and application

  1. Access Entry and Application (AR30.1) if you want to review your applications before processing them.
  2. Specify the payment number that identifies the cash, such as the check number or wire transfer number. Select the company, specify a batch number, payment amount, payment type, customer, and post date (for AR payments).

    If prepayment records exist, then you will be able to click a Prepayment link to view AR21.6. If you want to sort open items by attributes, then select the attribute desired in the Custom Sort field. See Using Attribute Matrix attributes.

    Note: Selected items have an asterisk (*) in the S Selected column.
  3. To apply cash, select the Add line action next to the obligations that you want applied. Consider these tasks:
    Adjustments

    To create an adjustment, such as a discount or shortage, select an adjustment reason code from the Rsn field, then specify the adjustment amount in the Adj Amount field.

    Note: Specify positive amounts for discounts and shortages. Specify negative amounts for overage adjustments.
    Apply Credit Memos

    Select the Add line action next to the credit, then specify the amount that you want to apply. The amount of the credit is added to the payment amount.

    Write Off Payments

    Click W Write-off to access the Payment Write-off (AR30.3) subform. Write off the payment. You can define general ledger account information for the write-off.

    Create a Chargeback

    Click Memo to access the Chargeback Memo (AR34.3) subform. Use the subform to create and maintain memo chargebacks. You can define general ledger account information for the chargeback.

    See Creating chargebacks and return to makers.

    Create a Non-AR Payment

    Click Non-AR to access Cash Non-AR (AR21.3). Use the form to enter cash not associated with an Accounts Receivable customer. The total distribution amount must equal the payment amount before you can release the payment.

    Multiple Currency

    You can apply cash to transactions that are in non-base currency. The transactions will display in the currency of the payment. See What Is Multiple Currency Application? and Options for entering and applying cash: Multiple Currency applications.

  4. (Optional) Click Filter to open Selection Criteria (AR33.2). Define open item selection parameters. All open items that meet the criteria will be selected for application.
  5. (Optional) Click * More to open Adjustments (AR34.2). Maintain the application adjustments. You can define general ledger account information for the adjustment.
    Note: The Speed Entry subform will not allow you to apply cash to items that were selected in AR30.1.
  6. (Optional) Click Speed to open Speed Entry (AR30.2). Speed entry allows quick entry of remittance records. Specify a transaction number, the amount that you want to apply, and any adjustments.
  7. To unselect records, consider these options:
    Unselect all applications associated with a payment

    Select the Unselect form action.

    Unselect individual applications associated with a payment

    Select the Delete line action next to the selected open item and process it using form action Change. Once you have made the corrections, you can process the applications.

  8. These steps create selected records that are not applied until you select the Process form action. Or you can run Automatic Application (AR130) to process the records.
    Note: If you select Apply to Oldest First in the Apply To Oldest field, then do not specify any other parameters.
  9. (Optional) Select "R" Range to open Range Application (AR33.8) subform to apply a payment to a range of obligations. Define range parameters. The system will apply the payments based on the parameters. When entering a range, the records will automatically be applied. This means that the records will be removed from the open items listed at the bottom of AR30.1, and you will not be able to review them for errors.
  10. (Optional) Select User to open Payment User Fields (AR21.9).
  11. Specify user-defined data in the fields. The information entered here is for reference only. The value of the field is defined on Company (AR01.1).
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