Automatic Cash Application Audit (AR130)

Use Automatic Cash Application Audit (AR130) to automatically apply payments and, in certain cases, credit memos to open items for customers that have Yes selected in the Automatic Application Method Apply field, and a method selected in the Application Method field in Customer (AR10.1).

This form has two tabs; Selection and Algorithm. Access the Selection tab to define application selection parameters. Access the Algorithm tab to define parameters used in the algorithm method of cash application.

Automatic application occurs in three ways: transaction match, transaction applied, and the algorithm method. Transaction match uses a remittance advice to match a payment to an associated open item. Transaction applied has two types of processing: balance forward (oldest payments applied to oldest open items) and last statement (oldest payments applied to open items on the customer's last statement). The algorithm method applies a payment to a single open item of the same amount (including a user-defined variance) or to a user-defined combination of open items (variance not applicable).