Entering, applying, and releasing cash

When you enter a payment, you must select the open items that the payment will apply to. There are several forms that you can use to enter and apply payments.

A recommended form for Grant Management users is Contract Activity Application (AR32.1). Use this form to enter and apply cash to open items that are associated with a contract, contract activity or activity group. You can also review your applications for errors before you process them.

Note: You can also use Entry and Application (AR30.1), On Account Application (AR33.1), or Line Item Application (AR34.1), but Contract Activity Application (AR32.1) provides the easiest method to apply a payment against open items associated with a contract, contract activity, or activity group, since only activity-based open items appear on this form. See the Accounts Receivable User Guide.

If you use multiple currencies, or need more information about entering, applying, and releasing cash, then see Accounts Receivable User Guide.

You must release the batch that are associated with payments to update the customer balances and make the payments available for posting. You cannot adjust the payments after releasing them.

Note: Before you can enter cash, ensure that a cash batch is defined for the contract company on Cash Batch (AR20.1).

Use this procedure to enter and apply cash using activity-based entry and application.

Access Contract Activity Application (AR32.1).
Define the payment header. Use these guidelines to specify the field values:

Contract

To define a payment for a contract, specify or select the contract name.

Note: If you select the contract name, then the system will derive the activity, activity group, company, and customer when you add the payment header.

Actvy (Activity)

If you do not know the contract name, then select the contract or posting activity.

Note: If you select the contract or posting activity, then the system will derive the contract, activity group, company, and customer when you add the payment header.

Actvy Grp (Activity Group)

If you selected the activity group alone, then you must also select the company and customer information.

Company

Specify or select the AR company that the payment will be credited. If you selected a contract or contract activity, then the system will derive the company when you add the payment header.

If no contract or activity is selected, then you must select the company and customer information.

Batch

Specify the batch that the payment belongs to. It must be a valid batch for the company, as defined on Cash Batch (AR20.1).

Payment

Specify the payment reference number as it appears on the remittance.

Amount

Specify the payment amount as it appears on the remittance.

Customer

Specify or select the AR customer that the payment will be credited. If you selected a contract or contract activity, then the system will derive the company and customer information when you add the payment header.

If no contract or activity is entered, then you must select the company and customer information.

Trans Dsp

Select the Transaction Display (Trans Dsp) values, which determine which open items are displayed, or you can let the values default from the value assigned to Trans Display on Customer Group (AR00.1).

If the Trans Display value is not selected (blank) on AR00.1, then the display will default from the contract, activity, or activity group that you select on AR32.1.

If you do not select the contract, activity, or activity group, then Contract (C) is the default transaction display.

Post Date

Specify the General Ledger posting date associated for the cash application(s).

If the company has Payment/Credit Date selected in the Application Post Date field on Company (AR01.1), then the general ledger date defined for the cash batch defaults.

If the company has System Date selected in the Application Post Date field on Company (AR01.1), then the current system date is set as default.
Select the Add form action to create the payment record. The open items that meet the header criteria should display. If not, then you must select the Inquire form action to display the open items.
Select open items for application in one of these two ways:
- Select any individual open item by selecting the Add line action next to the open item, then select Change form action to select all the items you flagged.
- Click Filter to access Selection Criteria (AR32.2). Define open item selection parameters. All open items that meet the criteria will be selected for application.
You can apply cash to transactions that are in non-base currency. The transactions will display in the currency of the payment.

Note: Selected items have an asterisk (*) in the P (partially selected or Sel (Selected) column.
Unselect any open items that you selected in error.
- To unselect all applications associated with a payment, select the Unselect form action.
- To unselect individual applications associated with a payment, select the Delete line action for the application and the Change form action.
Define any adjustments, chargebacks or write-offs for the payments. Use these tasks guideline:

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 Amt field. Save by using the Change line action and Change form action.

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 Write-off to access the Payment Write-off (AR30.3) subform. Write off the payment by specifying or selecting a reason code, adjustment amount and description. You may use more than one reason code or override the defaulting GL account, activity, or user analysis values by clicking More to access Adjustment GL Accounts (AR30.4).

Create a Chargeback

Click Memo to access Chargeback Memo (AR30.7) . Use this subform to create and maintain memo chargebacks.
To apply the payment to the selected records, select the Process form action

Note: Another way to perform this task is by running Automatic Cash Application Audit (AR130) to process the records.
When all the payments for a batch are entered and applied on AR32.1, release the batch by selecting the Release form action.

Note: You can no longer make changes to any of the payments associated with the batch after the batch is released.

Handling multiple currency applications

You can apply cash to transactions that are in non-base currency. The transactions will display in the currency of the payment. Multiple currency application allows you to process transactions when company base, transaction, and payment currencies are all different.

Contract Activity Application (AR32.1) displays all open items for the contract, activity group, or customer you have selected. This is how the open item currency amounts display:

Open items that have the same currency as the payment, display in payment currency.
Open items that have a different currency from the payment, display in payment currency when a currency relationship is defined between the payment and transaction.
Open items that have a different currency from the payment, display in transaction currency when a currency relationship is not defined between the payment and transaction.

Note: You cannot apply the payment to the open item or select the item for automatic application on Automatic Cash Application Audit (AR130) if the currency relationship or rate does not exist. You will receive an error message indicating that a currency relationship does not exist. Contract Activity Application (AR32.1) allows all items to be retrieved but the currency edit prevents an incomplete currency application from occurring.

If you want to display only those open items that have a specific currency, then use the Selection Criteria filter to limit the display of open items to that currency. Click Filter to access the Selection Criteria subform. Select the Extended Transaction tab to specify or select a currency code. These items will also be selected for application.