Table of Contents

Reconcile Customer Payments Manually

When you receive a cash receipt from a customer, or you make a cash refund, you must decide whether to apply the payment or refund to close one or more open debit or credit entries. You can specify the amount you want to apply. For example, you can apply partial payments to customer ledger entries. Closing customer ledger entries makes sure that information such as customer statistics, account statements, and finance charges are correct.

In the Customer Ledger Entries window, red font means that the related payment is past its due date.

You can apply customer ledger entries in several ways:

• By entering information in dedicated windows, such as the Cash Receipt Journal and Payment Reconciliation Journal windows.
• From sales credit memo documents.
• From customer ledger entries after sales documents are posted but not applied.

If the Application Method field on the customer card contains Apply to Oldest, payments are applied to the oldest open credit entry, unless you manually specify an entry. If the application method is Manual, you always apply entries manually.

You can apply customer payments manually in the Cash Receipt Journal window. A cash receipt journal is a type of general journal, so you can use it to post transactions to general ledger, bank, customer, vendor, and fixed assets accounts. You can apply the payment to one or more debit entries when you post the payment, or you can apply from the posted entries later.

You can also apply customer and vendor payments in the Payment Reconciliation Journal window, by using functions for bank statement import, automatic application, and bank account reconciliation. For more information, see Reconcile Payments Using Automatic Application. Alternatively, you can reconcile customer payments based on a list of unpaid sales documents in the Payment Registration window. For more information, see Reconcile Customer Payments From a List of Unpaid Sales Documents

To fill and post a cash receipt journal

1. Choose the icon, enter Cash Receipt Journal, and then choose the related link.
2. Choose the Edit Journal action.
3. Select the relevant batch in the Batch Name field.
4. Fill in the Posting Date field.

5. In the Document Type field, select Payment.

   The Document No. field is filled by the number series assigned to the batch.

6. Use the External Document No. field to store an identifier, such as the customer’s cheque number.
7. In the Account Type field, select Customer.
8. In the Account No. field, select the relevant G/L account.
9. If you want to post the application at the same time as you post the journal, do one of the following.
10. In the Balancing Account Type field, select G/L Account for cash payments, and Bank Account for other payments.
11. In the Balancing Account No. field, select the cash account for cash payments, or the relevant bank account for other payments.
12. Post the journal.

To apply a payment to a single customer ledger entry

1. Choose the icon, enter Cash Receipt Journal and choose the related link.
2. Choose the Edit Journal action.
3. On the first journal line, enter the relevant information about the entry to be applied.
4. In the Document Type field, enter Payment.
5. In the Account Type field, enter Customer.
6. In the Bal. Account Type field, enter Bank Account.
7. In the Applies-to Doc. No. field, choose the field to open the Apply Customer Entries window.
8. In the Apply Customer Entries window, select the entry to apply the payment to.

9. In the Amount to Apply field, enter the amount you want to apply to the entry. If you do not enter an amount, the maximum amount is applied.

   At the bottom of the Apply Customer Entries window, you can see the specific amount in the Applied Amount field and also whether the application balances.

10. Choose the OK button. The Cash Receipt Journal window now shows the entry you have selected entered in the Applies-to Doc. Type and Applies-to Doc. No. fields.
11. Post the cash receipt journal.

To apply a payment to multiple customer ledger entries

1. Choose the icon, enter Cash Receipt Journal, and then choose the related link.
2. Choose the Edit Journal action.
3. On the first journal line, enter the relevant information about the entry to be applied.
4. In the Document Type field, enter Payment.
5. In the Account Type field, enter Customer.
6. In the Bal. Account Type field, enter Bank Account.
7. In the Amount field, enter the full payment as a negative amount.
8. To apply the payment to multiple customer ledger entries when posting, choose the Apply Entries action.
9. Select the lines with the entries that you want the applying entry to be applied to, and then choose the Set Applies-to ID action.

10. On each line, in the Amount to Apply field, enter the amount you want to apply to the individual entry. If you do not enter an amount, the maximum amount is applied.

    At the bottom of the Apply Customer Entries window, you can see the specific amount in the Applied Amount field and also whether the application balances.

11. Choose the OK button.
12. Post the cash receipt journal.

To apply a credit memo to a single customer ledger entry

1. Choose the icon, enter Sales Credit Memos, and then choose the related link.
2. Open the relevant sales credit memo.
3. To apply the credit memo to a single customer ledger entry when posting, in the Applies-to Doc. No. field, select the entry to which you want to apply the payment.

4. On the line in the Amount to Apply field, enter the amount you want to apply to the entry.

   If you do not enter an amount, the program automatically applies the maximum amount. At the bottom of the Apply Customer Entries window, you can see the specific amount in the Applied Amount field and also whether the application balances.

5. Choose the OK button. The Sales Credit Memo window now shows the entry you have selected entered in the Applies-to Doc. Type and Applies-to Doc. No. fields. And the amount of the credit memo to be posted, adjusted for any possible payment discounts.
6. Post the credit memo.

To apply a credit memo to multiple customer ledger entries

1. Choose the icon, enter Sales Credit Memos, and then choose the related link.
2. Open the relevant sales credit memo.
3. To apply the credit memo to multiple customer ledger entries when posting, choose the Apply Entries action.
4. Select the lines with the entries that you want the applying entry to be applied to, and then choose the Set Applies-to ID action.

5. On each line, in the Amount to Apply field, enter the amount you want to apply to the individual entry. If you do not enter an amount, the maximum amount is applied.

   At the bottom of the Apply Customer Entries window, you can see the specific amount in the Applied Amount field and also whether the application balances.

6. Choose the OK button. The Sales Credit Memo window now shows the amount of the credit memo to be posted, adjusted for any possible payment discounts.
7. Post the credit memo.

To apply posted customer ledger entries

1. Choose the icon, enter Customers, and then choose the related link.
2. Open the customer card for the customer with entries that you want to apply.
3. Choose the Ledger Entries action, and then select the line with the entry that will be the applying entry.
4. Choose the Apply Entries action. The Apply Customer Entries window opens showing the open entries for the customer.
5. Select the lines with the entries that you want the applying entry to be applied to, and then choose the Set Applies-to ID. action.

6. For each line in the Amount to Apply field, enter the amount you want to apply to the individual entry. If you do not enter an amount, the maximum amount is applied.

   At the bottom of the Apply Customer Entries window, you can see the specific amount in the Applied Amount field.

7. Choose the Post Application action. The Post Application window appears with the document number of the applying entry and the posting date of the entry with the most recent posting date.

8. Choose the OK button to post the application.

   If the posted application has resulted in closed customer ledger entries, the Open field is cleared for these ledger entries.

9. To see the ledger entries, choose the icon, enter Customers, and then choose the related link. Browse to the card for the relevant customer to see the ledger entries.

On the ledger entry list, on the line that contains the ledger entry that was fully applied to, you can see that the Open check box is not selected.

After you select an entry in the Apply Customer Entries window, or several entries by setting the Applies-to ID, the Applied Amount field on the journal line will contain the sum of the remaining amounts for the posted entries you have selected, unless the field contains something already. If you select Apply to Oldest in the Application Method field on the customer card, the application occurs automatically.

To correct an application of customer entries

When you correct an application, correcting entries that are identical to the original entry but with opposite sign in the amount field are created and posted for all entries, including all general ledger posting derived from the application, such as payment discount and currency gains/losses. The entries that were closed by the application are reopened.

1. Choose the icon, enter Customers, and then choose the related link.
2. Open the relevant customer card.
3. Choose the Ledger Entries action.
4. Select the relevant ledger entry, and then choose the Unapply Entries action.
5. Alternatively, choose the Detailed Ledger Entry action.
6. Select the application entry, and then choose the Unapply Entries action.
7. Fill in the fields in the header, and then choose the Unapply action.

If an entry has been applied by more than one application entry, you must unapply the latest application entry first.