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Cash Applications

The Cash Applications option allows users to record cash received from customers and apply these payments against previously-entered invoices and receivable adjustments. Cash applications remove open items from accounts receivable (AR) equal to the amount of the cash received. Invoices, credit orders, credit memos, debit memos, and finance charges can be applied in whole or in part. The payment received can be left unapplied and applied to open transactions at a later date.

As part of applying a payment, you can enter a negative dollar amount in the adjustment column in order to account for shorting a payment on an invoice. This will automatically create a credit memo which will be applied to the invoice. You can also overpay an invoice. The system will then ask if you want to create a debit memo or a positive dollar entry in the adjustment column. The amounts to be adjusted may be defined in Receivables Options.

Cash applications are assigned to a deposit in Bank Deposits.

Available Actions

Using

Adding

Changing

Printing

Voiding

Cash Application Fields

Checking Account	The cash or checking account that the payment will be deposited into.
Customer	The customer code ID and name.
Account Balance	The amount currently owed by the customer.
Date Received	The date the customer's payment was received.
Check Number	The customer's check number or payment reference number. Cash payments received can be entered using "cash" as the reference number.
Check Amount	The amount of the customer's check.
Description	(Optional) Description for the payment received.
Application Method	(Only shows if you are adding a new cash application.) The method used for applying cash applications. Press F3 and a Select An Application Method window will appear, displaying the following choices: EXIT, Automatic, Individual Item, and Manual.

	Detail Screen

Type	The transaction type. IN=invoice, CR=credit invoice, CM=credit memo, DM=debit memo, FC=finance charge.
Ref	The transaction reference number.
Cust PO	The customer's purchase order number.
Invoiced	The invoice or transaction date.
Date Due	The payment due date (invoice+terms).
Invoice Amt	The original invoice or transaction amount
Balance	Open balance of the transaction (original transaction amount-previously applied payments)
Adjust	Adjustment amount to take (plus or minus) on this payment
Cash Paid	Amount of the payment applied to the transaction
Discount	If discounted terms exist, and a discount is due, the amount of the discount to apply to the invoice

Security Required : Receivables - Cash Receipts