Adding Cash Applications

1. When you first enter the Cash Applications option, a Select A Checking Account window will appear and will display the checking accounts found in the system. Select the account to apply the payment to.

2. At the Customer field, enter in the six character customer ID code for this cash application.

If you are uncertain of the customer code, see Navigating Net Yield - Selecting a Customer ID Code.

3. At the Account Balance field, the specified customer’s account balance will display. A Select A Check window appears and allows you to: EXIT and return to the Customer field, ADD a new Cash Application for the specified customer, or see a listing of all payments received from this customer. Select Add.

Note: After selecting Add or an existing payment, if you press F6, the system will display a window so that you may view contact information, sales rep ID, addresses, phone numbers, and notes for the selected customer. Press Aging at the customer information window and the system will display the customer aging information.

4. At the Date Received field, enter in the date that you received the payment, or press Enter to accept the current system default date.

5. At the Check Number field, enter in the check number or payment reference number. If you do not make an entry in this field and press Enter, the message line displays “Invalid input!!! Press Space Bar”. Use "Cash" as the reference number to record cash payments you receive from your customer.

Note: A reference number can only be used once per day for the same customer. If you receive multiple payments with the same reference on one day, you will need to enter the total received for that reference number or make the check number unique for each application. If you received cash payments everyday from the same customer, no worry you can enter “cash" as the reference to record each payment received on different days.

6. At the Check Amount field, enter in the dollar amount that appears on the check you received. To apply offsetting entries that net to zero, enter 0.00 as the check amount.

7. At the Description field, enter an optional description or a note that will be associated with this cash application.

8. Select the method to be used to apply the cash. If you press F3, a Select An Application Method window appears and allows you to EXIT, automatically apply a check, apply and item individually, or manually apply the payment.

Automatically Applying cash

Select the AUTOMATIC method to apply payments to the oldest invoices first. The user can easily re-allocate if the payment was not applied to the correct open transactions by selecting allocate from the command options. The payment allocation screen will appear. Go to step 9.

Applying an Individual Item

If you select individual item, you will be prompted to enter the invoice number(s) that are being paid. The user can easily re-apply the dollar amount to each invoice entered. This only applies if the customer selected has more than 17 open transactions.

Enter the invoice number(s) to pay, leave the invoice number field blank, and press enter after you enter the last invoice number. The payment allocation screen will appear go to step 9.

Manually Applying Cash

The manual option opens the payment application window with the cash paid as 0.00 on each open item. The user then manually applies the amount paid to each invoice. The payment allocation screen will appear. Go to step 9.

Note: The default cash application method is specified in Receivables Options.

9. When all entry fields have been completed, the system will automatically change to the line item allocation page.

• Type – The transaction type
  • IN – Invoice
  • CR – Credit order
  • CM – Credit memo
  • DM – Debit memo
  • FC – Finance charge
• Ref – The reference number assigned to the transaction
• Cust PO – The purchase order number.
• Ship To – The ship-to ID code

Note: The Ship To field will only display if there is more than one page of open transactions.

• Invoiced – The date of the customer's transaction
• Date Due – The date the invoice is due for payment
• Invoice Amt – The amount due on the invoice
• Balance – The balance due on the invoice
• Adjust – The adjustment amount on the invoice
• Cash Paid – The cash applied to this transaction. The amount of each line cannot exceed the remaining balance on the line, and if the balance is negative, then the amount must be preceded with a minus sign.
• Discount – The discount applied to this invoice.

At the bottom of the screen

• Check Amount – The total amount of the check
• Balance – The total balance of the invoices selected for payment or the total open balance for the customer if less than one page of open invoice detail
• Adjust – Total adjustments taken
• Cash Paid – Total payments applied to open transactions. It cannot exceed total payment received
• Discount – Total discounts applied to open transactions

If the customer selected has open items exceeding one page, a window will display the open items. (This window will display the customer ship-to ID code to make it easier to facilitate cash applications on corporate accounts with multiple ship-to locations.)

Select the items to apply cash to by tagging the credit memos, debit memos, finance charge, credit orders, or invoices. If you press F9, the system will tag all the items. A net total tagged amount will show at the bottom of the screen. Press F10 when you have completed tagging items.

The payments will then be applied based on the application method selected.

10. The message line will display: Allocate, Next Page or Prior Page, Update, Add(X), Exit.

• If you select Allocate, the system will allow you to enter the payment amount to each open transaction in the Cash Paid field. Invoice, debit memo, and finance charge can be allocated up to the amount of the open item; credit orders and credit memos must be preceded by a minus sign in the same manner. Use the F5 key to allocate the entire balance on the transaction as the cash paid amount

Use the Adjustment column to create a credit memo by entering a negative amount in the adjustment column. If you enter an amount greater than the open balance for the transaction, the system will ask you if you want to create a debit memo for the amount over the open balance. If you answer yes, a debit memo will automatically be created for the difference and appear as a positive number in the adjustment column. If you answer no, you can re-enter the cash paid amount.

Credit invoices linked to the original invoices will tag and un-tag together.

If discounts are available, it is shown in the discount column of the line allocation screen. If you press Enter on a Cash Applied field when there is a discount available, the system will calculate the cash applied and discount, then place those amounts in the appropriate fields.

Note: Discounts can only be taken if: A) the customer’s terms warrant it; B) payment is made within the days allowed by those terms; C) if the full amount of the original invoice is taken; D) only on the first time cash is applied to that invoice.

• If you select Next Page, the system will move to the next page.
• If you select Prior Page, the system will move to the prior page.
• If you select Update, the system will allow you to update and keep the allocation. The system will not allow you to use this option if the payment allocation exceeds the total payment amount. A system warning will appear: “ Allocation exceeds total check amount !!! Space bar to continue.” Press the space bar and then select allocate to re-apply the payment. If the cash paid is less than the payment amount, the system will generate a warning, “ Leave balance unapplied cash? No/Yes”. Selecting yes will update the payment application and leave the balance as unapplied. It can be applied later. Selecting no will return you to the command options where you can select allocate and re-allocate the cash paid on each invoice. Any cash application that contains unapplied cash will display in the customer’s cash application list preceded by a @ sign and the amount left unapplied.

The user will be prompted to edit an existing description or add one if needed.

• If you select Add (X), the system will allow you to add on additional items by tagging the appropriate items through a window.

For more information on the Cash Applications option see Cash Applications.

Security Required : Receivables - Cash Receipts