Accounts Receivable > Open Credits

The Apply Payment function handles the posting of open credits. Prepayments, overpayment and deposits from your customers constitute the open credits that are addressed here.

Prepayments and overpayments recorded using the Apply Payment function will be posted to the Customer Deposits Liability GL Account ID that you provided in the GL Account Selection function.

To post an open credit, perform the following steps:

1.Access the Apply Payment function from the Payment group in the Transactions menu of the Accounts Receivable module.

2.In the Customer # field, enter the number of the customer for whom you want to record the open credit. Alternatively, you may click the Lookup button to display all customer records with active status; then, click a customer number to select.

3.In the Payment Details page, accept or enter values in the following fields:

oReceipt Date

Enter in this field the date when this transaction will be recorded as received. The default date in this field is the current system date. You may enter another receipt date in this field as long as it is not restricted for posting. You may click the Fiscal Period Table Lookup button to display the Posting Period Restrictions function screen which shows the periods that have been restricted for posting.

oPay Code

Enter in this field the pay code that represents the method of payment for the amount that you are going to apply as open credit to the customer. You may click the List box button to display a list of available pay codes pre-defined in the system. The List box only shows pay codes with Debit/Credit Card, Cash, Check, Other, and ACH pay types. Click the applicable pay code from the list to select. You cannot continue to process the transaction unless you enter a valid pay code in this field.

oBank #

Enter in this field the bank into which the payment received will be deposited. The default value in this field is the bank account number used in the last receipt transaction entered in this function. You may click the List box button to select the appropriate bank account number.

oPaid Amount

Enter in this field the amount you received from the customer as payment for the outstanding invoice(s). You must enter in this field the full amount received from the customer.

If the payment is made using credit card, enter in the field the net amount received (equivalent to the invoice amount less the finance/service charge usually deducted by credit card companies.) To illustrate, if the customer pays $400 using his American Express card to settle his outstanding invoice and the credit card company withholds 2% of the total amount, the actual amount received is only $392. You must enter in this field a value of $392 and record the remaining amount of $8 as a discount or to another appropriate account. If you want to record this amount as an adjustment, click the Adjustment field in the grid and indicate the amount.

oPay Currency Exchange Rate

This field is enabled only if the customer is using a foreign currency code. The field displays the exchange rate that you have assigned to the currency code of the foreign customer entered in the Customer # field. You may update the value in this field; however, this new exchange rate will only apply to the current receipt transaction. The change that you make in this field will not affect the exchange rate in the Currency Exchange Maintenance function.

oBank Amount

Enter in this field the amount that will be credited to the bank wherein the payment received will be deposited. If the payment transactions are in a foreign currency amount, the converted amount is shown in this field.

oBank Currency Exchange Rate

This field is enabled if the bank entered in the Bank # field is a foreign bank which has a currency code different from the customer's. The field displays the exchange rate that you have assigned to the currency code of the foreign bank you entered in the Bank # field. You may update the value in this field; however, this new exchange rate will only apply to the current receipt transaction. The change that you make in this field will not affect the exchange rate in the Currency Exchange Maintenance function.

oCheck #/Credit Card #

This field is enabled only if the pay code entered in the Pay Code field has a check or credit card pay type. Enter in this field the check number if the payment is by check, or the credit card number if it is paid by credit card. If the customer pays his account by credit card, you may click the List box button to display the customer's credit card information saved in the system. To select, click the credit card number that you want to use for this receipt transaction. The customer’s credit card records are set up in the Customer Maintenance function.

Note: You can view the complete credit card number provided that you are granted the access right; otherwise, only the last four digits will be shown and the rest of the credit card number will be encrypted.

oReference

Enter in this field reference information for this transaction such as the payer's name (if it is different from the customer); the bank account on which the check was written; the company that issued the credit card, cashier’s check or travelers check or any other pertinent information.

4.When you are done entering the required information in the Payment Details page, click the Save button in the function toolbar. A pop-up message appears asking for confirmation that you want the unapplied payment to generate an open credit. Click the Yes button to confirm; otherwise, select No. Once you click the Yes button, the save confirmation message appears informing you that the payment has been posted and shows the system-generated receipt number.

5.When you have successfully saved the transaction, you can choose to perform any of the following options from the save confirmation message window:

oPreview

Click the Preview button if you want to view the receipt before you print it.

oPrint

Click the Print button if you want to print the Payment Receipt.

oDeposit

Click this button to access the Record Bank Deposit function directly from this window in order to record bank deposits.

oNew

Click the New button to post another customer open credit transaction.

oClose

This is the X button in the upper right corner of the save confirmation window. Click this button to close the save window.

Note: The Preview, Print and Deposit buttons are enabled only if the user has the necessary access rights to these function. To manage user access rights, use the Groups access rights function in the System Administrator module.

6.If you applied payments to several invoices for a customer or several customers without exiting this function, you may click the enabled Payment Summary page where you can view the receipts entered in this function in the current work session.

Post an Open Credit

Post an Open Credit

See Also