How to: Apply Customer Ledger Entries
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 one or more open debit or credit entries. You can specify the exact amount you want to apply. For example, you may only want to apply part of the payment and thereby only partly apply customer ledger entries. It is important at some stage to close (apply) all customer ledger entries in order to obtain correct customer statistics and printouts of the account statements and finance charges.
You can apply customer ledger entries in various ways within the following three methods:
By entering information in a journal.
From a credit memo or return order.
When customer ledger entries are already posted but not applied.
To apply a payment to a single customer ledger entry
In the Search box, enter Cash Receipt Journal and choose the related link. Alternatively, you can use the Sales Journals.
On the first journal line, enter the relevant information about the entry to be applied.
Enter Payment in the Document Type field.
Enter Customer in the Account Type field.
Enter Bank Account in the Bal. Account Type field.
In the Applies-to Doc. No. field, choose the field to open the Apply Customer Entries window.
In the Apply Customer Entries window, select the entry to apply the payment to.
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.
Choose the OK button to close the Apply Customer Entries window. 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.
Post the cash receipt journal.
To apply a payment to multiple customer ledger entries
In the Search box, enter Cash Receipt Journal, and choose the related link. Alternatively, you can use the Sales Journals.
On the first journal line, enter the relevant information about the entry to be applied.
Enter Payment in the Document Type field.
Enter Customer in the Account Type field.
Enter Bank Account in the Bal. Account Type field.
In the Amount field, enter the full payment as a negative amount.
To apply the payment to multiple customer ledger entries when posting, on the Actions tab, in the Functions group, choose Apply Entries.
Select the lines with the entries that you want the applying entry to be applied to.
On the Navigate tab, in the Application group, choose Set Applies-to ID.
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 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.
Click OK to close the Apply Customer Entries window.
Post the cash receipt journal.
To apply a credit memo to a single customer ledger entry
In the Search box, enter Sales Credit Memos, and choose the related link.
Open the relevant sales credit memo.
To apply the credit memo to a single customer ledger entry when posting, on the Application FastTab, in the Applies-to Doc. No. field, select the entry to which you want to apply the payment.
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.
Click OK to close the Apply Customer Entries window. 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.
Post the credit memo.
To apply a credit memo to multiple customer ledger entries
In the Search box, enter Sales Credit Memos, and choose the related link.
Open the relevant sales credit memo.
To apply the credit memo to multiple customer ledger entries when posting, on the Actions tab, in the Functions group, choose Apply Entries.
Select the lines with the entries that you want the applying entry to be applied to.
On the Navigate tab, in the Application group, choose Set Applies-to ID.
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 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.
Click OK to close the Apply Customer Entries window. The Sales Credit Memo window now shows the amount of the credit memo to be posted, adjusted for any possible payment discounts.
Post the credit memo.
To apply posted customer ledger entries
In the Search box, enter Customers, and choose the related link.
Open the customer card for the customer with entries you want to apply.
On the Navigate tab, in the History group, choose Ledger Entries. Select the line with the entry that will be the applying entry.
On the Actions tab, in the Functions group, choose Apply Entries. In the Apply Customer Entries window, you can see the open entries for the customer.
Select the lines with the entries that you want the applying entry to be applied to. On the Navigate tab, in the Application group, choose Set Applies-to ID. Three asterisks (***), or if you work in a multi-user system, your user ID, are entered in the Applies-to ID field.
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 program automatically applies the maximum amount. You can see the specific amount in the Applied Amount field at the bottom of the Apply Customer Entries window.
On the Home tab, in the Process group, choose Post Application. 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.
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.
To see the ledger entries, in the Search box, enter Customers, and 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 check mark in the Open field is cleared.
Note
After you have selected an entry from 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.
See Also
Tasks
How to: Allow for Application of Customer Ledger Entries in Different Currencies
How to: Allow for Rounding Differences When You Apply Entries in Different Currencies
How to: Set Up General Ledger Accounts for Invoice Rounding Differences
How to: View Applied Customer Ledger Entries from the Ledger Entry Window
How to: View Open Applied Customer Ledger Entries in the Customer Ledger Entries Window
How to: Apply Vendor Ledger Entries
How to: Unapply Applied Customer or Vendor Ledger Entries
How to: Process Cash Receipts