How to: Set Up Rules for Automatic Application of Payments
In the Payment Application Rules window, you set up rules to govern how payments should be automatically applied to their related open entries when you use the Apply Automatically function in the Payment Reconciliation Journal window.
You set up new payment application rules by choosing which types of data on a payment reconciliation journal line must match with data on one or more open entries before the related payment is automatically applied to the open entries. The quality of each automatic application is shown as a value of Low to High in the Match Confidence field in the Payment Reconciliation Journal window according to the payment application rule that was used.
Each row in the Payment Application Rules window represents a payment application rule. Rules are applied in the order specified by the Sorting Order field. If multiple rules are used simultaneously, then the match confidence of the highest sorted rule is used.
The automatic application function is based on prioritized matching criteria. First the function tries, in prioritized order, to match text in the five Related-Party fields on a journal line with text in the bank account, name, or address of customers or vendors with unpaid documents representing open entries. Then, the function tries to match text in the Transaction Text and Additional Transaction Info fields on a journal line with text in the External Document No. and Document No. fields on open entries. Last, the function tries to match the amount in the Statement Amount field on a journal line with the amount on open entries.
Note
Text matching is only possible for text longer than four characters.
In addition to the matching criteria, the following applies concerning the sign of the payment amount:
For negative amounts, a match is made first against open entries representing customer invoices and then against vendor credit memos.
For positive amounts, a match is made first against open entries representing vendor invoices and then against customer credit memos.
For detailed information about the matching algorithm, see the Design Insight – Record Matching in Cash Management document on the Getting Ready site for Microsoft Dynamics NAV 2015 on PartnerSource (requires PartnerSource account).
To set up a payment application rule
In the Search box, enter Payment Application Rules, and then choose the related link.
Define a new or edited payment application rule by filling the fields on a line as described in the following table.
Field Description Match Confidence
Specifies your confidence in the application rule that you define on the line.
A value that you specify in this field is shown in the Match Confidence field in the Payment Reconciliation Journal window according to the quality of the automatic payment application on the journal line.
Priority
Specifies the priority of the application rule relative to other application rules that are defined as lines in the Payment Application Rules window. 1 represents the highest priority.
Related Party Matched
Specifies how much information about the customer or vendor, such as address, city name, and bank account number, on the payment reconciliation journal line must match with information about the open entry before the application rule will be used to automatically apply the payment to the open entry.
Doc. No./Ext. Doc. No. Matched
Specifies if text on the payment reconciliation journal line must match with the value in the Document No. field or the External Document No. field on the open entry before the application rule will be used to automatically apply the payment to the open entry.
Amount Incl. Tolerance Matched
Specifies how many entries for a customer or vendor must match the amount including payment tolerance before the application rule will be used to automatically apply a payment to the open entry.
The following table shows which payment application rules are set up in the generic version of Microsoft Dynamics NAV.
Important
The payment application rules may be different in your installation of Microsoft Dynamics NAV.
| Match Confidence | Priority | Related Party Matched | Doc. No./Ext. Doc. No. Matched | Amount Incl. Tolerance Matched |
|---|---|---|---|---|
High |
1 |
Fully |
Yes - Multiple |
One Match |
High |
2 |
Fully |
Yes - Multiple |
Multiple Matches |
High |
3 |
Fully |
Yes |
One Match |
High |
4 |
Fully |
Yes |
Multiple Matches |
High |
5 |
Partially |
Yes - Multiple |
One Match |
High |
6 |
Partially |
Yes - Multiple |
Multiple Matches |
High |
7 |
Partially |
Yes |
One Match |
High |
8 |
Fully |
No |
One Match |
High |
9 |
No |
Yes - Multiple |
One Match |
High |
10 |
No |
Yes - Multiple |
Multiple Matches |
Medium |
1 |
Fully |
Yes - Multiple |
Not Considered |
Medium |
2 |
Fully |
Yes |
Not Considered |
Medium |
3 |
Fully |
No |
Multiple Matches |
Medium |
4 |
Partially |
Yes - Multiple |
Not Considered |
Medium |
5 |
Partially |
Yes |
Not Considered |
Medium |
6 |
No |
Yes |
One Match |
Medium |
7 |
No |
Yes-Multiple |
Not Considered |
Medium |
8 |
Partially |
No |
One Match |
Medium |
9 |
No |
Yes |
Not Considered |
Low |
1 |
Fully |
No |
No Matches |
Low |
2 |
Partially |
No |
Multiple Matches |
Low |
3 |
Partially |
No |
No Matches |
Low |
4 |
No |
No |
One Match |
Low |
5 |
No |
No |
Multiple Matches |
See Also
Tasks
How to: Set Up Rules for Automatic Application of Payments
Other Resources
Payment Application Rules
Match Confidence
Priority
Related Party Matched
Doc. No./Ext. Doc. No. Matched
Amount Incl. Tolerance Matched
Payment Reconciliation Journal
How to: Map Payment Text to Accounts to Assist Automatic Application
How to: Automatically Apply Payments to Open Documents
How to: Review and Apply Payments after Automatic Application
How to: Import Bank Statements