Apply Payments and Credits

This utility can be used to clean up any customer accounts where there are unapplied payments and/or credit invoices that should be applied to reduce the unpaid amounts left on outstanding invoices or finance charges.
It can be run at any time, but is especially useful to run at month end before the statements are generated.

Note: This action is not available when the Reward Dollar feature is activated.
Refer to Reward Program for information on this feature.

Prior to running this utility, complete the payment postings in Post Customer Payments, as any unposted payments are not included.

There are three types of credits that can be applied to unpaid invoice amounts, that are addressed by the Apply Payments and Credits utility in the following order:

1. All outstanding Credit invoices that end in a C regardless of the cut-off date of the run, are applied to any unpaid amount on a direct match invoice.
   e.g. A direct match invoice must have the same invoice number without the C suffix.
   Discounts are not given when an invoice is cleared by a credit invoice.

   The purpose of this apply action is to clear any matching invoices where a Credit invoice was automatically created with the C suffix to reverse an original invoice using, the Create Credit Invoice From Existing Invoice option.

2. The second pass of this program picks up any credit invoices regardless of the cut-off date of the run, and applies them to any unpaid amount on outstanding invoices with a Due Date that falls before the cut-off date.
   Invoices are paid in date due order.
   Discounts are not given when an invoice is cleared by a credit invoice.

3. The final pass of this utility applies any unapplied payment amounts against any unpaid invoices that are due before the cut-off date.
   Eligible discounts will be given, and if the payment date is outside the date range for ARCP, then the discount is posted as of the Cut-Off date selected for the run.
   Any payment amount not used, remains as an unapplied payment.

   Note: Negative payments are ignored.
   Invoices due after the cut-off date are ignored, unless they are a direct match.

In the cleanup process because an invoice cannot be paid directly by another invoice, an 'XAPPLY' zero dollar payment may be created as of the cut-off date to execute a cross apply of a credit invoice against a debit invoice.

Discounts are only given in the apply payments process if the payment on the invoice is made by a check within the eligible discount days.
Discounts are not respected when the invoice is paid by a credit invoice, either through a direct match or by an 'XAPPLY' payment.

If a customer has invoices, credits, and payments for multiple currencies, the invoices can only be paid by a payment or credit of the same currency.

The standard A/R batch codes are then used to post the payments in Post Customer Payments to the G/L.

The prompts to initiate the apply credit process include:

CUSTOMER OR "ALL"

Type ALL to include all customers, or enter a customer number, or select the customer from the Accounting Customer Search window.

If a Child customer is entered, a warning is generated and the customer number is converted to the corresponding Parent customer.
Payments and credits applied on a Parent account do not discern between different child invoices.

A warning is generated to alert the operator when unposted payments exist for the customer selection, but this does not prevent the program from being run.

CUSTOMERS TO EXCLUDE

Window to view and list any customers that should NOT be considered in this "cross-apply" process.
Customers listed in the window will be skipped.

A window is provided in the Account field to view the customer's account information.

DIVISION, "ALL" OR "SEL"

This division filter applies to the division assigned to the customer in Customer Information, not the invoice division.
If a single customer has been selected this value is ALL and cannot be changed.

If ALL customers are being included multiple customer divisions or a single division can be included in the apply process. Define the divisions as follows:

• Type ALL to include all divisions in the report.
  
• To print the report for a single division, leave this field blank for the Head Office Division, or enter a specific division code, or select a division from the drop-down list.
• Type SEL to select several specific divisions, or to a select customer region to include in the report, as outlined in Division Select By Region.

CUT-OFF DATE

Accept today's date or enter a preferred cut-off date.
Any standard unpaid invoices that have a Due Date before this date will be considered eligible in the apply process.

Cut-Off Date
The Cut-Off date does NOT apply to payment dates or to credit invoices, as all outstanding payment and credits will be applied if there are unpaid eligible invoices.
The Cut-Off date does NOT apply to direct match invoices, where a credit invoice was generated from Create Credit Invoice From Existing Invoice with the same invoice number suffixed with a C, as these will always be cross applied.

This Cut-Off date becomes the date of any 'XAPPLY' payments that the system creates.
This Cut-Off date also becomes the Discount date if the payment is outside of the date range, to minimize postings in a closed period. A separate G/L posting detail is printed on the posting journal generated from Post Customer Payments.

Date Warning
Date control on this Cut-Off date respects the date range set for ARCP in Date Range Control.

• If the operator has role permission to override the date control as set in Operators, and the date is out of range, a warning will be generated but it will not prevent him from proceeding.

• If the operator does not have permission to override the date control, and the date is out of range, a warning will be generated and he can only continue if an acceptable date is entered.

BATCH

Accept the batch code that is displayed that has defaulted from the last time this utility was run, or enter a batch code to complete the posting in Post Customer Payments, or select one from the drop-down list as setup in A/R Payments Batch Codes.

METHOD OF PAYMENT

Accept the payment method that is displayed that has defaulted from the last time this utility was run, or enter a payment method, or select one from the drop-down list.

The payment method is only used to facilitate posting when an "XAPPLY" payment is created to execute a cross apply of a credit invoice against a debit invoice.

Finished?

Click ACCEPT to initiate the cross apply payments and credits process, or CANCEL to abort.

Locked Screen:

If payments were being entered for a customer in Customer Payments while this program was being run, the Apply Payments and Credits program generates a warning to the operator and skips the customer.
Skipped customers are listed as outlined in Apply Payments and Credits - Locked with the ability to retry the Apply Payments and Credits process, or to abort.

Posting:

If the operator has been assigned a Security Role that has access to post A/R payments as defined in the Menu Security, then the Post Customer Payments screen is displayed with the Batch code and division defaulting from the Apply Payments and Credits program that was just completed.

Posting Control
This Apply Payments and Credits program is designed to be run by one operator at a time.
Locking will occur if another operator attempts to run the program at the same time, or if the first operator did not exit the posting program correctly.
A Posting Control Information warning will appear on the screen preventing the second operator from proceeding, and only operators with Security Role permission to reset the Apply Payments and Credits flag will have access to the RESET button that unlocks the program.
Whenever the posting control flag for Apply A/R Payments is reset, a record is written to the Delete Log for the Function ARCH07.