Overview

The Customer Balances view keeps a running tab of receivable amounts from customers. Customer sales transactions, recorded cash receipts and payment applications update the customer balance table automatically.

Prerequisites

Required Prerequisites

Customer Setup

Financial Account Setup

Checkbook Setup

Optional Prerequisites

Preference: Default Cash Receipt Checkbook

Preference: Days back that applications can be unapplied

Step 1: Viewing customer balances.

Expand the Sales Order module on the navigation menu and select Customer Balances. This will open the Customer Balances list view. By default, the balances are displayed as they are today and any vendors that have zero balances are hidden. The inquiry criteria can be changed by clicking the Inquiry Criteria toolbar icon.

The customer balances are displayed with the following details:

• Customer: Displays the name of the customer.
• History: Displays a “View” hyperlink, which opens a Customer History Inquiry.
• Net Balance: Displays the current net balance including unposted transactions.
• Open Transactions: Displays the total dollar amount of transactions that have not been posted yet (status New or Approved).
• Posted Balance: Displays the current balance of all posted transactions.
• Unapplied Credits/Returns: Displays the total dollar amount of credits and returns given for the customer, which have not been applied towards receivables yet.
• Unapplied Receipts: Displays the total dollar amount of cash receipts that have not been applied towards receivables yet.
• Unpaid Invoices: Displays the total dollar amount of receivables that don’t have payment applications.

Posted Balance, Unpaid Invoices and Net Balance amounts are displayed positive, when the customer has unpaid invoices.

Step 2: Recording customer payments.

To record a payment received from a customer, click the “Cash Receipt” toolbar icon on the Customer Balances page.

Note: A new cash receipt can also be created from the “Cash Receipts” list view. To access the list view, expand Customer Balances from the side navigation menu and then click Cash Receipt. Then select New from the toolbar.

A new cash receipt record opens with the following header fields:

• Account Type: This field defaults to “Customer” and is not editable.
• Amount: Enter the amount of the received payment. The amount must be entered before “Received From” is selected. The amount is editable when the transaction status is New.
• Checkbook: Select the bank to which the cash receipt applies. This field defaults to the checkbook selected in the “Default Cash Receipt Checkbook” Sales Order Preference, but is editable.
• Date: Enter the date of the cash receipt. This also serves as the GL date. The field defaults to the current date, but is editable. The date field is required.
• Description: Enter an additional note or comment regarding the cash receipt. This field is not required and it defaults to blank.
• Received From: Select the customer the payment is received from. Enter the “Amount” before selecting the customer. This field defaults to blank and it is required. The customer cannot be changed once selected. If an incorrect customer was selected, delete the cash receipt record and create a new one.
• Reference #: Enter a reference number to be associated with the payment. This field defaults to blank and it is not required.
• Remaining: This field identifies the remaining amount of the received payment that can be applied towards receivables transactions. This field auto updates and it is for informational use only and therefore it cannot be edited.
• Status: Select the status of the cash receipt transaction (New, Approved / Ready to Post). The status defaults to New and it is editable when the status is New or Approved.
• Type: Select the type of the payment that was received (Check, Card or Cash).

When the customer has been selected in the header section of the cash receipt record, the grid section populates with receivables transactions that have not been fully applied. The cash receipt record can be saved as Approved / Ready to Post without saving any applications.

Step 3: Applying received payments.

The received cash receipt can be applied towards one or more receivables transactions on the cash receipt record when the cash receipt record is being created or on the Apply Documents page.

Applying cash receipt on cash receipt record

Once the customer has been selected from the “Received From” field on a cash receipt record, the grid section populates with posted customer receivable transactions that have unapplied amount. The grid section displays the following details:

• Applied Amount: This field allows users to enter the amount that is applied from the Cash Receipt. One cash receipt can be applied towards multiple receivable transactions. The total Applied Amount cannot be greater than the Cash Receipt Amount. The Remaining field in the header section auto-updates accordingly when the Applied Amount is entered.
• Avail. Terms Discount Amt.: Displays the Available Terms Discount amount that is available to be used when applications are saved. This is calculated by subtracting any previously applied and saved discount amounts from the Original Terms Discount amount.
• Description: Displays the Description assigned to the receivable transaction.
• Discount Date: Displays the last day of the discount period.
• Doc No: Displays the Document Number assigned to the  the receivable transaction.
• Due Date: Displays the Due Date of the receivable transaction. The due date is pulled from the properties of the receivable transaction.
• Orig. Terms Discount Amt.: Displays the Original Terms Discount Amount of the receivable transaction. The value is calculated from the payment terms and is 0.00 if the payment terms assigned to the receivable transaction don’t have a discount period.
• Original Amount: Displays the Original Amount of the receivable transaction.
• Remaining Amount: This field displays the Remaining Amount of the receivable transaction after deducting the Terms Discount Taken amount. This field is for informational use only and it auto updates when an amount is entered to the Terms Discount Taken field.
• Terms Discount Taken: This field allows users to enter the discount amount that is used. This field is never required.
• Trans Date: Displays the Transaction Date of the receivable transaction.
• Transaction: Displays the Transaction ID of the receivable transaction.
• Unapplied Amount: Displays the Unapplied amount of the receivable transaction. This is calculated by deducting Applied Amount from the Remaining Amount. This field auto updates when the Applied Amount is entered.

To post the Cash Receipt transaction with applications, enter the Applied Amount (and the Terms Discount Taken), change the transaction status to Ready to Post and click Save from the toolbar. This updates the Customer Balances accordingly. If the Cash Receipt was not fully applied on the Cash Receipt record, it is displayed on the Apply Documents list view with the remaining unapplied amount.

Applying Cash Receipts and Credits on Apply Documents page

Credit transactions and also recorded cash receipts can be applied on Apply Documents page. To access this page, expand the Sales Order module, select Customer Balances and click Apply Documents. This opens the Apply Documents list view, which displays all received payments and credit transactions that have not been fully applied towards receivable transactions. Select the payment to be applied and click the “Apply Document” toolbar icon. This opens the Apply Sales Document page, where the application can be entered and saved. The header section of the page displays the following information:

• Account: This field displays the name of the customer assigned to the payment. This drop-down menu allows users to toggle between customers. The menu only displays customers who have unapplied payments/credits.
• Open Amount: Displays the total amount of the payment. This field is for informational use only and cannot be edited.
• Transaction: Displays the transaction ID of the payment/credit transaction. The drop-down menu displays all unapplied payment transactions assigned to the customer selected in the Account menu.
• Unapplied: Displays the unapplied amount of the payment/credit transaction. This field updates automatically when an Applied Amount has been entered in the grid section of the page. This field is for informational use only and cannot be edited.

The grid section displays unapplied and partially applied receivables assigned to the customer with the following details:

• Applied Amount: This field allows users to enter the amount that is being applied from the payment transaction selected in the header section towards the receivable transaction(s). One transaction can be applied towards multiple receivable transactions. The total Applied Amount cannot be greater than the Open Amount in the header section. Once the Unapplied in the header section is 0, the whole amount of the payment/credit has been applied.
• Apply Date: This field allows users to enter the application date. The date must reside within an open fiscal period.
• Discount Date: This field displays the last date of the discount period according to the payment terms. The date displays the Doc Date if the receivable transaction has no discount period. This field is for informational use only and cannot be edited.
• Doc Date: Displays the Document Date of the receivable transaction.
• Doc Description: Displays the Description of the receivable transaction.
• Doc No: Display the Document Number of the receivable transaction.
• Due Date: Displays the Due Date of the receivable transaction. The due date is pulled from the properties of the receivable transaction.
• GL Date: Displays the GL Date of the receivable transaction.
• GL Period: Displays the GL Period of the receivable transaction.
• GL Year: Displays the GL Year of the receivable transaction.
• JE: Displays the Journal Entry ID. This is a hyperlink, which opens the corresponding journal entry record. The journal entry is only created when Terms Discount Taken amount is entered and the application is saved.
• Orig. Terms Discount Amt.: Displays the Original Terms Discount Amount as calculated from the payment terms. The field displays 0.00, if the transaction does not have a discount term.
• Original Amount: Displays the original full receivable amount.
• Payment Terms: Displays the payment terms of the payable transaction.
• PO: Displays the purchase order ID of the payable transaction.
• Remaining Amount: Displays the remaining amount after ‘Terms Discount Taken’ and any previous applications.
• Terms Discount Taken: This field allows users to enter the discount amount that is taken.
• Transaction: Displays the Transaction ID of the receivable transaction.
• Unapplied Amount: Displays the unapplied amount of the receivable transaction. This is calculated by subtracting ‘Terms Discount Taken’ and any previous applications from the ‘Original Amount’.

To apply a cash receipt or a credit transaction towards a receivable transaction, enter the Applied Amount (and Terms Discount Taken amount) and change the Apply Date, if the application date should be other than today's date. Click Save from the toolbar to save the application. After a cash receipt / credit transaction has been fully applied towards receivable transactions, it is removed from the Apply Documents list view and from the Transactions menu after the Apply Documents list view is refreshed.

Unapplying received payments

Applications can be unapplied from the transaction records. The Sales Order Preference 'Days back that applications can be unapplied' determines how long back the applications can be unapplied. This feature allows users to unapply one or more transactions simultaneously from a transaction. To view and/or unapply CR type cash receipts or credit transactions, open the receivable transaction record from Purchasing > Reports & Inquiries > Sales. Select “View Applications” from the header toolbar. This opens an “AR Application Inquiry”, which displays all the cash receipts and credit transactions that have been applied towards the receivable transaction. The transactions are displayed with the following information:

• Applied Amount: This field displays the amount that was applied from the cash receipt / credit transaction towards the receivable transaction.
• Applied Date: This field identifies the date of the application.
• Applied Transaction Amount: This field displays the total amount of the cash receipt /credit transaction.
• Applied Transaction Date: This field displays the transaction date of the cash receipt / credit transaction.
• Applied Transaction Type: This field identifies the type of the transaction that was applied towards the receivable transaction.
• Applied Transaction: This field displays the ID of the transaction that was applied. This field is a hyperlink, which opens the corresponding transaction record.
• Discount Taken: This field identifies a discount amount that was applied towards the receivable transaction.

All the fields in the grid section are for informational use only and cannot be edited. To unapply one or more transactions, select the transaction(s) from the grid section and click Unapply from the toolbar. Unapplying transactions updates the Customer Balances accordingly and the unapplied cash receipts / credit transactions are displayed in the Apply Documents list view, where users can re-apply the transactions.

Note: TR type cash receipts cannot be unapplied. The system automatically creates a TR type cash receipt when payments are recorded (card, cash or check) on the sales transaction record.

See also Voiding AR Transactions.