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How to Use Unapplied Cash

 

How to Use Unapplied Cash in Cash Entry

 

The Purpose

You can use unapplied cash when you determine to which invoice the unapplied amount should be applied. The unapplied amount (i.e., a prior payment in advance or monies left over from a previous cash entry) are already posted to the customer account and are waiting to be applied to a specific invoice.  They cannot purge from the system until they are applied to an open invoice.

 

Screen

Use the Cash Entry screen to use unapplied cash.

 

Procedure

To use unapplied cash, follow these steps.

 

Step

Action

Result

1

Enter 0 in the Control field, since there is no monies being received and deposited.

The Applied amount will also be zero. This transaction is an internal movement of funds from the unapplied cash “invoice” to the open invoice it should be applied to.

2

In the Posting Date field, enter the date of the original unapplied cash transaction.

 

 

Note:  If the date is outside the range of acceptable dates in the Accounting Dates Control maintenance, press Enter to use the system date.

3

Enter the Bill To customer code and then use the Check No, and Cust Bank fields for comments.

Note:  There is no actual check number or bank code involved in this transaction, since the actual cash was entered previously.

4

In the Amount Recvd and A/R Amount fields, enter a 0 value.

 

 

Note:  Because the A/R amount was recorded and posted when you made the original unapplied cash entry, no cash has been received and the A/R total is not affected by this transaction.

 

When the screen is complete, the Cash Entry Detail screen appears.

 

Screen

The Cash Entry Detail screen appears below.

 

 

Step

Action

Result

5

In the Invoice Number field, enter the date-coded invoice number you entered for the unapplied cash entry (e.g., 20010522), followed by the letter U in the Sf (suffix) field.

When you enter the date-coded invoice number, the unapplied cash entry amount appears as a negative amount (i.e., a credit balance) in the Balance Due field.

6

In the Amount to Apply field, press Enter to accept the full balance amount, as it appears in the Balance Due field.

The A/R App and the Balances field show the amount that can now be applied to the correct invoice number.

7

In the Invoice No field on the second line, enter the invoice number to which the cash is to be applied.

When you enter the invoice number, the balance due for that invoice appears.

8

In the Amount to Apply field on the second line, enter the positive amount to be applied against the balance due on the invoice.

This positive amount balances out the unapplied cash item you entered on the previous line. The net effect of the transaction should be zero; the A/R Balances field should also be zero.

Note: If the unapplied amount is less than the open invoice amount, the transaction will be treated as a partial payment.  If the unapplied amount is more than the open invoice amount, you will have to decide whether to write off the balance or leave it on account.

9

Update the information.

 

 

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