How to Use Unapplied Cash

How to Use Unapplied Cash in Cash Entry



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.



Use the Cash Entry screen to take the unapplied cash and apply it to individual cash entry invoices.



To use unapplied cash, follow these steps.






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.


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.


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.


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 displays.


Cash Entry Detail screen showing the Correct Item question:






In the Invoice Number field, enter the date-coded invoice number you entered for the unapplied cash entry (e.g., 20060201), 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.


The Correct Item question displays. Your options are entering Y to proceed, N to re-enter the invoice number, or S to select an invoice from the Search screen.

Enter Y to proceed.

When you enter Y, the cursor moves to the Amount to Apply field.


Cash Entry Detail screen showing the Unapplied Cash being applied to open invoices:






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

The program fills in the Amount to Apply field, as well as the Control totals at the top of the screen.  The A/R App and the Balances field show the amount that can now be applied to the correct invoice number(s).

The cursor goes to the Inv/GL field on the next line.


In the Inv/GL field, enter I for invoice.

The cursor goes to the Invoice No field.


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 displays.


In the Amount to Apply field on the second line, press ENTER to accept the amount or 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. If there are more invoices to be entered, enter them the same way.  When you get to the last one, the net effect of the transaction should be zero; the A/R Balances field should 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.


Update the information on the screen.

When you update the screen, the program will return to the Cash Entry screen.