You can use the A/R Payment Distributions form to apply or distribute payment amounts before posting them. The distributions determine how a payment is applied to a customer's account, and how it is distributed to the General Ledger (G/L).
CAUTION: The system posts only balanced transactions, one side to the cash account for the payment and the other to the accounts receivable (A/R) account for the distributions. Therefore, the applied amount for any transaction must equal the check amount of the payment. If these amounts are not equal, the system detects the error and cancels the posting.
You can create customer payment distributions automatically or manually.
To distribute payments automatically:
To review the distributions that were automatically generated, if you are using the A/R Payments form, you can click the Distributions button.
NOTE: Creating distributions automatically will use the G/L default account from the Accounts Receivable Parameters form.
To distribute payments manually:
| If the distribution type is: | Provide information for the following fields: | |
|---|---|---|
| Invoice | Invoice | Select the number of the customer's invoice to distribute the payment to. |
| Site | This field displays the site that owns the invoice to which the payment distribution is being applied displays, but you can select a different site to which to apply the payment. | |
| Dist Amount | Enter the distribution amount. | |
| Disc/Credit 1 | If the payment receipt date is less than the discount date of the invoice, this field displays the discount amount for the invoice, but you can change it to a different amount. | |
| Allowance/Credit 2 | Enter the allowance amount or the second credit distribution amount (in the customer's currency) given to the customer. | |
| Open Credit | Order | Select the customer order against which you are applying the distribution. |
| Site | This field displays the site that owns the invoice to which the payment distribution is being applied, but you can select a different site to which to apply the payment. | |
| Dist Amount | Enter the distribution amount. | |
| Disc/Credit 1 | If the payment receipt date is less than the discount date of the invoice, this field displays the discount amount for the invoice, but you can change it to a different amount. | |
| Allowance/Credit 2 | Enter the allowance amount or the second credit distribution amount (in the customer's currency) given to the customer. | |
| Finance Charge | Site | This field displays the site that owns the invoice to which the payment distribution is being applied, but you can select a different site to which to apply the payment. |
| Dist Amount | Enter the distribution amount. | |
| Non-A/R | Site | This field displays the site that owns the invoice to which the payment distribution is being applied, but you can select a different site to which to apply the payment. |
| Disc/Credit 1 | If the payment receipt date is less than the discount date of the invoice, this field displays the discount amount for the invoice, but you can change it to a different amount. | |
| Allowance/Credit 2 | Enter the allowance amount or the second credit distribution amount (in the customer's currency) given to the customer. | |
| If the distribution type is: | Provide information for the following fields: | |
|---|---|---|
| Invoice and you entered amounts in the Disc/Credit 1 and Allowance/ Credit 2 fields |
Disc/Credit 1 Acct | Select the G/L account number to post the discount/credit 1 amount to, or accept the default discount G/L account number that displays from the Accounts Receivable Parameters form. Then, if any of the Unit Code 1-4 fields are available, select the applicable unit codes. |
| Allowance/Credit 2 | Select the G/L account number to post the allowance or credit amount to, or accept the default G/L allowance account number that displays from the Accounts Receivable Parameters form. Then, if any of the Unit Code 1-4 fields are available, select the applicable unit codes. | |
| Tax Adjustment 1 | If Tax Discount/Allowance is selected on the Tax Systems form, enter this amount. | |
| Tax Adjustment 2 | If this field displays and if Tax Discount/Allowance is selected on the Tax Systems form, enter this amount. | |
| Open Credit | Disc/Credit 1 Acct | Select the G/L account number to post the discount/credit 1 amount to, or accept the default discount G/L account number that displays from the Accounts Receivable Parameters form. Then, if any of the Unit Code 1-4 fields are available, select the applicable unit codes. |
| Deposit Acct | Select the G/L account number to post the open credit (deposit) amount to, or accept the default deposit G/L account number that displays from the Accounts Receivable Parameters form. Then, if any of the Unit Code 1-4 fields are available, select the applicable unit codes. | |
| Tax Adjustment 1 | If Tax Discount/Allowance is selected on the Tax Systems form, enter this amount. | |
| Tax Adjustment 2 | If the field displays and if Tax Discount/Allowance is selected on the Tax Systems form, enter this amount. | |
| Non-A/R and you entered amounts in the Disc/Credit 1 and Allowance/ Credit 2 fields |
Disc/Credit 1 Acct | Select the G/L account number to post the discount/credit 1 amount to, or accept the default discount G/L account number that displays from the Accounts Receivable Parameters form. Then, if any of the Unit Code 1-4 fields are available, select the applicable unit codes. |
| Allowance/Credit 2 Acct | Select the G/L account number to post the allowance or credit amount to, or accept the default G/L Allowance account number that displays from the Accounts Receivable Parameters form. Then, if any of the Unit Code 1-4 fields are available, select the applicable unit codes. | |
| Tax Adjustment 1 | If Tax Discount/Allowance is selected on the Tax Systems form, enter this amount. | |
| Tax Adjustment 2 | If this field displays and if Tax Discount/Allowance is selected on the Tax Systems form, enter this amount. | |