Receivables Application Rule Sets

Application Rule sets determine the steps Receivables uses to apply partial payments to your customers open debit items and how discounts affect the open balance for each type of associated charges. Transactions usually consist of line items, tax, freight and finance charges or a a combination of these. Depending on business needs, you can reduce each associated charge proportionately, close the outstanding tax amount first, or apply a payment to the line and tax amounts and use any remaining portion to reduce the freight and finance charges.

Application Rule sets let you specify how receivables reduces the balance of your open debit items when yhou:
Apply a receipt to an invoice or debit memo.
Run post quick cash.

You can assign a rule set to each of your transaction types and enter a default rule set in the System Option window. Receivable uses the following hierarchy to determine which application rule set to use,

Transaction Type
System Options

Receivables application rule sets always appy payments and discounts to the gross line amount (the net line amount plus any associated tax amount).

Application Rule Sets
Receivable provides the following predefined Applicaiton Rule Sets. You can view these rule sets and create your own rule sets in the Application Rule sets window.

Line First Tax After
This rule set first applies the payment to the open line amount, and then applies the remaining amount the associated tax. If the payment is greater than the sum of line and tax, Receivables attempts to close each open item by applying the remaining amount in the following order, stopping when the payment has been fully applied:
1. Freight 2. Finance Charges

Line and Tax Prorate
This rule set applies a proportionate amount of the payment to the open line and tax amount for each line. If the payment is greater tahn the sum of the open line and tax amounts, receivable attempts to close each open item by applying the remaining amount in the following order, stopping when the payment has been fully applied.
Freight, Finance Charges.

Prorate All
This rule set applies a proportionate amount of the payment to each open amount associated with a debit item 9for example any line, tax, freight, and finance charge amounts for this item).
Receivables uses the following formula to determine the applied amount

Applied
Amount = open application line type amount/Sum of applicaiton line types in rule *receipt amount