In this first example a payment of $550.00 received from customer jones is entered. This payment is used to completely pay invoice I8301-003 and invoice I8302-004. It also partially pays invoice I8303-001. Fill in the top part of the screen as follows:
Press the STORE <F5> button and the lower half of the Customer Payment screen appears listing all the open invoices for customer jones.
The unapplied amount of $550.00 is shown in the lower left corner of the screen. This amount changes by the applied portion of the payment. The entire $550.00 must be applied before you can leave the screen or refresh the screen for further entries.
You apply the payment by specifying the number of the invoice. Notice that the first entry in the list of invoices is not an invoice but GL Account. Applying payments to a "GL Account" is covered in Example 3.
Also notice that some of the invoices display discount amounts. These discounts are automatically applied to the invoices when they are paid in full. If a payment is not timely (the system compares the date in the header with the discount date on the invoice), or an invoice does not qualify for a discount, no discount is displayed for the invoice. In this example start off by applying payment to item number 2, invoice number I8301-003. A 2 is entered in answer to the question:
Number of invoice to Pay=?
The RETURN key is pressed, invoice I8301-003 is paid, and the screen reappears as shown below.
The amount left, shown in the lower left corner of the screen, is 250.00. The full amount of $300.00 was applied to the invoice since the invoice did not qualify for a discount.
Next, apply the remaining amount left to invoice 8302-004 by entering a 2. The RETURN key is pressed and the screen displays:
Notice that this time the payment was timely and so the discount of 25.00 was applied. The remaining $25.00 is now applied to invoice 8303-001 by entering a 2 for the invoice to pay. After the RETURN key is pressed the screen is refreshed and ready for entry of another customer payment.
Effects of Example 1
1. The general ledger bank account 105 was debited for 550.00.
2. Invoice I8301-003 was credited for 300.00 and now has a balance of 0.00.
3. Invoice I8302-004 was credited for 250.00 and now has a balance of 0.00.
4. The discount account specified for invoice 8302-004 was debited for 25.00.
5. The invoice I8303-001 was credited for 25.00 and now has a balance of 75.00.
6. The customer account jones was credited for 550.00 Its previous balance was 1,100.00, its present balance is 550.00.
7. The general ledger controlling account for customer jones (accounts receivable) was credited for 550.00.
This example applies credit memo C8304-001 for customer tech to invoice I8303-003. Fill in the top part of the screen as shown.
Notice that a zero amount (0.00) is entered in the Amount field. Application of a credit memo is a two step process. First the credit memo is "paid" the same way an invoice is paid on this screen. Then the amount of the credit memo is applied to an invoice. After the top part of the screen is stored, the screen appears as below.
As you can see, the screen is completely filled with entries numbered 1through 8. Instead of displaying the check amount left and asking for the invoice to pay, the message at the bottom of the screen tells you there are more open invoices for this customer. At this point we can do one of two things. If we want to pay an invoice that is displayed, we would press Q for quit. The check amount left and number of invoice to pay messages would then appear on the screen. But we want to pay credit memo C8304-001 which is not displayed on this screen. So press the SPACE BAR and more invoices are displayed as shown below.
Entries numbered 9 through 16 are displayed, and the message at the bottom of the screen indicates that there are still more open invoices for this customer. The credit memo CB8304-001 is displayed here, so we do not need to look any further. Enter Q for quit.
Credit memo C8304-001 is entry number 13. The effect of "paying" the credit memo is to release the amount of the credit memo so that it can be applied to an invoice. In this example, after the credit memo is "paid" the check amount left is $100.00.
Enter 13 and press the RETURN key. The first invoice screen is displayed again.
Before you apply the $100.00, take a look at all the open invoices for this customer. Press the SPACE BAR and invoices 9 through 16 are displayed.
Notice that credit memo C8304-001 no longer appears on the screen: it has been "paid". Press the SPACE BAR again.
There are totals displayed for the Amount, Discount, and Total fields. The check amount left and number of invoice to pay messages are also displayed. This means that there are no more open invoices for this customer. The totals represent all the open invoices not just the invoices on the present screen. Notice also that the check amount left is $100.00, the amount of the "paid" credit memo.
At the beginning of this example we said that we wanted to apply the credit memo to invoice I8303-003. Invoice I8303-003 is not on this screen. To go back and redisplay the invoices from the beginning, press the RETURN key rather than entering the number of the invoice to pay. You can return to the beginning of the invoice list from any screen by first pressing Q for quit and then pressing the RETURN key instead of entering the number of the invoice to pay. Press the RETURN key and the first set of invoices is displayed.
The invoice I8303-003 is on this screen. Press the Q key to quit.
Enter 3 to apply the $100.00 to invoice I8303-003. After the RETURN key is pressed, the screen is refreshed and ready for the entry of another customer payment.
Effects of Example 2
1. The credit memo C8304-001 was debited for $100.00. The balance for credit memo C8304-001is now 0.00.
2. The invoice I8303-003 was credited for $100.00. The balance for invoice I8303-003 was previously 250.00. The balance is now 150.00.
3. The balance for customer tech is unchanged.
4. The balance of the controlling account (accounts receivable) for tech is unchanged.
5. The general ledger bank account 105 is unchanged.
In this last example enter a payment on 3/20/83 for customer bennett for $100.00 as shown below.
Notice that bennett has a balance of exactly $100.00.
Press the STORE <F5> button and the open invoices are displayed.
Customer bennett only has one open invoice, I8301-048. Enter a 2 to pay it, and then press the RETURN key.
The check amount left is 10.00 because the payment was timely and the discount was applied. Now we are left with 10.00 and no more invoices to pay. The 10.00 must be applied to a general ledger account. Enter a 1 to post the amount to a general ledger account.
The screen now asks us to specify a general ledger account. Any general ledger account can be entered. In this case you should to enter the general ledger account for customer overpayments.
If a customer has overpaid or prepaid his account, the extra amount is posted to an overpayment or prepayment general ledger account. In this case, after you have finished with the customer payment screen, you need to make a general journal entry to credit the customer's account and debit the overpayment or prepayment general ledger account.
For this example enter general ledger account 211, the customer overpayment general ledger account.
The screen then asks you to enter the amount you wish to post to the general ledger account. This allows you to post parts the of remaining amount to any number of general ledger accounts. For this example, post the total amount of 10.00 to general ledger account 211.
Press the RETURN key and the screen is refreshed and ready for entry of another customer payment.
Effects of Example 3
1. The general ledger bank account 105 was debited for 100.00.
2. Invoice I8301-012 was credited for 100.00 and now has a balance of 0.00.
3. The discount account specified for invoice I8301-012 was debited for 10.00.
4. The customer account bennett was credited for 100.00 and now has a balance of 0.00.
5. The general ledger controlling account (accounts receivable) for bennett was credited for 100.00.
6. The general ledger account 211, customer overpayments account was credited for 10.00.