Add Payments

Adding a new payment

Auto Apply

1) Auto apply would be used when a customer uses a "balance-forward" method, where they pay an amount (based on their statement), and the amount is applied against invoices, starting with the oldest invoice that has any balance due, until the payment is exhausted. This is what most customers will use for most labs.

2) Auto apply would not be used when a customer pays on a "per invoice" basis (also sometimes called open-item).  In this case, the customer will indicate (on the statement or cheque stub) which specific invoices they are paying, and will require the lab to allocate the payment against those specific invoices. 

NOTE: The default setting for auto apply can be changed from the Customer A/R screen, (click here for instruction)

To illustrate how the payments work, consider a sample customer with 4 invoices outstanding - 2 in January 2017, and 2 in February 2017, as follows:
Invoice 805665 shipped 01/14/2017 for $76.00
Invoice 874555 shipped 01/31/2017 for $28.00
Invoice 875102 shipped 02/17/2017 for $53.00
Invoice 888100 shipped 02/25/2017 for $40.00

These transactions will show in the A/R Transactions window as:

The customer is configured to receive a 10% discount on their Rx pricing if they pay by the 10th of the month following the statement.  So, in the examples above, invoices 805665 and 874555 would receive a 10% discount if payment on them is made on or before 10 February 2017.  Invoices 875102 and 888100 would receive the 10% discount if they are paid before 10 March 2017.

On the January statement for this customer, the first two invoices will show, with the discount they are eligible for if paid before 10 Feb, as follows:

The customer is set up to automatically apply payments; assuming that the customer sends in a payment for $93.60 on 8 February, when the payment is entered, Rx-Universe will automatically apply the payment against the oldest invoices, and since the payment date is earlier than the discount date, will automatically take the applicable discounts on the invoices; the screen would look similar to the following:

The individual entries for discounts and payments can be modified, if desired.  The "Remaining" box shows how much of the payment remains to be applied.

Taking the same scenario as above, but with the customer configured NOT to automatically apply payments,let's assume the customer sends in a cheque for $123.70, with instructions to pay invoices 805665 and 875102.  Perhaps there is a dispute about the charge for 874555, and that invoice is omitted from the payment instructions. 

When the $123.70 payment is entered, nothing is automatically applied, and the "Remaining" field shows the amount of the payment remaining to be allocated.  The lab can go to the "disc taken" column of the first invoice, and press enter - since the payment date is beyond the discount date for that invoice, no discount is applied (the lab can over-ride this if desired by entering in a discount amount).  Tabbing to the payment entry for that invoice, and pressing enter, will default the payment to the full amount of the invoice:

Let's skip invoice 874555, since it wasn't listed on the cheque stub, and go to 875102, which was listed.  When we press enter on the discount taken column, the eligible discount will show, since the payment has come in before the discount date for this particular invoice.  The payment will default to the balance owing for the invoice (which is also the balance left on the payment, since the customer paid the invoices in full):

When the statement is run for this customer for February, it will show the invoices that were fully paid, and will show eligible discount only for the invoice in February not yet paid.  No eligible discount would be shown for invoice 874555, because the payment wasn't made before the discount date (10 Feb 2017):