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How to: Reconcile Customer Payments Manually
In this articleWhen you receive a cash receipt from a customer, or you make a cash refund, you must decide whether to apply the payment or refund to close one or more open debit or credit entries. You can specify the amount you want to apply. For example, you can apply partial payments to customer ledger entries. Closing customer ledger entries makes sure that information such as customer statistics, account statements, and finance charges are correct. Note In the Customer Ledger Entries window, red font means that the related payment is past its due date. You can apply customer ledger entries in several ways:
Note If the Application Method field on the customer card contains Apply to Oldest, payments are applied to the oldest open credit entry, unless you manually specify an entry. If the application method is Manual, you always apply entries manually. You can apply customer payments manually in the Cash Receipt Journal window. A cash receipt journal is a type of general journal, so you can use it to post transactions to general ledger, bank, customer, vendor, and fixed assets accounts. You can apply the payment to one or more debit entries when you post the payment, or you can apply from the posted entries later. You can also apply customer and vendor payments in the Payment Reconciliation Journal window, by using functions for bank statement import, automatic application, and bank account reconciliation. For more information, see Reconcile Payments Using Automatic Application. Alternatively, you can reconcile customer payments based on a list of unpaid sales documents in the Payment Registration window. For more information, see How to: Reconcile Customer Payments From a List of Unpaid Sales Documents To fill and post a cash receipt journal
To apply a payment to a single customer ledger entry
To apply a payment to multiple customer ledger entries
To apply a credit memo to a single customer ledger entry
To apply a credit memo to multiple customer ledger entries
To apply posted customer ledger entries
On the ledger entry list, on the line that contains the ledger entry that was fully applied to, you can see that the Open check box is not selected. Note After you select an entry in the Apply Customer Entries window, or several entries by setting the Applies-to ID, the Applied Amount field on the journal line will contain the sum of the remaining amounts for the posted entries you have selected, unless the field contains something already. If you select Apply to Oldest in the Application Method field on the customer card, the application occurs automatically. To apply customer ledger entries in different currencies to one anotherIf you sell to a customer in one currency and receive payment in another currency, you can still apply the invoice to the payment. If you apply an entry (Entry 1) in one currency to an entry (Entry 2) in a different currency, the posting date on Entry 1 is used to find the relevant exchange rate to convert amounts on Entry 2. The relevant exchange rate is found in the Currency Exchange Rates window. Applying customer ledger entries in different currencies must be enabled. For more information, see How to: Enable Application of Ledger Entries in Different Currencies.
Important When you apply entries in different currencies, the entries are converted to USD. Although the exchange rates for the two currencies are fixed, for example between USD and EUR, there may be a small residual amount when they are converted to USD. These small residual amounts are posted as gains and losses to the account specified in the Realized Gains Account or Realized Losses Account fields in the Currencies window. The Amount (USD) field is also adjusted on the vendor ledger entries. To correct an application of customer entriesWhen you correct an application, correcting entries that are identical to the original entry but with opposite sign in the amount field are created and posted for all entries, including all general ledger posting derived from the application, such as payment discount and currency gains/losses. The entries that were closed by the application are reopened.
Important If an entry has been applied by more than one application entry, you must unapply the latest application entry first. See AlsoDynamics 365 Business Central When a note is received from a customer on account it is recorded?When a note is received from a customer on account, it is recorded by debiting Accounts Receivable and crediting Notes Receivable. note receivable. The discounting of a note receivable creates a contingent liability that continues in effect until the due date of the note.
What is the journal entry to collect from a customer on account?Accounts receivable are amounts owed to a business by customers for credit sales invoiced to them on account. When a customer pays an invoice, an account receivable collection journal entry is required to clear the amount on their account.
How do I record receipt of notes on account?How do I record a note receivable in my accounting records? To record a note receivable, you will need to debit the cash account and credit the notes receivable account.
What is the proper journal entry to record a payment from a customer for accounts receivable?You use the invoice to add a journal entry as a debit in the accounts receivable account and a credit in the sales account. Once the customer has paid the invoice, you can list a debit in the sales account and a credit in the accounts receivable account.
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