Sales invoice recognition by payment assignment

The functionality of Sales invoice recognition by payment assignment works only for payments in local currency and allows, when importing a bank statement into the Bank Payments Journal, to recognize sales orders or invoices issued to customers based on the assignment of the payment specified in the bank statement and automatically apply them to payments.

The functionality works according to the following logic:

1. The system recognizes the agreement in the bank payment journal lines. Next, the system determines the condition for automatic application specified in the agreement. Depending on the condition, payments are recognized and applied.
2. The system reads the assignment of the payment, finds the sales invoice or order, and applies the Bank Payment Journal line to the sales invoice/order found. If several different invoices are specified in the payment assignment, the system will apply the payment to all recognized sales invoices. If the payment amount is less than the amount of the found sales invoices, then the application will occur in the order of the invoices listed in the payment assignment.
3. If at the first step the system does not find the agreement, then the search starts by the sales invoice/order number in the assignment of payment, and the agreement number is filled in the line of the bank payments journal by the first found invoice/order. This is followed by the process described in clause 2.

Note
If the payment assignment does not include a sales invoice or order number, the automatic application function will not produce any result.

Required setup

For the functionality to work, you need to set up customer contracts. To do it:

1. Click to open Search, enter Customers, follow the link.
2. Select a customer and open their card.
3. Click Navigate > Agreements to open the list of customer agreements. Select the required agreement.
4. In the General FastTab, in the Automatic Application Rule field, select the following settings:
   • Identified Document – means that payments will be applied to invoices recognized by the system in the assignment of payment;
   • Apply to Oldest – means that payments will be applied to invoices that will be recognized by the system in the assignment of payment, and in case of an unapplied balance, the balance amount will be distributed according to the FIFO method to sales invoices/orders under a specific customer agreement;
   • Agreement only – means that payments will not be automatically applied to invoices.

Automatic application

1. Click to open Search, enter Bank Payment Journal, follow the link.
2. Import the bank statement lines to the journal or create a customer’s payment line manually.

Important
If the payment line was created manually, it is necessary to set the Imported value in the Payment Order Status field.

3. Select the lines for which automatic application must be performed and click Process Automatic Application.
4. The system will recognize customer sales invoice or order numbers and perform application to them. The Applies-to ID field will be filled in with the corresponding application code.

See Also

Bank Payment Journal
Create a Customer or Vendor Agreement
Create Payment Order