Apply Payments

The last step in the accounts receivable process is to apply payments to invoices. This is the step that commits the transactions to history. You can apply partial amounts that we leave them as open transactions. When a payment or an invoice has been applied and there is no balance due on the transaction they are committed to history. There is no General Ledger Entry at this step therefore you can have a payment applied to an invoice for an extended period of time and un-apply then reapply and it does not effect the balance sheet or profit and loss in any General Ledger period.
There are different ways to apply payments. If you take a payment while writing an order, the two are connected together therefore when you assign serial numbers to the Order and post, the posting will be done automatically by the computer. You can also apply payments from a Customer Statement. You may also apply payments from the Main Screen; Sales; Apply Payments.