On–account credits are credits you assign to your customer’s account that are not related to a specific invoice. For example, if your customer remits payment of $100 for a $90 invoice, you can create an on–account credit for ten dollars. You can then apply this on–account credit to another transaction.

• You can specify the debit item to credit in the Transactions window or create an on–account credit by not specifying one. You can apply and reapply on–account credits to invoices, debit items, and chargebacks.

• You can also place amounts on–account when manually applying receipts in the Applications window. For this the auto-cash rules set (it defaults from customer bill-to, customer and system options) should have remaining remittance as on-account instaed of unapplied.

To place an amount on account, enter ’On Account’ in the Transaction Number field. The default amount is the unapplied
amount of the receipt, but you can change it. Receivables marks any portion of this receipt that you do not apply or place on–account as ’Unapplied’.

Applying On–Account Credits
Receivables lets you apply on–account credits to your customer’s open debit items. For example, your customer has $200 on–account. You can apply the on–account credit to one or more open debit items to either reduce or close the on–account credit and your customer’s outstanding balance.

In the above transaction, an on account credit (CM#500611) of amount - 80,220 is applied against the invoice 500591

To apply an on–account credit to a transaction
1. Navigate to the Transactions Summary window.Query the on–account credit to apply & Choose Applications.

2. Select the transaction to which you want to apply this on–account credit from the list of values. Receivables enters the Amount Applied and updates the Unapplied Amount of the on–account  credit and the Balance Due for this transaction.

The default Amount Applied is the balance due for this transaction, unless the balance due is greater than the amount of this on–account credit. In this case, the default Amount Applied is the unapplied amount of the on–account credit. You can accept this amount or enter a different amount (for example, if you want to apply this on–account credit to more than one transaction).

Note: Receivables uses the transaction type of the debit item to which you are applying credit to validate the application amount. If the transaction type forces natural application only, you must enter an application amount which brings the debit item’s balance closer to zero. If the transaction type does not
allow overapplication, you cannot enter an amount that would reverse the sign of the balance of the debit item.

3. To apply this on–account credit to another transaction, repeat step 2.

4. When you are satisfied with the application of this on–account credit, save your work. Receivables updates your customer’s account balances.