Set up automatic payment application and payment application rules
Before setting up the payment application rules for applying payments to their related open entries, you need to specify some general settings regarding the matching criteria on the Payment Application Settings page.
To access these payment application settings, follow these steps:
Select the Search for Page icon in the top-right corner of the page, enter Payment Application Settings, and then select the related link.
In the Ledger Entries Matching Settings part of the page, you can activate which type of ledger entries need to be matched with the automatic application function.
In the General Settings part of the page, you can find the following options:
Disable Suggestions for Apply Manually page – You can select this toggle if the opening of Apply Manually page takes too long. Without the toggle, you'll see the Match Confidence field filled in for the different open ledger entries.
Enable Apply Immediately Rules – By selecting this toggle, certain payment application rules will be applied immediately if the rule is matched, and the system won't look for alternatives for the specific line. These rules are set up on the Payment Application Rules page, where the Apply Immediately field is set to Yes. If you don't select the toggle, the system will search for alternatives, resulting in a higher confidence match.
Related Party Name Matching – You can either disable the matching based on the related party name, for instance if your bank statements don't include the name of the related party name. Or, you can select which algorithm to use to determine the related party.
Update the General Ledger Setup page
If your company requires all postings to go through journals, you'll need to define the default general journal template that will be used when posting the payment reconciliation journal.
You can access both settings on the General Ledger Setup page, by following these steps:
Select the Search for Page icon in the top-right corner of the page, enter General Ledger Setup, and then select the related link.
On the General FastTab, you'll find the Journal Templ. Name Mandatory field. If this value is set to true, the Journal Templates FastTab will appear.
On the Journal Templates FastTab, you'll need to fill in the Bank Acc. Recon. Template Name and the Bank Acc. Recon. Batch Name fields.
Set up payment application rules
You can use payment application rules to specify if payments are automatically applied to their related open entries when you use the Apply Automatically function on the Payment Reconciliation Journal page.
To access the Payment Application Rules page, select the Search for Page icon in the top-right corner of the page, enter Payment Application Rules, and then select the related link.
The quality of each automatic application is shown as a value of Low to High in the Match Confidence field on the Payment Reconciliation Journal page according to the payment application rule that was used.
Each row on the Payment Application Rules window represents a payment application rule. Rules are applied in the order specified by the Sorting Order field. If multiple rules are used simultaneously, then the match confidence of the highest sorted rule is used.
The automatic application function is based on prioritized matching criteria. First the function tries, in prioritized order, to match text in the five Related-Party fields on a journal line with text in the bank account, name, or address fields of customers or vendors with unpaid documents. Then, the function tries to match text in the Transaction Text and Additional Transaction Info fields on a journal line with text in the External Document No. and Document No. fields on open entries. Last, the function tries to match the amount in the Statement Amount field on a journal line with the amount on open entries.
In addition to the matching criteria, the following criteria applies concerning the sign of the payment amount:
For negative amounts, a match is made first against open entries that represent customer invoices and then against vendor credit memos.
For positive amounts, a match is made first against open entries that represent vendor invoices and then against customer credit memos.
The Review Required field specifies if bank statement lines matched with this rule will be shown as recommended for review. For example, if you want bank statement lines with a match confidence of medium and low reviewed, you can select the Review Required field for all lines with match confidence medium or low.
You can set up new payment application rules or modify existing ones. To restore the default application rules, on the action menu of the Payment Application Rules page, select Restore Default Rules.
