Acumatica Invoicing: How to Apply Payments to Separate Lines in AR

Acumatica Invoice Header

In a previous post introducing new features in Acumatica 2020 R1, we highlighted the ability to enter payments for accounts receivable documents by individual lines. In earlier versions of Acumatica ERP, payments could only be applied to invoices as a whole. In this article, we’ll show you how the new line item payment feature works.

In this article you’ll learn about:

Getting Started: Enable the Feature

First things first. You’ll need to make sure that the ‘Payment Application by Line’ feature is enabled. In addition, if the ‘Retainage Support’ feature is also enabled, you can also track retainage by individual lines.

See Also: What’s New in Acumatica 2020 R2

Acumatica Invoices and Memos

In the summary area of the Invoices and Memos form within Acumatica ERP, a ‘Pay by Line’ checkbox has been added.  When this checkbox is selected/active, you can apply payments at the line item level in the Document Details section below.

Note: The default value of the ‘Pay by Line’ checkbox on the Invoices and Memos document is inherited by the settings of the customer that you’ve chosen (specified in the ‘Financial Settings’ section of the customer record).

Changes to Document Details Tab

To accommodate the new line item payments in Acumatica Accounts Receivable, the following columns have been added to the Document Details tab/section:

Acumatica Invoices and Memos Screen
  • Line Nbr.: The number of the document line.
  • Balance: The outstanding balance of the individual document line. The balance of the line includes the applicable taxes; document-level taxes are prorated among all the lines of a document. If a payment applied to the document line has been released, the balance is updated accordingly. This column is hidden until the original document (invoice or a debit memo) is released.
  • Unreleased Retainage: A hidden column that reflects the retainage amount that has been associated with the document line but has not been released yet.
  • Retained Tax: The amount of tax calculated based on the value in the Retainage Amount column.
  • Tax Amount: The total tax amount calculated for the line. The column is hidden by default and appears in the table when the original document is released. For retainage invoices, this column displays the total of all retained taxes.
  • Cash Discount Balance: The balance of cash discounts for the whole document, distributed proportionally among all document lines.

Note: if the ‘Pay by Line’ checkbox is NOT enabled, these columns are not visible (except Line Nbr. which remains).

Changes to Acumatica Payments & Applications Form

A few new columns have been added to the ‘Documents to Apply’ tab of the Payments and Applications form as shown in the screenshot below:

Acumatica Invoice Payments and Applications Screen
  • Line Nbr.: The number of the document line to which the payment can be applied. If the line represents the entire document, 0 is specified.
  • Inventory ID, Project, Project Task, Cost Code, and Account: The inventory item, project, project task, cost code, and account associated with the document line.

The functionality of document loading on the ‘Documents to Apply’ tab has changed. You load documents and individual document lines either manually or by clicking Load Documents. When you apply filters in the ‘Load Options’ dialog box that pops up after clicking ‘Load Documents’, the Acumatica system loads documents and individual document lines.

You can add lines from different invoices that are associated with the same customer.  For each document line, you can manually specify a full or partial amount to be paid. When the payment is released, the document balance and the balances of the document lines are updated accordingly.

How To Pay Separate Lines of an AR Invoice

In the ‘Payments and Applications’ form, you can pay separate lines of an Acumatica AR Invoice by following these steps:

  1. Open the Invoices and Memos form.
  2. In the Reference Number box, select the reference number of the invoice whose lines you want to pay.
  3. On the form toolbar, click Actions > Enter Payment/Apply Memo. The system then navigates to the Payments and Applications form.
  4. In the Summary area of the Payments and Applications form, review the amount in the Payment Amount box.
  5. In the Application Date box, review the date (update, if necessary).
  6. On the Documents to Apply tab, review the invoice lines that are selected by default.
  7. Click the Refresh button to the right of the Payment Amount box. Acumatica automatically updates the amount in this box with the amount of the invoice line or lines.
  8. Click Save to save the changes.
  9. To release the payment, on the form toolbar, click Release.

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