Open Item Application

Overview

Open Item Application is used to Net credit-balance documents (Invoices or Vendor Debits) and debit-balance documents (Vendor Credits) together.

Navigation

Accounts Payable > Open Item Application

Fields
 

Company:  This defaults to the user's Current Financial Company. It can be changed from the side slide menu bar to process documents for a different company.

Select vendors:  A picklist field for users to select from the options below.

• All Vendors: When selected, will show Vendor Credits for all Vendors.

• Only Vendors by AP Responsible User:  Select this if you want to search for Vendor Credits for a specific AP user. 'AP Responsible User' field will be enabled to select an AP user from the picklist.

• Vendors by Vendor Class:  Select this if you want to search for Vendor Credits for a specific Vendor Class. The 'Vendor Class' field will enable you to select a Vendor Class from the list available.

• One Specific Vendor:  Select this if you want to search for a specific Vendor. The 'Vendor' field will be enabled to enter a single Vendor.

Include Open Vendor Credits on Hold:  Where Vendor Credits have been marked as being on Hold, a user can include Vendor Credit on Hold transactions by checking this checkbox.

AP Responsible User:  Where “Only Vendors by AP Responsible User” is selected in 'Select Vendors', a user can select the relevant user from the list available.

Vendor Class:  Where “Vendors by Vendor Class” is selected in 'Select Vendors', a user can select the relevant Vendor Class from the list available.

Vendor:  Where “One Specific Vendor” is selected in 'Select Vendors', a user can enter the relevant Vendor in this field.

Due Date Cutoff:  Where “Only Open Vendor Credits Due on or Before Date” is selected in 'Date Selection', a user can enter/select a Due Date of their choice. The Due Date Cutoff defaults to the current date.

Application Date: A user can enter the date that they would like the application to be recorded. A user may select an Application Date before the current date (system date).

When selecting an Application Date earlier than the system (current date), then the date selected will be allowed as follows:

• The Application Date selected must be the latter of either:

  • The Vendor Credit transaction date or

  • Vendor Debit / AP Invoice transaction date

• Where the Payable Transaction is recorded in a currency other than (different to) the Company's Home currency, then:

  • If the application date falls into a period that is closed, then the application date so entered will not be permitted

  • If the application date falls into an open period, then the application date so entered will be permitted, and a General Ledger transaction for any foreign exchange gain or loss resulting from the application will be processed.

Buttons
 

Refresh Display:  This button displays results in the page's lower section according to the parameters selected. 

Auto-Apply Selected Vendor Credits: When Vendor Credit is selected from search results, clicking this button will initiate programmed logic to automatically apply Vendor Credit to Open Items (Invoice or Vendor Debit). More about Auto-Apply is discussed below.

Processing

Once the user has made their selections, the Open items will be displayed by clicking on the Refresh Display button.

The user can apply for a single Vendor Credit by selecting “Apply Credit” on the line of the credit they wish to apply, or they can select several Vendor Credits and click on “Auto-Apply Selected Vendor Credits”.

  IMPORTANT  Only posted Vendor Credits can be applied to the posted Invoices or Vendor Debits.

Selecting 'Apply Credit' for a single Vendor Credit will open the 'Apply Vendor Credit to Invoice / Vendor Debit' page. On this page, a user can override the Application Date entered on the main screen. The rules for Application Date selection, as noted above, still apply.

The user selects the relevant Invoice or Vendor Debit to apply the credit to the total amount of the Vendor Credit Amount to be applied will be displayed in the Transaction Total Field.

The button 'Apply Vendor Credit' is used to perform the final application or use 'Close' to go back to the main page without any changes. 
 

  NOTE  The system is designed only to select one Invoice / Vendor Credit per application.

Once the application is completed, the user will return to the Open Item Application page. They can then select another Vendor Credit to apply.
Where users prefer to use 'Auto Apply Selected Vendor Credits', they can select a single or multiple Vendor Credits and click on 'Auto-Apply Selected Vendor Credits'. 

For the 'Auto Apply Selected Vendor Credits', each Vendor Credit is processed in 4 steps, looking for Invoices / Vendor Debits to which the credit can be applied:

• Pass 1 - Look for a match on the Purchase Order Receipt (which, by default, also means a match on the Purchase Order and Line). 

• Pass 2 - Look for a match on the Purchase Order Line (which by default also means a match on the Purchase Order).   

• Pass 3 - Look for a match on the Purchase Order. 

• Pass 4 – Look for any eligible invoice.

The 'Auto Apply Selected Vendor Credits' applies the following logic:

• Sequences by 'Transaction Date' 

• Only where the Invoice Transaction Date is less than the Vendor Credit Date, and

• Only those transactions that have an open amount to apply

• If, after application, there is still an amount left on the Vendor Credit to apply, then the process repeats for the remaining amount.

When the Auto Apply Selected Vendor Credits has been completed, the user is returned to the Open Item Application screen, which will display the remaining unapplied Vendor Credits.

Once a user has completed all their Open Item Applications, they can exit the function.

SEE ALSO
 

Payable Session
Payable Transaction
Payable Application Transaction
Vendor Company
Vendor Class Company
Financial System User Company
Open Item Application (AP) in Lightning