How to: Apply Vendor Ledger Entries

When you send a payment or receive a refund from a vendor, you must decide whether to apply the payment or refund to one or more open entries. You can specify the exact amount that you want to apply to the payment receipt or refund, and then only partially apply vendor ledger entries. You must apply all vendor ledger entries to obtain correct vendor statistics and reports of the account statements and finance charges.

Note
Vendors may sometimes give a payment refund instead of a credit memo to offset against future invoices, especially when you return items that you have already paid for or when you have overpaid an invoice.

You can apply vendor entries when you:

Enter a payment.
Enter a credit memo.
Open a previously posted credit document.

After you have selected an entry from the Apply Vendor Entries window by choosing OK, or several entries by setting the applies-to ID, the Amount field on the journal line will contain the sum of the remaining amounts for the posted entries that you have selected, unless the field is already filled.

If you select Apply to Oldest in the Application Method field on the vendor card, the payment is applied automatically.

If you are applying already posted entries, you select one of the entries as the applying entry with the function Apply Entries. You can remove an applying entry with the function Unapply Entries. If you set a new applying entry when there is an applying entry in the header, the new entry will become the applying entry and the former applying entry will be removed as applying entry. But the former applying entry will now have a value in the Applies-to ID field.

Applying Payments

To apply a payment to a single vendor ledger entry

In the Search box, enter Payment Journal, and then choose the related link.
In the Payment Journal window, on the first journal line, enter the relevant information about the payment entry.
In the Applies-to Doc. No. field, choose the field to open the Apply Vendor Entries window.
In the Apply Vendor Entries window, select the entry to apply the payment to.
On the line in the Amount to Apply field, enter the amount to apply to the entry.
If you do not enter an amount, then the maximum amount is automatically applied. At the bottom of the Apply Vendor Entries window, you can see the amount in the Applied Amount field, and you can see whether the application balances.
Choose the OK button.
The Payment Journal window shows the entry that you have entered in the Applies-to Doc. Type field and the Applies-to Doc. No. field.
On the Home tab, in the Process group, choose Post to post the payment journal.

To apply a payment to multiple vendor ledger entries

In the Search box, enter Payment Journal, and then choose the related link. You can also use a purchase journal.
On the first journal line, enter the relevant information about the payment entry.
On the Actions tab, in the Functions group, choose Apply Entries.
In the Apply Vendor Entries window, select the lines with the entries to apply the payment to.
On the Navigate tab, in the Application group, choose Set Applies-to ID.
On each line in the Amount to Apply field, enter the amount to apply to the individual entry.
If you do not enter an amount, then the maximum amount is automatically applied. At the bottom of the Apply Vendor Entries window, you can see the amount in the Applied Amount field, and you can see whether the application balances.
Choose the OK button to close the Apply Vendor Entries window.
On the Home tab, in the Process group, choose Post to post the payment journal.

Applying Credit Memos

To apply a credit memo to a single vendor ledger entry

In the Search box, enter Purchase Credit Memo, and then choose the related link.
Open the credit memo that you want to apply.
Enter the relevant information in the header.
On the Application FastTab, in the Applies-to Doc. No. field, select the entry to apply the credit to.
On the line in the Amount to Apply field, enter the amount to apply to the entry.
If you do not enter an amount, then the maximum amount is automatically applied. At the bottom of the Apply Vendor Entries window, you can see the amount in the Applied Amount field, and you can see whether the application balances.
Choose the OK button.
The Purchase Credit Memo window shows the entry that you have selected in the Applies-to Doc. Type field and the Applies-to Doc. No. field. The window also shows the amount of the credit memo to be posted, adjusted for any payment discounts.
On the Home tab, in the Process group, choose Post to post the purchase credit memo.

To apply a credit memo to multiple vendor ledger entries

In the Search box, enter Purchase Credit Memo, and then choose the related link.
Open the credit memo for the purchase credit that you want to apply.
Enter the relevant information on the header.
On the Actions tab, in the Functions group, choose Apply Entries.
Select the lines with the entries to apply the credit memo to.
On the Navigate tab, in the Application group, choose Set Applies-to ID.
On each line in the Amount to Apply field, enter the amount to apply to the individual entry.
If you do not enter an amount, then the maximum amount is automatically applied. At the bottom of the Apply Vendor Entries window, you can see the amount in the Applied Amount field, and you can see whether the application balances.
Choose the OK button.
The Purchase Credit Memo window shows the amount of the credit memo to be posted, adjusted for any payment discounts.
On the Home tab, in the Process group, choose Post to post the payment credit memo.

Applying Posted Documents

To apply posted vendor ledger entries

In the Search box, enter Vendors, and then choose the related link.
Open the relevant vendor with entries that have already been posted.
On the Navigate tab, in the History group, choose Ledger Entries.
On the Actions tab, in the Functions group, choose Apply Entries.
In the Apply Vendor Entries window, you can see the open entries for the vendor.
Select the line with the entry that will be applied.
On the Navigate tab, in the Application field, choose Set Applies-to ID.
The Applies-to ID field displays three asterisks (***) if you work in a single-user system or your user ID if you work in a multiuser system.
For each line in the Amount to Apply field, enter the amount to apply to the individual entry.
If you do not enter an amount, then the maximum amount is automatically applied. You can see the amount in the Applied Amount field at the bottom of the Apply Vendor Entries window.
On the Navigate tab, in the Application group, choose Post Application.
The Post Application window opens with the document number of the applying entry and the posting date of the entry with the most recent posting date.
Choose the OK button to post the application.

Viewing Closed Vendor Ledger Entries

To view closed vendor ledger entries

In the Search box, enter Vendors, and then choose the related link.
Open the relevant vendor.
On the Navigate tab, in the History group, choose Ledger Entries.
On the ledger entry list, you can see that the Open field is not selected on the line that contains the ledger entry that was fully applied.

Tip
For more information about how to work with fields and columns, see Working with Microsoft Dynamics NAV. For more information about how to find specific pages, see Search.