Aptify automatically generates general ledger (GL) entries when a payment is saved. A typical Payments record has one or more GL entries that credit accounts receivable (A/R) accounts from the associated order and a debit to whatever account is linked to the payment's Payment Type (typically a Cash account).
This topic contains the following sub-topics related to Payments and GL entries:
Payment Levels
Payment levels are similar to order levels in the Orders service (see About Order Levels and GL Accounts for details).
Payment levels allow the cash receipt to be placed into multiple GL accounts for the same payment type, thus allowing a user to determine where the cash is deposited. The model for payment levels works similarly to order levels, in that the payment level is first defined at the company level, then at the person level, and finally at the individual payment level. As with the order levels, it is possible to override the default company payment level at the Persons record, and it is possible to override the default person payment level at the Payments record.
Payment Types
Aptify provides the ability to configure any number of different payment types. Each payment type defined in the system contains several attributes that are used to determine several key points of integration with the accounting system.
See Managing Payment Types for more information on Payment Types.
Crediting A/R Accounts
When a customer makes a payment for an order, Aptify automatically generates GL entries to debit the cash account and credit the appropriate Accounts Receivable (A/R) account(s).
Crediting A/R accounts is a straight-forward procedure if your organization uses a single A/R account for all products. However, it is a little more complicated if your organization uses multiple A/R accounts (for example, one A/R account per product).
In this case, if a customer makes a partial payment for an order that contains multiple products that use different A/R accounts, Aptify proportionally splits the payment among the appropriate A/R accounts by default. If you want to apply the partial payment to a specific product, you need to specify the product's order line in the Payments form. See Processing Payments for information on how to associate a payment with a particular order line.
The remainder of this topic describes how Aptify credits A/R accounts if your organization uses multiple A/R accounts (for example, one per product). You can skip this content if your organization only uses a single A/R account.
Consider the following examples that illustrate how payments are applied to multiple A/R accounts:
- Example 1: Single Product
- Example 2: Two Products with Different A/R Accounts
- Example 3: Partial Payment for Two Products with Different A/R Accounts
- Example 4: Specifying Order Lines in a Partial Payment for Two Products with Different A/R Accounts
Example 1: Single Product
A customer orders a single product that costs $25. After shipping the order, the following Order GL entries are created:
Account | Debit | Credit |
A/R used by product | $25 | 0 |
Sales | 0 | $25 |
When the customer pays in full for the order, the following Payment GL entries are created:
Account | Debit | Credit |
Cash | $25 | 0 |
A/R used by product | 0 | $25 |
Example 2: Two Products with Different A/R Accounts
A customer orders two products that use different A/R accounts. Product 1 costs $25 and Product 2 costs $30. After shipping the order, the following Order GL entries are created:
Account | Debit | Credit |
Sales | 0 | $55 |
Product 1 A/R | $25 | 0 |
Product 2 A/R | $30 | 0 |
When the customer pays in full for the order, the following Payment GL entries are created:
Account |
| Debit | Credit |
Cash |
| $55 | 0 |
Product 1 A/R |
| 0 | $25 |
Product 2 A/R |
| 0 | $30 |
Example 3: Partial Payment for Two Products with Different A/R Accounts
A customer orders two products that use different A/R accounts. Product 1 costs $25 and Product 2 costs $30. After shipping the order, the following Order GL entries are created:
Account | Debit | Credit |
Sales | 0 | $55 |
Product 1 A/R | $25 | 0 |
Product 2 A/R | $30 | 0 |
The customer makes a partial check payment of $25, and the following Payment GL entries are created:
Account | Debit | Credit |
Cash | $25 | 0 |
Product 1 A/R | 0 | $11.36 |
Product 2 A/R | 0 | $13.64 |
By default, Aptify credits all of the A/R accounts. The amount of the credit is based on each A/R account's percentage of the total order amount. In the example above, Product 1 accounts for approximately 45.45% of the total order amount ($25÷$55) so the amount credited to Product 1's A/R account is $11.36 ($25 x 45.45%).
Example 4: Specifying Order Lines in a Partial Payment for Two Products with Different A/R Accounts
A customer orders two products that use different A/R accounts. Product 1 costs $25 and Product 2 costs $30. After shipping the order, the following Order GL entries are created:
Account | Debit | Credit |
Sales | 0 | $55 |
Product 1 A/R | $25 | 0 |
Product 2 A/R | $30 | 0 |
The customer makes a partial check payment of $25. In the Payment form, the organization specifies that the entire payment applies to Product 1's Order Line only. The following Payment GL entries are created:
Account | Debit | Credit |
Cash | $25 | 0 |
Product 1 A/R | 0 | $25 |
Product 2 A/R | 0 | 0 |
See Processing Payments for information on how to associate a payment with a particular order line.