When a customer sends a payment that has an additional amount that is to be applied to the principal, you can use the Principal Payments functionality to apply the overage to reduce the remaining principal on a scheduled payment. To do this, follow these steps:
1. While keying the cash receipt, click on the
Apply button. Or you can post the cash receipt and then open the
Apply Sales Documents window. To do this, click on
Transactions, point to
Sales and click
Apply Sales Documents.
2. In the Apply Sales Documents window, mark the scheduled payment invoice to apply to.
3. Click
OK.
4. If your cash receipt has a larger amount than the scheduled payment invoice is for, you will prompted with the following message:
Would you like to apply the principal payment amount to the principal?
Note: Having more than one open scheduled payment will prevent you from applying the overage to the principal payment, and therefore, the above message will not pop up for you when you apply a cash receipt with an overage to only one of the open scheduled payment documents. For the Principal Payment window to pop up, you would have to first apply to all the open scheduled payments first. If you apply to just one open scheduled payment, and not any others that are open, the Principal Payment window will not pop up. This is by design.
Note: There was a known issue (Bug #58248) in earilier versions that this message would not pop up if Project Accounting was installed, but this was fixed in SP5 for Microsoft Dynamics GP 10.0 and SP1 for Microsoft Dynamics GP 2010.
5. Click
Yes. The Principal Payment window appears to confirm the action.
6. Click
OK to apply the amount listed to the principal for the Schedule Number listed. It will recalculate the Principal and interest amounts on this scheduled payment to adjust.
7. Click
OK in the Apply Sales Documents window.
8. Click
Post to post the cash receipt, if applicable.
Note: After the principal amounts have been adjusted, the overage will be displayed in Inquiry as a separate document with a sequence number of 'A01'. (The regular released scheduled payments had '001', '002', etc as the sequence numbers.)