- The post status for the application defaults to Do Not Post if the payment is applied to a line item prior to posting the payment. If the payment has not been posted, there are no Suspense account transactions to clear out, and no need to post the application.
- If a payment is posted and then applied, the application post status defaults to Not Yet Posted to clear out the Suspense Account:
The journal entries created for these scenarios are:
If a Not Yet Posted payment is applied:
- DR - Cash
- CR - AR Summary Account (defined in AR/Configuration/Default Accounts)
A posted payment creates the following transactions:
- DR -Cash
- CR - Unapplied Payment account (defined in AR/Configuration/Default Accounts)
When the posted payment is applied:
- DR - Unapplied Payment account (defined in AR/Configuration/Default Accounts)
- CR - AR Summary Account (defined in AR/Configuration/Default Accounts)
For more information, refer to What Journal Entries are created in Accounts Receivable.