• 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.