'Apply to Oldest' – A Hit or Miss?

 'Apply to Oldest' – A Hit or Miss?

 

Welcome to the dynamic world of Microsoft Dynamics 365 Business Central! It's an exciting journey, navigating the intricacies of a new financial system, especially when it comes to managing multiple sets of books with unique requirements.

 

 The Challenge of Journal Entries Over Invoices

Our community members often share their experiences and today, we address a common scenario: What do you do when your business model relies on journal entries rather than invoicing, and you face inconsistencies with the 'Apply to Oldest' feature affecting your aging reports?

 

You're batching monthly levies, and your customers are set to 'Apply to Oldest', but sometimes it doesn't catch the oldest entry. When aging accuracy is paramount for automated payment reminders, this can be more than just a nuisance.

 

 Here's a case in point:

Entry number 158112 was applied when, ideally, it should have been entry number 157136, leading to discrepancies in the aging report. Payment terms set to CD (Current Date) should make the due date the same as the posting date, yet the issue persists.

 

 The Solution

1. Keep the Cut Off Date Field Open: When using 'Apply to Oldest', it's crucial to leave the cut off date field open in Business Central. This allows the system to pull in all due invoices. Setting a cut off date may cause Business Central to overlook older invoices, which would not be ideal for your needs.

2. Consider Manual Application: Although it may seem counterintuitive in an automated environment, manual application grants you more control over which entries to apply. This ensures that each entry is correctly attributed, preserving the integrity of your aging reports.

The goal is clear: achieve accurate aging reports and a seamless automated reconciliation process. By ensuring 'Apply to Oldest' functions correctly without a cut off date, or opting for a manual approach, you can maintain a reliable financial structure across multiple companies.

 

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