Auto-application of Payments to Invoices (Wires and ACH)

The Invoice Auto-application field in the Settings > Advanced Settings tab for the Bank File to NetSuite flow allows you to enable or disable the Auto-application of Payments feature.

By default, the auto-application of payments to invoices is On for Wires and ACH. In case of wires and ACH, if there are no invoices in the incoming file and this setting is ON then the payment is applied to the open invoices for the customer in the FIFO order (First-in-first out order).  This means, after identifying the customer for a transaction, CAM applies payment on the open invoices in the order of their creation date (Oldest open invoice is closed first).

For example, consider the following scenario when the Invoice Auto-application field is enabled:

Transaction Amount: $ 500

In this scenario, the transaction amount of $500 will be used to apply payments on INV111, INV222, and INV 444. For INV444, partial payment of $300 gets applied.

Note: Even in case of exact amount match between Invoice amount and transaction amount, payment in NetSuite is created based on invoice creation date.

If there is at least one invoice number supplied in the bank file then auto-application is not done for that transaction. Conversely, auto-application of payment is enforced for a transaction only when there is no invoice information supplied in the bank file for that transaction

If this field is not selected, the payment is only applied to the incoming invoices in the files.

The following images display the records and fields within NetSuite that you can use for verification of functionality:

The Native Transactions tab in the Celigo Cash App Transaction record holds information about the payment amount and payment record. Click the Payment record link to open payment record. 

The payment record displays associated invoices being used by the Auto-application of payments along with the applied payment information. 

Open the associated customer record and go to Sales > Transactions to verify the applied payment against the open invoices in the FIFO order.