AR
Posted: Wed Dec 19, 2007 2:28 am
can any body help me regarding NATURAL APPLICATION & OVER APPLICATION. am not getting tht clearly........
Hi,
The transaction type that you define to a transaction indicates the type of application that it is permitted for the transactions that uses this transaction type
1.Natural application only, 2. Overapplication.
The Natural Application and Allow Overapplication options determines how the applications can affect the balance due for transactions using this type.
Natural Application refers to the type of application, either positive or negative, that a transaction requires to become closer to zero.
For example, invoices have a positive balance, so to reduce the balance due you need to create a negative application (such as apply a receipt).
Overapplication indicates whether you can overapply transactions using this type. For example, if you apply a Rs.2500 receipt to a $1500 invoice, you overapply the invoice and reverse its sign (from positive to negative).
try to create transaction types of both the types and enter transactions apply receipts and see the effects