Setting Tolerance (+/-) Amount
Setting Tolerance (+/-) Amount
Tolerance (+/-)
The ability to set a tolerance amount has been added to payments entered through Journal Pay. Previously, this was only available for payments entered via Customer View.
Note: The tolerance amount is now common for all users. The amount is set in the Administration module (select System à Set System Defaults à A/R Billing tab).
How does tolerance work?
-The amount of the payment applied to interest will be offset (+/-) by the tolerance amount designated.
- If the payment amount entered results in an overpayment, an unapplied will only be created if the amount of the overpayment is above and beyond the tolerance amount.
Tolerance Examples:
For the following examples, assume that the tolerance amount is set to $5.00
Example 1 (overpayment within tolerance): Sam Smith has 1 outstanding invoice with the following balances due:
Principal: $2,000
Interest: $12.28
Sam makes a payment of $2,013.28, an adjustment of $1.00 will be made to the amount applied to interest, resulting in an invoice paid in full. The payment will be allocated as follows:
Principal: $2,000
Interest: $13.28
Example 2 (underpayment within tolerance): Sam Smith has 1 outstanding invoice with the following balances due:
Principal: $2,000
Interest: $12.28
Sam makes a payment of $2,011.28, an adjustment of - $1.00 will be made to the amount applied to interest, resulting in an invoice paid in full. The payment will be allocated as follows:
Principal: $2,000
Interest: $11.28
Example 3 (overpayment outside tolerance): Sam Smith has 1 outstanding invoice with the following balances due:
Principal: $2,000
Interest: $12.28
Sam makes a payment of $2,018.28, no adjustment will be made to the payment applied to the invoice since the customer paid $6.00 more than what was due. The user will be prompted to create an unapplied for the entire amount of the overpayment. The resulting payment allocation and unapplied will be as follows:
Principal: $2,000
Interest: $12.28
Unapplied: $6.00
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