Hello, we are seeing that Applied Cash Receipts are using the ApplicationDate(AppliedCashReceiptsDetail) for both the GLs Transaction Date & Posting Date. This is an issue for us when trying to BackDate a RO’s Posting Date and Transaction Date. There is also a validation that does not let the ApplicationDate(AppliedCashReceiptsDetail) be before the Posting Date. So we cannot set the ApplicationDate(AppliedCashReceiptsDetail) = TransactionDate of the Cash Receipt Header. Why does this validation exist, and why are you guys mapping the ApplicationDate to both the GL’s TransactionDate and ClosingDate? For now, our solution is setting ApplicationDate(AppliedCashReceiptsDetail) = PostingDate
The expectation is that you should be able to backdate the posting date of a cash receipt, especially at month end. Some reasons the application date should not be earlier than the posting date are:
The application date impacts the aging report. If a payment is applied today, but the application date was set to a past date, it would remove the invoice retroactively and could compromise subledger accuracy.
The application date impacts the customer statements because an invoice would show as paid before the payment is posted.
Customers often send a single payment for multiple invoices across different months. The application date could be manipulated to ensure the revenue recognition for those specific invoices aligns with the customer’s intended period of payment when the revenue is recognized on payment.
It can affect metrics, such as Days Sales Outstanding and the AR turnover ratio potentially skewing collections to look more efficient which could mislead investors.
1 Like
Sounds good, thank you for the explanation.