Defining Transaction Code Prefixes
This section includes a list of the transaction code prefixes, the transaction category, and the effect each has on customer records and the General Ledger accounts receivable account.
The n is a variable that indicates you can add characters of your own to the prefix, for example: 2RTLCH.
• 1nnnnn = Sales Invoice: Type 1nnnnn transactions are invoices from the Sales module. These transactions debit the customer record and increase the amount owed. You cannot access these Transaction Codes from Accounts Receivable.
• 2nnnnn = Customer Charge: A customer charge debits the customer record and increases the total owed by the customer.
The General Ledger accounts receivable account is debited to reflect the increase. This transaction category includes all customer charges that post from the Accounts Receivable module.
• 3nnnnn = Payment Correction: A payment correction debits the customer record and the General Ledger accounts receivable account and increases the amount owed by the customer.
This transaction category is used to reverse a payment that was posted in error. The payment correction does not reinstate the invoices that were paid or partially paid by the incorrect payment.
The Aged Analysis Report still shows that the payment was applied to them. The type 3 transaction remains in the open item file with the remaining amount to be paid. When the correct payment is posted, it is applied to the type 3 transaction, not the original charge transaction.
• 4nnnnn = Payment Received: A payment credits the customer record and the General Ledger accounts receivable account, decreasing the amount owed by the customer.
To apply a type 4 payment to specific invoices, enter the invoice numbers or select an invoice from the Lookup. If you do not want to apply a payment to a specific invoice, enter it but don’t specify a debit type transaction. It will automatically apply to debits in the following order until the full amount of the payment is applied:
The oldest type 9 finance charge followed by the next oldest, and so on, until all type 9s are paid off.
The oldest type 3 payment correction followed by the next oldest, and so on, until all type 3s are paid off.
The oldest type 2 customer charge followed by the next oldest, and so on, until all type 2s are paid off.
The oldest type 1 invoice followed by the next oldest, and so on, until all type 1s are paid off.
If, after the type 1s are paid off, the entire payment hasn’t been applied (the payment exceeded the total amount due), the remaining amount of the payment stays in the open item file and automatically applies to the next debit posted. It continues to apply to the debits as they are posted until the payment is exhausted.
• 5nnnnn = Customer Credit: A credit transaction credits the customer record and the General Ledger accounts receivable account and decreases the amount owed by the customer.
In payer/payee relationships, this moves the amount due from the payer to the payee.
To apply a type 5 payment to specific invoices, enter the invoice number or select an invoice from the Lookup. If you do not want to apply a credit to a specific debit transaction, enter it but don’t specify a debit type transaction. It will automatically apply to debits in the following order until the full amount of the credit is applied:
The oldest type 9 finance charge followed by the next oldest, and so on, until all type 9s are paid off.
The oldest type 0 balance forward followed by the next oldest, and so on, until all type 0s are paid off.
The oldest type 2 customer charge followed by the next oldest, and so on, until all type 2s are paid off.
The oldest type 3 payment correction followed by the next oldest, and so on, until all type 3s are paid off.
The oldest type 1 invoice followed by the next oldest, and so on, until all type 1s are paid off.
If, after the type 1s are paid off, the entire credit hasn’t been applied (the credit exceeded the total amount due), the remaining amount of the credit stays in the open item file and automatically applies to the next debit posted. It continues to apply to the debits as they are posted until the credit is exhausted.
• 6nnnnn = Unapplied Payment: An unapplied payment credits the customer record and the General Ledger accounts receivable account and decreases the amount owed by the customer.
An unapplied payment does not reduce the amount remaining of any debit transaction. Instead, it remains in the open item file with an amount remaining to be credited until you activate and apply it. To activate and apply an unapplied payment, use the code prefix without a suffix, a 6 (six) for a Transaction Code.
Use this category if you or your customer do not want to apply the credit to a specific invoice. You can go back and apply it to a specific invoice at any time.
When you use this code, you have the option to specify a debit transaction to which the payment applies, or to apply the payment in the same order as the payment transaction, code 4 (four).
• 7nnnnn = Unapplied Credit: This type of transaction credits the customer record and the General Ledger accounts receivable account and decreases the amount the customer owes.
Unapplied credits do not reduce the amount remaining of any debit transaction. Instead, it remains in the open item file with an amount remaining to be credited until you activate and apply it. To activate and apply an unapplied credit, use the code prefix without a suffix, a 7 (seven) for a Transaction Code.
When you use this code, you have the option to specify a debit transaction to which the payment applies, or to have the payment applied in the same order as the credit transaction, code 5 (five).
• 8nnnnn = Adjust Leased Item/Prepaid Service: This transaction type allows you to return leased items and make increases or decreases to the quantity of prepaid services. You cannot import these transactions.
• 9nnnnn = Finance Charge: A finance charge debits the customer record and the General Ledger accounts receivable account and increases the amount owed by the customer. Use this transaction type to record manually calculated finance charges.