Manual application examples

  • 07/01/2025
  • 5 minutes to read

This article describes several common scenarios where you may need to manually apply bank statement lines to open ledger entries in Continia Banking. These examples show how to handle partial payments, payments covering multiple invoices, discount situations, small bank fees, internal bank transfers, and mixed account type applications.

Each scenario includes setup requirements, step-by-step instructions, and the expected result after completing the manual application.

Example 1: Partial invoice payment

Scenario: A customer pays $500 on a $1,000 invoice.

Setup: No special setup is required beyond standard banking configuration.

Steps:

  1. Open Apply Entries for the $500 bank statement line.
  2. Locate the customer’s $1,000 invoice.
  3. Enter 500 in the Applied Amount field.

Result: The invoice now has a remaining balance of $500, and the bank statement line is fully applied. A payment application proposal is created with Found By set to Manual Application.

Example 2: Multiple invoices in one payment

Scenario: A vendor payment of $3,500 covers three invoices of $1,000, $1,200, and $1,300.

Setup: None required.

Steps:

  1. Open Apply Entries for the $3,500 bank statement line.
  2. Click Show Vendor Ledger Entries to filter the list.
  3. Select all three entries and click Apply.
  4. Verify that the Difference field shows $0.

Result: All three invoices are closed. The bank statement line is fully applied. Three payment application proposals are created, each with Found By set to Manual Application.

Example 3: Payment with discount

Scenario: A customer invoice of $1,000 includes a 2% payment discount ($20) if paid within 10 days. The customer pays $980 within the discount period.

Setup: Payment discount terms must be configured on the invoice.

Steps:

  1. Open Apply Entries for the $980 bank statement line.

  2. Locate the customer’s $1,000 invoice.

  3. Select the Applied checkbox. The system automatically sets Applied Amount to $980 and Applied Pmt. Discount to $20.

  4. Confirm that the Difference is $0.

Result: The invoice is fully closed with a $980 payment and a $20 discount.

Example 4: Payment with small bank fee

Scenario: A $1,000 invoice is paid, but the bank statement shows $998.50 because of a $1.50 bank fee.

Setup: Payment tolerance must be configured in General Ledger Setup.

Steps:

  1. Open Apply Entries for the $998.50 bank statement line.

  2. Locate the customer’s $1,000 invoice.

  3. Enter 998.50 in the Applied Amount field.

  4. Enter 1.50 in the Applied Pmt. Tolerance field.

Result: The invoice closes using payment tolerance. The $1.50 difference is handled according to the tolerance setup.

Example 5: Internal bank transfer

Scenario: A transfer of $5,000 moves from one company bank account to another.

Setup: Both bank accounts must exist in Business Central and be active for Continia Banking.

Steps:

  1. Import bank statements for both bank accounts.
  2. On the source account reconciliation, open Apply Entries.
  3. Click Show Bank Account Ledger Entries.
  4. Select the receiving bank account ledger entry and select Applied.
  5. Repeat the process on the receiving account reconciliation, applying the corresponding source account entry.

Result: Both bank statement lines apply to each other. No journal lines are created because both sides already exist as bank account ledger entries.

Note

Internal bank transfers never create journal lines because both sides of the transaction are already posted as bank account ledger entries.

Example 6: Mixed account type application

Scenario: A $2,500 bank statement line includes a customer payment of $1,500 and a vendor refund of $1,000.

Setup: None required.

Steps:

  1. Open Apply Entries for the $2,500 bank statement line.
  2. Click Show Customer Ledger Entries and apply the $1,500 customer invoice.
  3. Click Show Vendor Ledger Entries and apply the $1,000 vendor credit memo.
  4. Click Show All and verify that Difference is $0.

Result: Two payment application proposals are created (one customer, one vendor), each marked with Found By set to Manual Application. Journal lines are created based on the account type.

Applying ledger entries manually
Introducing manual application
Manual application FAQ
The Apply Ledger Entries page