Payment Journal Date Restriction on Application

In “Cash Receipt Journals”, if you try to apply the receipt to an invoice which has a date which is more recent that the date on the receipt then you get the following message :

"You are not allowed to apply and post an entry to an entry with an earlier date.Instead, post Payment and then apply it to Invoice ".

Our client often enters payments where the dates are older than the invoices to which they apply. They would like us to modify the procedure to remove this restriction. I have a feeling that the restriction must be there for a very good reason. Does anyone know what that is ?

Normally it is like this: first you have an invoice and after it you enter the payment with application on the invoice.

I guess that by receipt you mean - the payment document - right?

So what your client wants is perfectly OK and the logical explanation is plain and simple: first you have the invoice and then you make the payment. If you want to do it the other way around then it’s the pre-payment procedure!

I’m not sure I understand your question, please tell me if what I wrote is what you want to find out or if not - rephrase so I can give you the right answer.

Good luck,


Thank you for your reply, Raluca. However, this doesnt resolve my problem I’m afraid.

Yes, by ‘receipt’ I meant the customer payment.

Some payments are received prior to invoicing. So the date on the payment is earlier than the date on the invoice. However, the client enters all payments at the end of the month in a batch. They use the ‘Applies-To Doc. No.’ field on the journal line to apply the payments to their corresponding invoices. However, if the payment is dated earlier than the invoice, the system generates the message I described in my first post.

If the client was prepared to enter the payments first (as pre-payments) then perhaps the problem could be avoided. Unfortunately they have recently migrated from a system which allowed them to do this (enter the payments at the end of the month) and they are very resistent to changing their operational procedures.

In fairness, I can see their point. I dont understand why Dynamics wont allow the application of payments to later invoices in the payment journal. If you post the payment unapplied you can immediately go to the application form and apply it to the invoice with no problem.

Can someone explain why the payment journal behaves in this way ?