Drag and Drop Question A company uses Business Central. A user mistakenly partly applied two cash receipts to a posted sales transaction. You need to remove the first cash receipt from the posted…

The correct answer is Navigate to Unapply Entries from the relevant customer ledger entry.; Unapply the second payment.; Unapply the first payment.; Apply the second payment to the customer ledger entry. Business Central: Unapplying Cash Receipts - Explanation Core Concept: Why This Order Matters Business Central enforces LIFO (Last In, First Out) unapplication. You cannot remove an application that has another application layered on top of it. Think of it like stacking plates…

Financial management

Question

Drag and Drop Question A company uses Business Central. A user mistakenly partly applied two cash receipts to a posted sales transaction. You need to remove the first cash receipt from the posted sales transaction to correct the mistake. Which four actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order. Answer:

Exhibit

Answer Area

Drag items

Post a reversing cash receipt and select the customer and relevant payment entry.Apply the second payment to the customer ledger entry.Navigate to Reverse Transaction from the relevant detailed customer ledger entry.Unapply the first payment.Unapply the second payment.Navigate to Unapply Entries from the relevant customer ledger entry.

Correct arrangement

Navigate to Unapply Entries from the relevant customer ledger entry.
Unapply the second payment.
Unapply the first payment.
Apply the second payment to the customer ledger entry.

Explanation

Business Central: Unapplying Cash Receipts - Explanation

Core Concept: Why This Order Matters

Business Central enforces LIFO (Last In, First Out) unapplication. You cannot remove an application that has another application layered on top of it. Think of it like stacking plates - you must remove from the top down.

Step-by-Step Breakdown

Step 1: Navigate to Unapply Entries from the relevant customer ledger entry

Why first: This is the correct entry point. You locate the Customer Ledger Entry (the posted sales transaction) and access the "Unapply Entries" function from it. This opens a view of all applications linked to that entry, giving you the control surface for steps 2 and 3.

Distractor note: "Navigate to Reverse Transaction from the relevant detailed customer ledger entry" is wrong here - Reverse Transaction creates a full reversing posting, which is a heavier operation than unapplication. The question only asks to unapply, not reverse.

Step 2: Unapply the second payment

Why second: Even though the goal is to remove the first payment, BC's LIFO constraint requires removing the most recently applied entry first. The second payment is "on top" - you cannot touch the first until this is cleared.

Common mistake: Trying to unapply the first payment immediately. BC will block this with an error because a later application still references the same ledger entry.

Step 3: Unapply the first payment

Why third: Only now, with the second payment unapplied, is the first payment the "top" entry and eligible for unapplication. This step achieves the actual goal - removing the mistaken first cash receipt from the sales transaction.

Step 4: Apply the second payment to the customer ledger entry

Why last: The second payment was legitimate - it should remain applied. Unapplying it in step 2 was a necessary intermediate step, not the end state. You must re-apply it to restore the correct partial payment on the invoice.

Common mistake: Stopping after step 3 and forgetting to reapply the second payment, leaving the invoice showing more open balance than it should.

Why the Two Distractors Are Wrong

Distractor	Why Excluded
Post a reversing cash receipt	Used to fully cancel a cash receipt posting - overkill; creates new G/L entries
Navigate to Reverse Transaction (detailed CLE)	Reverses the entire payment transaction; wrong scope for a targeted unapplication

Summary Rule

Goal: Remove payment 1 only → You must unapply 2, unapply 1, re-apply 2. Never skip the re-application step.

Topics

#unapply entries#customer ledger entries#payment application#posted sales transaction

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