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Natural Application and Overapplication

Discussion in 'Oracle Projects' started by sudhir, May 22, 2014.

  1. sudhir

    sudhir Active Member

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    Pune India
    Hi All

    Is there any one explain about Natural Application and Over application in transaction types in Oracle Receivables.

    Thanks in Advance
    Sudhir Reddy
  2. himanshugosain

    himanshugosain Active Member

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    Hi Sudhir,

    Please find the detail explaination Below.

    Himanshu Gosain

    Natural Application and Allow Overapplication Rules

    The Natural Application Only and Allow Overapplication options determine how applications can affect the balance due for transactions using this type.

    Natural Application refers to the type of application, either positive or negative, that a transaction requires to become closer to zero. For example, invoices have a positive balance, so to reduce the balance due you need to create a negative application (such as apply a receipt).

    Overapplication indicates whether you can overapply transactions using this type. For example, if you apply a $500 receipt to a $400 invoice, you overapply the invoice and reverse its sign (from positive to negative). The figure below shows how these rules affect your applications.