Distributing Customer Payments Automatically

You can use the A/R Payment Distributions form to apply or distribute payment amounts before posting them. The distributions determine how a payment is applied to a customer's account, and how it is distributed to the General Ledger (G/L).

Caution:

The system posts only balanced transactions, one side to the cash account for the payment and the other to the accounts receivable (A/R) account for the distributions. Therefore, the applied amount for any transaction must equal the check amount of the payment. If these amounts are not equal, the system detects the error and cancels the posting.

Note: You can apply open credits and payments from a customer only to the customer and any of its subordinate customers. You cannot apply a subordinate customer's open credits or payments to another customer that is a subordinate of the same corporate customer.

To distribute payments automatically:

On the A/R Payments or A/R Payment Distributions form, select the customer for which you want to create the distributions.
Select Actions > Generate Distribution.

To review the distributions that were automatically generated, if you are using the A/R Payments form, you can click the Distributions button.

Note: Creating distributions automatically will use the G/L default account from the Accounts Receivable Parameters form.