Distributing Customer Payments

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).

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 total applied 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.

You can create customer payment distributions automatically or manually.

If you selected Set Distribution Amount to Payment Amount on the Accounts Receivable Parameters form, then the Set Distribution Amount to Invoice Amount button is displayed on the A/R Payment Distributions form.