How Does Automatic Application Use the Last Statement Method?

This method applies the oldest payments to the open items on the customer's last statement only. You can use this method for open item processing customers only. This option first applies a payment to credit memos, then that payment to invoices and debit memos. The program determines age by the transaction due date. Discounts are not taken, and application tolerances, if defined for the customer, do not apply. It is intended that customers pay for exactly what appears on their last statement.