This option allows you to configure merchant billing rules and to mark your accounts as either balance forward (automatically allocate – oldest first) or open item (manually allocate).
- Automatic – oldest first – Enables the balance forward accounting rule where payments are not allocated towards a specific invoice but towards the account’s outstanding balance covering the oldest outstanding invoices first. It applies client payments to accounts starting from the oldest charge and working forward to the most recent charge until the payment amount is complete.
- Manually Allocate – Enables the open item accounting rule where payments are allocated to a specific invoice(s). See also Receipt Management.
Note: When payment is made by debit order collection, allocation will always be open item.