This option allows you to configure your receipt allocation rules by configuring them as either balance forward (automatically allocate – oldest first) or open item (manually allocate).
- Click Edit on the Billing Rules screen and choose the Accounting rules tab to edit the default receipt allocation rules.
- Choose the default action option, namely:
- 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.
- Select (tick) or clear the Enable extended age analysis: check box. This will show or hide the Client Age Analysis menu option under Arrears Management.
- Click Save when complete.
Note: When payment is made by debit order collection, allocation will always be open item (Manually allocate).
