Description of Issue

How to prorate payments automatically?

Allocate payment automatically.

Allocation manually entered since upgrade to new version.

Context

v2019.1+
Accounts Receivable Settings
Payment Entry

Cause

After upgrading from v11.3 with Display charge detail distribution when accepting partial or overpayments enabled in Accounts Receivable User Preferences, users may find that payments are not automatically allocated across installments or charge codes. User's are forced to manually enter values for each line.

Resolution

Navigate to General Revenue > Accounts Receivable > Setup > Accounts Receivable Settings
Click Cat Specific in the top menu
Click the Payments tab
Click Update
Choose an option for the Prorate partial payments by field.
- Blank—Do not prorate partial payments.
- Charge—The system prorates a partial payment according to a predefined formula, with all fees and interest paid first.
- Activity (equivalent to Tax/Penalty/Interest) —The system divides the total bill balance into three sections: taxes (principal and other charges), all fees, and interest charges. Calculations are made to determine how much of the total bill each section represents. Each calculation is multiplied by the payment amount, resulting in three distribution amounts that are then applied to the three charge categories.
- Principal and interest - The system applies payments by installment and prorates each payment by the principal and interest that is due on each line.
Click Accept
Repeat steps 3-6 for each relevant payment category.

Total value entered as partial payment in Payment Entry will now be allocated based on percentage of amount due of each line relative to the total value.

Additional Information

Unable to Allocate a Partial Payment

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