What this screen is for
Customers rarely pay one invoice at a time. A single transfer often clears several bills at once, and sometimes only part of one. This screen records that payment once and allocates it across the invoices it settles.
Why it matters
Allocation is what keeps a customer's balance truthful. A payment recorded without being applied to specific invoices leaves those invoices looking unpaid, so statements and the outstanding report overstate what is owed.
Related
- Receipt — recording a payment against a single invoice
- Customer Outstanding — what remains unsettled after allocation