MASTERPAGE / GUIDES
Recording and allocating partial installment payments
A partial receipt does not close an installment, and a payment appearing in a ledger does not identify which obligation it covers. Separating the receipt from its allocations makes the remaining balance explainable.
Record the receipt first
Create a receipt reference and capture its date, amount, currency, collection method and available supporting evidence. Distinguish an unverified receipt from an approved one. Do not create a second receipt merely because the money covers more than one installment. Record the receipt once and record its allocations separately.
Use an explicit allocation rule
Refer to the agreement and approved procedure to decide where the amount belongs. Do not automatically assume it covers the oldest installment or a particular charge. Allocated portions should equal the used part of the receipt. Any unallocated amount should remain visible for review rather than being distributed arbitrarily to remove a difference.
Correct the association without losing evidence
If a receipt was allocated to the wrong agreement, record the correction reason and approver, reverse the incorrect association and reallocate it under the agreed process. Preserve the original receipt reference. Cancelling a receipt or actually refunding money are different events requiring appropriate evidence; changing a customer name does not represent either one.
A practical checklist
- Receipt evidence is separate from allocation records.
- Total allocations never exceed the receipt amount.
- Unallocated amounts remain visible for review.
- Corrections have a reason, approver and appropriate permission.
Common questions
Can one receipt cover two installments?
Two allocations can point to one receipt reference when consistent with the agreement and approved process.
What if the receipt exceeds the obligation?
Show the surplus for review. Do not assume how it should be used or refunded; follow the agreement and appropriate procedure.