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What Is The Difference Between The “residual Payment” And “partial Payment” Methods Of Allocating Cash In Account Receivable? |
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Answer» The difference between the residual and partial payment includes: Partial payment: For example, LET say invoice A456 exits for $100 and customer pay $70. With the partial payment, it offsets the invoice leaving a remaining balance $30 Residual Payment: While in residual payment, invoice A456 is CLEARED for the FULL value $100 and a new invoice line item is produced for the remaining balance of $30. The difference between the residual and partial payment includes: Partial payment: For example, let say invoice A456 exits for $100 and customer pay $70. With the partial payment, it offsets the invoice leaving a remaining balance $30 Residual Payment: While in residual payment, invoice A456 is cleared for the full value $100 and a new invoice line item is produced for the remaining balance of $30. |
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