What's the tax treatment?

The Tax Treatment option on the application rule set determines how to reduce the tax amount in relation to the line amount when a payment is applied.

The tax treatment options are:

• Prorate: Proportionately reduce the net amount of the line and associated tax amounts.

• Before: First reduce the open tax amount, then apply any remaining amount to the line.

• After: Reduce the open line amount, then apply any remaining amount to the associated tax.