How Does The System Know What Amounts To Transfer From Holding To Payables?

When a payment segment is created for an account that is subject to cash accounting processing, the system determines if there is a CREDIT balance for any holding distribution code in respect of the service agreement. If so, it generates additional GL details to transfer moneys from the holding distribution code to the payable distribution code in proportion to the amount of receivables relieved by the payment. Therefore, if 100% of receivables are relieved by the payment segment, 100% of the holding amounts will be transferred to payable distribution codes. Refer to Partial Payments Result In Partial Payables for an example of what happens when a partial payment is created.