How To Apply A Deposit To Outstanding Debt

Fastpath:

You should only have to issue adjustments to apply a deposit to outstanding debt if you need to override the system's automated procedures. Refer to Refunding Deposits for the details.

Applying a deposit is a two-step process:

The deposit service agreement's payoff balance contains the amount of deposit you are holding on behalf of the customer's debt. Its current balance should be zero (i.e., the customer doesn't owe any additional deposit). Before you apply the deposit balance, we recommend making the deposit's current balance equal to the amount to be transferred. You do this by issuing an adjustment that just affects the deposit's current balance. The amount of this adjustment should be a negative number.
After the deposit's current balance reflects an appropriate credit amount (equal to the amount to be applied to the customer's debt), use the Transfer Adjustment process to apply the deposit's credit balance to another service agreement's debit balance. The deposit service agreement is the transfer from service agreement; the delinquent service agreement is the transfer to service agreement. The adjustment amount should be a positive number. Refer to How To Create A Transfer Adjustment for more information.

Warning:

Take care if you apply a deposit to a service agreement that's on a budget. The transfer adjustment affects current balance and payoff balance by the same amount. If you didn't mean to affect the customer's current balance, you'll have to issue another adjustment to change it.