Payments Are Matched To Debit and Credit FTs

While the above discussion dealt with the typical situation where the payment's credit FT's are matched against a bill's debit FT's, we want to point out that a payment's FT's may be matched against debit and credit FT's. Consider the following example:

The figure illustrates an example where the payment's credit financial transactions are matched against the credit and debit financial transactions of a bill.

Notice that:

The $2,900 payment is distributed amongst two contracts.
The FT's to which the payment segments are matched are both debit and credit FT's. Notice that the debit FT's (the bill segments) and the credit FT (the adjustment) sum to $2,900.

Credits may result in a situation where the total amount on a bill for an contract is negative. This would be the case if in the above example the credit adjustment were for $-1600 resulting in the total amount for the Gas contract on this bill to be $-100 (credit). Assume a full payment of $1400 is made towards this bill. The Bill ID Match Type Algorithm first allocates negative payment amounts to any contract credit amount on the bill being paid. It then carries over the credit amount to pay off other bill amounts. In this example, a "negative" payment segment is created to match the $-100 credit of the Gas contract. Using the carried over credit a $1500 payment segment is created to match the $1500 debit of the Electric contract.