How allocation works in case of Partial payment made to Multi-line Invoices?

How allocation works in case of Partial payment made to Multi-line Invoices?

This is the scenario how allocation works in case of Partial payment made to Multi-line Invoices.

For better understanding, please refer the below example:

Ex: In an Invoice, let
1. General Fund=Rs.1500
2. Reserve Fund=Rs.1000

Total Invoice amount: 1500+1000=Rs.2500

Now, ratio of General Fund to Total amount:1500/2500=0.6
And ratio of Reserve fund to Total Amount: 1000/2500=0.4

Suppose, lets assume that payment made by owner is Rs.1500, then allocation will be:
1. for General Fund: 0.6*1500=Rs.900 and
2. for Reserve Fund: 0.4*1500=Rs.600.

Hence the allocation is proportionate to the Income head amount.

Note: If the Invoice has a Late Payment Interest, first the Collection is applied to this line item 100%. the remaining amount of the Collection is distributed against the remaining Invoice line items proportionately.

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