A payment received can be allocated toward any number of outstanding liability instructions by the person or employer from whom the payment was received. For example, if a person makes a payment of $100 to the organization, that $100 can be allocated toward one or more of that person's outstanding liabilities.
The amount of the allocation is deducted from the outstanding amount of the payment received instruction amount and applied toward the outstanding amount for the liability instruction. The allocation amount cannot be greater than the amount of the payment received. The allocation amount must also be less than or equal to the outstanding amount on the liability instruction, unless over allocation processing is set up on the liability.
To assist agency workers in allocating available funds towards outstanding liabilities, the unallocated amount on a payment received is tracked over time and displayed on the payment received instruction.