All payments are allocated according to a client's Method to Apply Payments, the method to Apply Payments to Finance Charge and Receipt Allocation by Invoice options. The Receipt Allocation by Invoice and Method to Apply Payments options are assigned on the Setup tab in the Client file and the method to Apply Payments to Finance Charge option is assigned on the Billing Options tab in the Client file.

Payments are allocated to timekeepers either on a percentage basis of total fees due or based on what is due by individual invoice. The method is determined for each client by the Receipt Allocation by Invoice option. It is important that this option be set correctly for the client before the client is billed. This is because the client's Receipt Allocation by Invoice option cannot be changed for a client unless the client has no balance due in fees, expenses or advances and has no write offs, applied payments or credits.

Besides client configuration options, allocation of payments is also determined by the type of payment entered. Payments are allocated automatically; they can also be allocated manually via the Payment Allocation button in the Payment Entry window.