In the previous version of Invoice Payments, the backend did not provide a clear record of the different types of revenue earned. Accounts Receivable (AR) was being recorded as one lump sum without differentiation between merchandise, subscriptions, events, or other types of income. This made it difficult to report exactly what was owed and what was earned on Invoices.

The new Line Item Receivables feature corrects these issues. Every invoice line item sold now gets populated by an AR field in the General Ledger (GL). Instead of a single combined sum for every item on the Invoice getting debited to the AR, a debit will be populated towards the AR for each invoice line. Likewise, a credit will be applied to the Revenue Account (RA) for each invoice line item. This helps track the different lines of revenue and AR as well as payments made or owed towards an item on the invoice. Each payment made towards an Invoice will also generate a Receipt and a receipt line. This creates more transparency about how payments are being applied on Invoices and whether payment is still owed.


Another functionality of Line Item Receivables that increases transparency – especially for partial payments – is the Payment Prioritization System. This creates an order in which invoice lines get payment applied to them. This system orders invoice lines as follows:

  1. Manual Prioritization

  2. Age of the Invoice(s) 

  3. System Prioritization

  4. Taxes and Shipping

In addition, staff users in the backend will be able to override the Payment Prioritization System using Payment Prioritization Override. This will allow them to pay invoice lines and invoices in the order they desire, forgoing the Payment Prioritization System.


For more information, please read the Line Item Receivables section of the user guide.