Explain me what is the difference between the “residual payment” and “partial payment” methods of allocating cash in account receivable?

Submitted by: Muhammad
The difference between the residual and partial payment includes
☛ Partial payment: For example, let say invoice A456 exits for $100 and customer pay $70. With the partial payment, it offsets the invoice leaving a remaining balance $30
☛ Residual Payment: While in residual payment, invoice A456 is cleared for the full value $100 and a new invoice line item is produced for the remaining balance of $30.
Submitted by: Muhammad

Read Online SAP ERP Job Interview Questions And Answers