What customer account type causes the system to apply customer payments against the total balance due?

The balance forward account type causes the system to apply customer payments against the total balance due. This means that all outstanding amounts owed by a customer are consolidated into a single balance. When a payment is received, it is credited against this total amount, rather than being allocated to specific invoices. This approach simplifies the payment process and is often used in scenarios where customers have multiple transactions that reflect in a single account balance.

In contrast, other account types, such as open invoice accounts, break down outstanding amounts by individual invoices, requiring payments to be tied directly to each invoice rather than applied against an overall balance. Understanding these distinctions is vital for effective account management in a system like Sage Intacct, where customer payment processing can vary based on the account structure chosen.