How is unallocated money distributed?

Unallocated money is typically distributed according to predefined rules. This method ensures consistency and fairness in the allocation process, adhering to established policies that govern how payments are managed within a billing system. These rules are designed based on various factors, such as the type of accounts, payment types, or specific organizational guidelines, which help in determining how to appropriately apply funds that have not been assigned to any specific invoices or charges.

By relying on predefined rules, organizations can minimize ambiguity and reduce the potential for errors, as the process automatically follows a systematic approach. This also enhances transparency for both the organization and the customers, as everyone involved understands how funds are handled when they cannot be directly allocated. In contrast, using payment patterns, account manager discretion, or customer requests could lead to inconsistencies and bias in the distribution of funds.