A balance forward method automatically applies payments/credits to the oldest charges first. In an open item system, each payment/credit must be applied to a particular charge. Student Billing 7 uses a single system that is similar to an open item system. However, there are auto-apply rules that model a balance forward system. You can manually set up these rules or you can allow The Financial Edge to select the options for you.
Click Configuration on the navigation bar
Click Business Rules
Highlight Automatic Application
Mark the checkbox beside Set the following fields to automatically apply to the oldest transactions first.
When selecting this option, all other automatic applications options become inactive except the option Apply to owner's charges, which allows the user to select how to apply the owner's and other's charges on the record. By selecting the application options, the software mimics a balance forward system.