[{"data":1,"prerenderedAt":517},["ShallowReactive",2],{"document-payment-on-specific-accounts-D455":3},{"document":4,"label":24,"preview":11,"thumb":25,"thumb600":26,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":27,"breadcrumb":31,"related":37,"customDescModule":181,"customdescription":6,"mdFm":182,"mdProseHtml":516},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":23},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: PAYMENT ON SPECIFIC ACCOUNTS Dear [Contact name], We enclose our check in the amount of [AMOUNT], to be credited to the following charges or invoices only: ",null,"Payment on Specific Accounts","1",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/payment-on-specific-accounts-D455.png","https://templates.business-in-a-box.com/imgs/250px/455.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#455.xml",{"title":15,"description":6},"payment on specific accounts",[17,20],{"label":18,"url":19},"Finance & Accounting","/templates/finance-accounting/",{"label":21,"url":22},"Administration","/templates/business-administration/","payment specific accounts","Payment on Specific Accounts Template","https://templates.business-in-a-box.com/imgs/400px/455.png","https://templates.business-in-a-box.com/imgs/600px/455.png",[28,17,20],{"label":29,"url":30},"Templates","/templates/",[32,33,34],{"label":29,"url":30},{"label":18,"url":19},{"label":35,"url":36},"Payments & Treasury","/templates/payments-and-treasury/",[38,42,47,51,55,59,63,67,71,75,79,83,87,104,118,135,149,166],{"label":39,"url":40,"thumb":41,"extension":10},"Accounts Payable Policy","/template/accounts-payable-policy-D13242","https://templates.business-in-a-box.com/imgs/250px/13242.png",{"label":43,"url":44,"thumb":45,"extension":46},"Accounts Receivable","/template/accounts-receivable-D308","https://templates.business-in-a-box.com/imgs/250px/308.png","xls",{"label":48,"url":49,"thumb":50,"extension":10},"Payment Collections Policy","/template/payment-collections-policy-D13744","https://templates.business-in-a-box.com/imgs/250px/13744.png",{"label":52,"url":53,"thumb":54,"extension":10},"Late Payment Letter","/template/late-payment-letter-D448","https://templates.business-in-a-box.com/imgs/250px/448.png",{"label":56,"url":57,"thumb":58,"extension":10},"Board Resolution to Negotiate a Specific Contract","/template/board-resolution-to-negotiate-a-specific-contract-D70","https://templates.business-in-a-box.com/imgs/250px/70.png",{"label":60,"url":61,"thumb":62,"extension":46},"Accounts Payable Ledger","/template/accounts-payable-ledger-D12682","https://templates.business-in-a-box.com/imgs/250px/12682.png",{"label":64,"url":65,"thumb":66,"extension":10},"Cancellation of Stop Payment Order","/template/cancellation-of-stop-payment-order-D443","https://templates.business-in-a-box.com/imgs/250px/443.png",{"label":68,"url":69,"thumb":70,"extension":10},"Demand for Extension of Payment Date","/template/demand-for-extension-of-payment-date-D444","https://templates.business-in-a-box.com/imgs/250px/444.png",{"label":72,"url":73,"thumb":74,"extension":10},"Friendly Apology for Late Payment","/template/friendly-apology-for-late-payment-D446","https://templates.business-in-a-box.com/imgs/250px/446.png",{"label":76,"url":77,"thumb":78,"extension":10},"Monthly Partial Payment to Creditor","/template/monthly-partial-payment-to-creditor-D449","https://templates.business-in-a-box.com/imgs/250px/449.png",{"label":80,"url":81,"thumb":82,"extension":10},"Request for Refund of Duplicate Payment","/template/request-for-refund-of-duplicate-payment-D456","https://templates.business-in-a-box.com/imgs/250px/456.png",{"label":84,"url":85,"thumb":86,"extension":10},"Assignment of Accounts Receivable With Recourse","/template/assignment-of-accounts-receivable-with-recourse-D181","https://templates.business-in-a-box.com/imgs/250px/181.png",{"description":88,"descriptionCustom":6,"label":89,"pages":90,"size":9,"extension":10,"preview":91,"thumb":92,"svgFrame":93,"seoMetadata":94,"parents":96,"keywords":95,"url":103},"SECURED LUMP-SUM PROMISSORY NOTE AGREEMENT This Secured Lump-Sum Promissory Note Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME], (the \"Issuer\") a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME], (the \"Holder\") company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] FOR VALUE RECEIVED, the undersigned Issuer hereby promises to pay to the order of the Holder, the maximum Principal Amount of [PRINCIPAL AMOUNT] together with interest on the unpaid Principal Amount (as defined in this Agreement) outstanding from time to time at the rate (or rates) hereafter specified, and all other sums which may be owing to the Holder by the Issuer hereunder. The terms of the Note are as follows: MATURITY DATE AND PAYMENT TERMS This Note will mature, and be due and payable in full, on [DATE] (the \"Maturity Date\") and shall be paid in the lump sum amount of [LUMP SUM AMOUNT TO BE PAID]. INTEREST From and after the date hereof, all outstanding principal of this Note will bear simple interest at the rate of [PERCENT OF INTEREST] per annum. On the date that is [NUMBER OF DAYS] days after the date of this Note, the Issuer shall pay the then accrued interest on this Note. Upon the occurrence and during the continuance of any Event of Default (as hereinafter defined) under this Note, all outstanding principal of this Note shall bear interest at the rate of [PERCENT OF INTEREST] per annum. All outstanding principal and accrued but unpaid interest on this Note shall be payable on the Maturity Date. SECURITY This Note is Secured by a Security Agreement on the Issuer's Property, described as [PROPERTY DESCRIPTION], hereinafter known as the \"Security,\" which shall transfer to the possession and ownership of the Holder immediately in case of Acceleration. The Security may not be sold or transferred without the Holder's consent until the Maturity Date. If the Issuer breaches this provision, the Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. The Holder shall have the sole option to accept the Security as full payment for the Principal Amount without further liabilities or obligations. If the market value of the Security does not exceed the Principal Amount, the Issuer shall remain liable for the balance due while accruing interest at the maximum rate allowed by law. PREPAYMENT The Issuer may prepay this Note prior to the Maturity Date, without premium or penalty, upon written notice to the Holder. EVENTS OF DEFAULT The occurrence of any one or more of the following events shall constitute an \"Event of Default\" under this Note: the failure of the Issuer to pay any sum due under this Note when due, whether by demand or otherwise, and such sum remains unpaid for five (5) days after the Due Date; and any other Event of Default described in the Security Agreement that might be signed between the Parties regarding the Property that is pledged as collateral to the loan. RIGHTS AND REMEDIES UPON DEFAULT ","Secured Lumpsum Promissory Note Agreement","4","https://templates.business-in-a-box.com/imgs/1000px/secured-lumpsum-promissory-note-agreement-D13041.png","https://templates.business-in-a-box.com/imgs/250px/13041.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13041.xml",{"title":95,"description":6},"secured lumpsum promissory note agreement",[97,100],{"label":98,"url":99},"Business Plan Kit","business-plan-kit",{"label":101,"url":102},"Business Procedures","business-procedures","/template/secured-lumpsum-promissory-note-agreement-D13041",{"description":105,"descriptionCustom":6,"label":106,"pages":8,"size":9,"extension":10,"preview":107,"thumb":108,"svgFrame":109,"seoMetadata":110,"parents":112,"keywords":111,"url":117},"Payment Plan Agreement By this contract, [BORROWER'S NAME] agrees to pay for the services rendered by [NAME OF THE LENDER], hereafter known as \"Lender,\" by the following schedule in exchange for [SPECIFY]. By this agreement, it is agreed that a payment of [SPECIFY AMOUNT] will be surrendered to the Lender every [WEEK/MONTH], for the next [SPECIFY THE NUMBER OF WEEKS/MONTHS] until the total of the payment required, which is [SPECIFY] has been delivered. The first payment will start [SPECIFY DATE] and will end [SPECIFY DATE]. The payment schedule will take the following form:","Payment Plan Agreement","https://templates.business-in-a-box.com/imgs/1000px/payment-plan-agreement-D12663.png","https://templates.business-in-a-box.com/imgs/250px/12663.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12663.xml",{"title":111,"description":6},"payment plan agreement",[113,116],{"label":114,"url":115},"Legal Agreements","business-legal-agreements",{"label":114,"url":115},"/template/payment-plan-agreement-D12663",{"description":119,"descriptionCustom":6,"label":120,"pages":8,"size":9,"extension":10,"preview":121,"thumb":122,"svgFrame":123,"seoMetadata":124,"parents":126,"keywords":133,"url":134},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: NOTICE OF DEBT ACKNOWLEDGMENT Dear [Contact name],","Notice of Debt Acknowledgment","https://templates.business-in-a-box.com/imgs/1000px/notice-of-debt-acknowledgment-D390.png","https://templates.business-in-a-box.com/imgs/250px/390.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#390.xml",{"title":125,"description":6},"notice of debt acknowledgment",[127,129,132],{"label":18,"url":128},"finance-accounting",{"label":130,"url":131},"Business Loans","business-loan",{"label":18,"url":128},"notice debt acknowledgment","/template/notice-of-debt-acknowledgment-D390",{"description":136,"descriptionCustom":6,"label":137,"pages":138,"size":9,"extension":10,"preview":139,"thumb":140,"svgFrame":141,"seoMetadata":142,"parents":144,"keywords":143,"url":148},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":143,"description":6},"loan agreement",[145,146,147],{"label":18,"url":128},{"label":130,"url":131},{"label":130,"url":131},"/template/loan-agreement-D417",{"description":150,"descriptionCustom":6,"label":151,"pages":152,"size":153,"extension":10,"preview":154,"thumb":155,"svgFrame":156,"seoMetadata":157,"parents":158,"keywords":164,"url":165},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[159,160,161],{"label":18,"url":128},{"label":130,"url":131},{"label":162,"url":163},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":167,"descriptionCustom":6,"label":168,"pages":8,"size":9,"extension":10,"preview":169,"thumb":170,"svgFrame":171,"seoMetadata":172,"parents":174,"keywords":179,"url":180},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: apology for accounting errors and past due notice Dear [Contact name], We are very much concerned that due to our mistake, you had to deal with unnecessary problems. Unfortunately, it has taken some time to find out exactly what occurred, and, therefore, please accept our apologies for the delay in this response. You definitely deserve an explanation for what went wrong in our accounting department. I hope that this letter will help to resolve some recent difficulties. Your payment was received in time but it had been credited to an account which bears a similar name to yours","Apology for Accounting Errors and Past Due Notice","https://templates.business-in-a-box.com/imgs/1000px/apology-for-accounting-errors-and-past-due-notice-D241.png","https://templates.business-in-a-box.com/imgs/250px/241.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#241.xml",{"title":173,"description":6},"apology for accounting errors and past due notice",[175,178],{"label":176,"url":177},"Credit & Collection","credit-collection",{"label":176,"url":177},"apology for accounting errors past due notice","/template/apology-for-accounting-errors-and-past-due-notice-D241",false,{"seo":183,"reviewer":195,"legal_disclaimer":199,"quick_facts":200,"at_a_glance":202,"personas":206,"variants":231,"glossary":258,"clauses":289,"how_to_fill":335,"common_mistakes":376,"faqs":401,"industries":429,"comparisons":446,"diy_vs_lawyer":460,"jurisdictions":473,"related_template_ids_curated":494,"schema":503,"classification":504},{"meta_title":184,"meta_description":185,"primary_keyword":186,"secondary_keywords":187},"Payment On Specific Accounts Template (Free Word)","Free payment on specific accounts template to direct partial payments toward designated invoices or debts. Download in Word, edit online, or export as PDF. Free Word and PDF download.","payment on specific accounts template",[15,188,189,190,191,192,193,194],"payment appropriation agreement","payment allocation letter template","partial payment designation form","payment direction agreement","debt payment allocation template","payment on account letter template","specific account payment agreement word",{"name":196,"credential":197,"reviewed_date":198},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":201,"legal_review_recommended":199,"signature_required":199,"notarization_required":181},"medium",{"what_it_is":203,"when_you_need_it":204,"whats_inside":205},"A Payment On Specific Accounts document is a legally binding agreement that directs how a partial or lump-sum payment from a debtor should be applied across multiple outstanding invoices, accounts, or obligations. This free Word download gives creditors and debtors a clear, signed record of exactly which accounts are being satisfied — reducing disputes, protecting legal rights, and creating an audit trail for both parties.\n","Use it when a debtor owes balances on more than one account or invoice and is making a payment that does not cover the full total. It is equally useful when a creditor wants to ensure a payment is applied to the oldest or highest-priority debt first, or when both parties need written confirmation of how funds are being allocated before acceptance.\n","Identified parties and account references, the payment amount and date, a schedule of specific accounts to which the payment is applied, allocation amounts per account, any remaining balance acknowledgment, conditions under which the creditor reserves the right to re-appropriate, and governing law.\n",[207,211,215,219,223,227],{"title":208,"use_case":209,"icon_asset_id":210},"Accounts receivable managers","Directing partial customer payments to the highest-priority or oldest unpaid invoices","persona-accounts-receivable",{"title":212,"use_case":213,"icon_asset_id":214},"Small business owners","Documenting how a vendor's partial payment is applied across multiple outstanding bills","persona-small-business-owner",{"title":216,"use_case":217,"icon_asset_id":218},"Collections professionals","Formalizing payment allocation terms with debtors to protect legal standing during collections","persona-collections-specialist",{"title":220,"use_case":221,"icon_asset_id":222},"Corporate finance teams","Creating an auditable record of intercompany payment allocations across subsidiary accounts","persona-finance-manager",{"title":224,"use_case":225,"icon_asset_id":226},"Attorneys and paralegals","Preparing a payment appropriation agreement as part of a debt settlement or workout arrangement","persona-attorney",{"title":228,"use_case":229,"icon_asset_id":230},"Landlords and property managers","Specifying how a tenant's partial rent payment is applied when multiple months are in arrears","persona-landlord",[232,236,240,244,247,251,255],{"situation":233,"recommended_template":234,"slug":235},"Creditor directing allocation on a debtor who has not specified where funds should go","Payment On Specific Accounts (Creditor Direction)","payment-on-specific-accounts-D455",{"situation":237,"recommended_template":238,"slug":239},"Debtor specifying which invoices a payment should satisfy","Payment Appropriation Notice (Debtor)","notice-and-tender-by-debtor-D389",{"situation":241,"recommended_template":242,"slug":243},"Partial settlement of a disputed debt with a full-and-final release","Debt Settlement Agreement","secured-lumpsum-promissory-note-agreement-D13041",{"situation":245,"recommended_template":106,"slug":246},"Structured repayment of a larger debt over multiple installments","payment-plan-agreement-D12663",{"situation":248,"recommended_template":249,"slug":250},"Acknowledging and agreeing on the total outstanding balance before payment","Acknowledgment of Debt","notice-of-debt-acknowledgment-D390",{"situation":252,"recommended_template":253,"slug":254},"Releasing a debtor from all further obligation after final payment","General Release and Satisfaction of Debt","general-release-and-settlement-agreement-D12554",{"situation":256,"recommended_template":137,"slug":257},"Directing payment allocation within a formal loan repayment schedule","loan-agreement-D417",[259,262,265,268,271,274,277,280,283,286],{"term":260,"definition":261},"Appropriation of Payment","The legal act of designating a specific payment toward one or more particular debts or accounts, rather than allowing the payment to be applied generally.",{"term":263,"definition":264},"Debtor","The party who owes money on one or more accounts and is making the payment being directed by this document.",{"term":266,"definition":267},"Creditor","The party to whom the debt is owed and who has the right — in many jurisdictions — to direct how unspecified payments are applied.",{"term":269,"definition":270},"Outstanding Balance","The remaining amount owed on a given account or invoice after any payments or credits have been applied.",{"term":272,"definition":273},"Payment Allocation","The assignment of a specific dollar amount from a received payment to a particular invoice, account, or debt obligation.",{"term":275,"definition":276},"Clayton's Case Rule","A common-law rule, originating from a UK case, providing that in the absence of agreement, payments are applied in chronological order — oldest debt first.",{"term":278,"definition":279},"Pro Rata Allocation","A method of distributing a payment across multiple accounts proportionally based on the relative balance of each account.",{"term":281,"definition":282},"Accord and Satisfaction","A legal doctrine where a creditor accepts a lesser payment as full settlement of a disputed debt, extinguishing the original obligation.",{"term":284,"definition":285},"Running Account","An ongoing account between two parties where multiple transactions accumulate over time, making payment allocation particularly important to track.",{"term":287,"definition":288},"Statute of Limitations","The maximum period during which a creditor may bring a legal claim to collect an unpaid debt; applying a payment to an old debt can restart this clock in some jurisdictions.",[290,295,300,305,310,315,320,325,330],{"name":291,"plain_english":292,"sample_language":293,"common_mistake":294},"Parties and Account Identification","Identifies the creditor and debtor by full legal name, establishes the relationship, and lists each account number or invoice reference to which the document applies.","This Payment On Specific Accounts Agreement is entered into as of [DATE] between [CREDITOR LEGAL NAME] ('Creditor') and [DEBTOR LEGAL NAME] ('Debtor'). The following accounts are subject to this direction: Account No. [ACCOUNT 1], Account No. [ACCOUNT 2], and Account No. [ACCOUNT 3].","Using trade names or informal account nicknames instead of legal entity names and official account numbers — this creates ambiguity about which balances are being settled and can void the allocation in a dispute.",{"name":296,"plain_english":297,"sample_language":298,"common_mistake":299},"Payment Amount and Date","States the exact dollar amount being paid, the currency, and the date the payment is being made or received.","Debtor agrees to remit, and Creditor agrees to accept, a payment of [CURRENCY] $[AMOUNT] on [PAYMENT DATE] ('the Payment') in accordance with the allocation set out below.","Omitting the currency denomination on cross-border payments. USD and CAD, or GBP and EUR, are easily confused — an unstated currency has caused courts to apply an unfavorable default in disputed collections.",{"name":301,"plain_english":302,"sample_language":303,"common_mistake":304},"Specific Account Allocation Schedule","A line-by-line schedule showing exactly how much of the total payment is applied to each account or invoice, so both parties agree on the distribution before funds are accepted.","The Payment shall be applied as follows: $[AMOUNT 1] to Account No. [ACCOUNT 1] (Invoice dated [DATE], original balance $[BALANCE]); $[AMOUNT 2] to Account No. [ACCOUNT 2] (Invoice dated [DATE], original balance $[BALANCE]).","Expressing allocations only as percentages rather than dollar amounts. If the payment amount later turns out to be lower than expected (e.g., a returned check), percentage-only schedules generate immediate disagreement about what was actually paid toward each account.",{"name":306,"plain_english":307,"sample_language":308,"common_mistake":309},"Acknowledgment of Remaining Balances","Confirms the balance still owed on each account after the payment is applied, making clear that partial payment does not constitute full satisfaction of any unpaid account.","After application of the Payment, the following balances remain outstanding and are due and payable according to their original terms: Account No. [ACCOUNT 1]: $[REMAINING BALANCE]; Account No. [ACCOUNT 2]: $[REMAINING BALANCE].","Leaving remaining balances unacknowledged. Without this clause, a debtor may later argue that acceptance of the payment constituted accord and satisfaction — releasing them from the outstanding balance.",{"name":311,"plain_english":312,"sample_language":313,"common_mistake":314},"Creditor's Right to Re-Appropriate","Reserves the creditor's right to re-allocate the payment if the debtor's designated allocation would prejudice the creditor's legal position — for example, by leaving a time-sensitive or secured debt unsatisfied.","Notwithstanding the allocation set out above, Creditor reserves the right to re-appropriate the Payment to any account where Debtor's designation would materially impair Creditor's legal rights or security interests, upon written notice to Debtor within [X] business days of receipt.","Omitting this clause entirely and relying solely on the debtor's allocation instruction. In jurisdictions where the debtor has a superior right to direct payment, a creditor without this clause may be bound by an allocation that leaves a secured or statute-barred debt unsatisfied.",{"name":316,"plain_english":317,"sample_language":318,"common_mistake":319},"No Waiver of Rights","Confirms that accepting this partial payment does not waive the creditor's right to pursue collection of any remaining balances or to enforce other terms of the underlying agreements.","Creditor's acceptance of the Payment and application thereof in accordance with this Agreement shall not constitute a waiver of any right, remedy, or claim with respect to any outstanding balance, nor shall it modify or release any security interest, guarantee, or obligation held by Creditor.","Using language that implies full satisfaction — phrases like 'payment in full' or 'settles the account' applied to a partial payment have repeatedly been used by debtors to argue accord and satisfaction, even when that was not the creditor's intent.",{"name":321,"plain_english":322,"sample_language":323,"common_mistake":324},"Effect on Statute of Limitations","Addresses whether the payment constitutes an acknowledgment of the debt for statute-of-limitations purposes, which in many jurisdictions resets the clock on the creditor's right to sue.","Debtor acknowledges that the Payment constitutes a partial payment on and acknowledgment of each account listed in the Allocation Schedule, and that such acknowledgment may restart the applicable statute of limitations period under the laws of [GOVERNING JURISDICTION].","Ignoring the limitations issue entirely. A creditor who accepts payment on a nearly time-barred account without a written acknowledgment may find the debt unenforceable if the debtor disputes the payment's effect on the limitations period.",{"name":326,"plain_english":327,"sample_language":328,"common_mistake":329},"Representations and Warranties","Each party confirms they have authority to enter into the agreement, that the account balances stated are accurate to the best of their knowledge, and that no prior release or settlement covers the listed accounts.","Each party represents and warrants that: (a) it has full authority to enter into this Agreement; (b) the account balances set forth herein are accurate as of the date stated; and (c) no prior agreement, release, or satisfaction covers any of the accounts listed in the Allocation Schedule.","Skipping the balance-accuracy warranty. If a creditor states an inflated balance on any account and the debtor signs, subsequent disputes about the correct outstanding amount become significantly harder to resolve without this clause to anchor the agreed starting point.",{"name":331,"plain_english":332,"sample_language":333,"common_mistake":334},"Governing Law and Dispute Resolution","Specifies which jurisdiction's laws govern the interpretation and enforcement of the agreement and how disputes will be resolved — arbitration, mediation, or litigation.","This Agreement shall be governed by and construed in accordance with the laws of [STATE/PROVINCE/COUNTRY], without regard to conflict-of-laws principles. Any dispute arising from this Agreement shall be resolved by [binding arbitration / mediation / litigation] in [CITY], [JURISDICTION].","Selecting a governing law that differs from where the debtor operates or where the underlying contracts were formed. A mismatch can result in the payment appropriation rules of an unintended jurisdiction applying — particularly problematic where Clayton's Case or local statutory rules differ materially.",[336,341,346,351,356,361,366,371],{"step":337,"title":338,"description":339,"tip":340},1,"Identify both parties using full legal names","Enter the creditor's and debtor's full legal entity names — not trade names or abbreviations — along with their registered addresses and any account or customer reference numbers that appear in your accounting system.","Cross-check the debtor's legal name against the original invoices or contract to ensure it matches exactly — a mismatch can complicate enforcement.",{"step":342,"title":343,"description":344,"tip":345},2,"List every account or invoice subject to the allocation","Create a complete list of outstanding accounts or invoice numbers, their original amounts, and their current balances as of the payment date. Include invoice dates so each account is unambiguously identified.","Pull balances directly from your accounting software on the day you prepare the document and note the 'balance as of' date — balances that change between drafting and signing create disputes.",{"step":347,"title":348,"description":349,"tip":350},3,"Enter the total payment amount and date","State the exact dollar amount being paid, the currency, and the specific date the payment will be made or has been received. If payment has already been received, note the method (wire, check number, ACH reference).","For wire or ACH payments, include the transaction reference number so the document can be matched to the bank record without ambiguity.",{"step":352,"title":353,"description":354,"tip":355},4,"Complete the allocation schedule with dollar amounts","For each account, specify the exact dollar amount being applied — not just percentages. Confirm the allocations sum to the total payment amount. Any rounding discrepancy of even one cent can cause accounting reconciliation problems.","If allocating pro rata, calculate each amount to two decimal places and force the last line item to absorb any rounding difference so the schedule nets to zero.",{"step":357,"title":358,"description":359,"tip":360},5,"State remaining balances on each account","After listing allocations, record the updated outstanding balance on each account. This confirms the debtor acknowledges what is still owed and prevents any accord-and-satisfaction argument.","Have your accounts receivable team verify each remaining balance figure before the document is signed — a wrong number here is the most common source of post-payment disputes.",{"step":362,"title":363,"description":364,"tip":365},6,"Review and customize the no-waiver and re-appropriation clauses","Ensure the no-waiver language explicitly preserves your right to collect outstanding balances. If any account has a security interest, guarantee, or is approaching its statute-of-limitations deadline, customize the re-appropriation clause to address it.","For accounts with personal guarantees, confirm the guarantor's obligations survive the partial payment by adding a short reference to the guarantee agreement by date and parties.",{"step":367,"title":368,"description":369,"tip":370},7,"Select governing law and dispute resolution method","Choose the jurisdiction whose law will govern the agreement — typically the state or province where the creditor operates or where the underlying contracts were formed. Decide between arbitration, mediation, and litigation based on the size of the outstanding debt and your collections strategy.","For debts under $25,000, specify small claims court or mediation — the cost of binding arbitration can exceed the recoverable amount on smaller balances.",{"step":372,"title":373,"description":374,"tip":375},8,"Execute with signatures before applying the payment","Both parties must sign the agreement before the payment is applied in your accounting system. Date of execution and date of payment application should be the same or the agreement executed first.","Use a timestamped eSign platform so the execution record includes IP address and date — useful evidence if the debtor later claims they did not authorize the allocation.",[377,381,385,389,393,397],{"mistake":378,"why_it_matters":379,"fix":380},"Accepting payment without a signed allocation agreement","Without a signed document, the debtor may argue the payment was a full settlement of all accounts, triggering an accord-and-satisfaction defense that can extinguish the remaining balances entirely.","Always execute the allocation agreement before applying the payment in your accounting system — execution and posting on the same date eliminates the sequencing ambiguity.",{"mistake":382,"why_it_matters":383,"fix":384},"Using ambiguous language that implies full settlement","Phrases like 'payment in full,' 'clears the account,' or 'settles outstanding amounts' applied to a partial payment have been successfully used by debtors to argue full discharge in collections proceedings.","Replace any settlement-adjacent language with explicit partial-payment language and add a clear no-waiver clause confirming remaining balances are unaffected.",{"mistake":386,"why_it_matters":387,"fix":388},"Omitting the remaining-balance acknowledgment","A creditor who applies a payment without the debtor acknowledging the surviving balances in writing loses a key piece of evidence in any future collections action or lawsuit.","Include a table in the allocation schedule showing pre-payment balance, amount applied, and post-payment balance for every account — signed by both parties.",{"mistake":390,"why_it_matters":391,"fix":392},"Ignoring statute-of-limitations implications","In many jurisdictions, a partial payment accompanied by an acknowledgment restarts the limitations clock on that debt — but only if the acknowledgment is in writing and signed by the debtor.","Include an express acknowledgment-of-debt clause for any account within two years of its limitations deadline, and have the debtor sign it separately if required by local law.",{"mistake":394,"why_it_matters":395,"fix":396},"Allocating only by percentage rather than fixed dollar amounts","If the payment is later found to be less than stated — due to a returned check, disputed deduction, or bank error — percentage-only schedules immediately generate disagreement about how much was actually applied to each account.","Express every allocation as a fixed dollar amount. If using percentages for calculation, convert them to dollars before the document is signed and list the dollar figures in the schedule.",{"mistake":398,"why_it_matters":399,"fix":400},"Failing to obtain authorized signatures from both parties","A payment allocation signed only by the creditor's staff member without authority, or by a debtor's employee rather than an authorized officer, can be challenged as unenforceable in a collections dispute.","Confirm that each signatory holds the authority to bind their organization — check corporate resolutions or signature authority policies — and include their title next to their signature line.",[402,405,408,411,414,417,420,423,426],{"question":403,"answer":404},"What is a payment on specific accounts document?","A payment on specific accounts document is a signed agreement that directs exactly how a partial or lump-sum payment should be applied across two or more outstanding invoices or balances. It protects both the creditor and the debtor by creating a clear, written record of which obligations are being reduced or satisfied, preventing disputes about how funds were applied and guarding against unintended accord-and-satisfaction claims.\n",{"question":406,"answer":407},"Why does it matter which account a payment is applied to?","Different accounts may carry different interest rates, different security positions, different statute-of-limitations deadlines, or different guarantor obligations. Applying a payment to the wrong account can leave a high-priority or time-sensitive debt unsatisfied, allow a limitation period to expire, or inadvertently release a guarantor. A written allocation agreement ensures the payment achieves the intended legal and financial result.\n",{"question":409,"answer":410},"Who has the right to direct how a payment is applied — the debtor or the creditor?","In most common-law jurisdictions, the debtor has the primary right to direct payment allocation at the time of payment. If the debtor does not specify, the creditor typically gains the right to appropriate the payment to whichever account they choose. If neither party specifies, courts generally apply the Clayton's Case rule — oldest debt first. A payment on specific accounts agreement establishes this direction by mutual consent, avoiding any ambiguity about which party's preference controls.\n",{"question":412,"answer":413},"Can a creditor refuse a debtor's allocation instruction?","Generally, if the debtor specifies allocation at the time of payment, the creditor must follow that instruction or refuse the payment entirely. However, if the debtor's allocation would prejudice a secured creditor's interest or allow a statute of limitations to expire on an unsecured debt, some jurisdictions allow the creditor to reject the payment or re-appropriate with appropriate notice. Including a re-appropriation clause in the agreement gives the creditor a contractual right to address these situations.\n",{"question":415,"answer":416},"Does accepting a partial payment release the debtor from the remaining balance?","Not if the creditor includes a clear no-waiver clause and does not use language implying full satisfaction. Under the doctrine of accord and satisfaction, a creditor who accepts a payment tendered as full settlement of a disputed debt may be bound by that acceptance. A properly drafted payment on specific accounts agreement explicitly states that partial payment does not satisfy remaining balances and preserves all collection rights, effectively neutralizing the accord-and-satisfaction risk.\n",{"question":418,"answer":419},"Does a partial payment restart the statute of limitations on a debt?","In most US states, Canada, and the UK, a partial payment accompanied by a written acknowledgment of the debt restarts the applicable limitations period from the date of payment. This can work in the creditor's favor by extending the collection window on older accounts. The acknowledgment typically must be in writing and signed by the debtor — an unsigned payment alone may not be sufficient. The specific rule varies by jurisdiction, so consider legal advice for debts approaching their limitations deadline.\n",{"question":421,"answer":422},"What is Clayton's Case and when does it apply?","Clayton's Case is an 1816 English decision establishing that, in the absence of contrary agreement, payments into a running account are applied to the oldest debt first — first in, first out. It applies as a default rule in common-law jurisdictions including the UK, Canada, and many US states when neither the debtor nor creditor has specified an alternative allocation. A payment on specific accounts agreement expressly overrides Clayton's Case and replaces the default rule with the parties' agreed allocation.\n",{"question":424,"answer":425},"Do I need a lawyer to prepare a payment on specific accounts document?","For routine accounts receivable situations involving straightforward invoices and creditworthy domestic debtors, a well-drafted template is generally sufficient. Legal review is recommended when the debt involves a personal guarantee, security interest, or is close to a statute-of- limitations deadline, when the debtor is disputing the underlying balances, or when cross-border accounts introduce multiple governing laws. A one-hour attorney review typically costs $150–$400 and is worthwhile for any allocation involving more than $10,000 in aggregate outstanding balances.\n",{"question":427,"answer":428},"How is a payment on specific accounts different from a debt settlement agreement?","A payment on specific accounts document allocates a payment across existing debts without releasing any remaining balances — the full amounts still owed remain enforceable. A debt settlement agreement, by contrast, typically involves the creditor accepting a reduced amount as full and final satisfaction of the debt, releasing the debtor from further obligation. Use a payment allocation document for ongoing collection of partial payments; use a settlement agreement only when you have agreed to accept less than the full outstanding balance in complete discharge.\n",[430,434,438,442],{"industry":431,"icon_asset_id":432,"specifics":433},"Financial Services and Lending","industry-fintech","Lenders use payment allocation clauses to direct payments to interest before principal, or to apply funds to the most at-risk loan tranche first, consistent with loan agreement priority waterfall provisions.",{"industry":435,"icon_asset_id":436,"specifics":437},"Construction and Contracting","industry-construction","Contractors managing multiple project invoices for the same client use allocation agreements to ensure progress payments are applied to the oldest certified payment application, protecting lien rights on earlier phases.",{"industry":439,"icon_asset_id":440,"specifics":441},"Healthcare and Medical Billing","industry-healthtech","Medical billing offices allocate patient payments across co-pays, deductibles, and balance-billing amounts on multiple service dates, using allocation documentation to satisfy insurer audit requirements and patient billing transparency rules.",{"industry":443,"icon_asset_id":444,"specifics":445},"Retail and Wholesale Distribution","industry-retail","Distributors with running accounts with retailers direct partial payments to invoices nearing credit-terms maturity first, preserving cash flow and avoiding late fees under supplier agreements.",[447,450,453,456],{"vs":242,"vs_template_id":448,"summary":449},"debt-settlement-agreement-D12692","A debt settlement agreement is a full-and-final resolution where the creditor accepts a reduced amount to discharge the entire obligation. A payment on specific accounts document allocates a partial payment without releasing remaining balances — the debt continues to exist. Use the allocation document for ongoing collections; use the settlement agreement only when you are prepared to forgive the unpaid remainder permanently.",{"vs":106,"vs_template_id":451,"summary":452},"payment-plan-agreement-D13211","A payment plan agreement structures a series of future installments to repay a total outstanding balance over time. A payment on specific accounts document addresses a single payment event, directing where existing funds should land across multiple open accounts. The two documents are often used together — the plan sets the schedule, the allocation document governs each payment within that schedule.",{"vs":249,"vs_template_id":454,"summary":455},"acknowledgment-of-debt-D13221","An acknowledgment of debt establishes that a debtor owes a stated amount without specifying how or when it will be paid. A payment on specific accounts document goes further — it records an active payment and directs precisely how funds are allocated across accounts. The acknowledgment of debt is typically a precondition; the allocation document is executed at the moment of payment.",{"vs":457,"vs_template_id":458,"summary":459},"General Release and Satisfaction","D{GENERAL_RELEASE_SATISFACTION_ID}","A general release and satisfaction is executed after a debt is fully paid, formally releasing the debtor from all further claims related to the discharged obligation. A payment on specific accounts document is executed during the payment process on partial balances — it explicitly preserves the creditor's right to pursue remaining amounts. The release is the final step; the allocation document governs the steps along the way.",{"use_template":461,"template_plus_review":465,"custom_drafted":469},{"best_for":462,"cost":463,"time":464},"Routine accounts receivable allocation for domestic invoices between creditworthy parties","Free","15–30 minutes",{"best_for":466,"cost":467,"time":468},"Allocations involving guarantees, security interests, disputed balances, or debts near the statute-of-limitations deadline","$150–$400 (1-hour attorney review)","1–2 business days",{"best_for":470,"cost":471,"time":472},"Complex multi-creditor priority disputes, cross-border accounts with conflicting governing laws, or insolvency-adjacent collection workouts","$800–$3,000+","1–2 weeks",[474,479,484,489],{"code":475,"name":476,"flag_asset_id":477,"note":478},"us","United States","flag-us","In most US states, the debtor has the primary right to direct payment allocation at the time of payment; if silent, the creditor may apply it as they choose. A partial payment accompanied by a written acknowledgment typically restarts the statute of limitations on the relevant account — limitation periods range from 3 to 10 years depending on the state and debt type. California, New York, and Texas each have nuanced rules on accord and satisfaction that make written allocation agreements particularly important.",{"code":480,"name":481,"flag_asset_id":482,"note":483},"ca","Canada","flag-ca","Canadian common-law provinces follow the same general rule as the UK — debtors direct allocation at the time of payment; creditors direct in the absence of instructions; Clayton's Case applies as a default. Limitation periods are generally 2 years under provincial Limitation Acts (Ontario, BC, Alberta) from the date of last acknowledgment or payment. Quebec follows the Civil Code of Quebec, under which imputation of payments rules differ and a creditor may apply payment to the most burdensome debt first if the debtor does not specify.",{"code":485,"name":486,"flag_asset_id":487,"note":488},"uk","United Kingdom","flag-uk","English law follows Clayton's Case as the default rule for running accounts. The Limitation Act 1980 provides a 6-year limitation period for contract debts, which is restarted by a written acknowledgment or part payment. Under the Late Payment of Commercial Debts Act 1998, creditors have a statutory right to apply debt recovery costs and interest, and payment allocation clauses should account for this priority order. Scotland has a separate 5-year prescriptive period under the Prescription and Limitation (Scotland) Act 1973.",{"code":490,"name":491,"flag_asset_id":492,"note":493},"eu","European Union","flag-eu","EU member states vary significantly on payment appropriation rules. France and Germany follow civil law traditions where the debtor generally has the right to designate allocation; if not exercised, the creditor applies payment to the most burdensome or earliest-maturing debt. The EU Late Payment Directive (2011/7/EU) establishes a priority order for commercial payments — recovery costs first, then interest, then principal — which a payment allocation agreement should expressly address or override by mutual consent. GDPR applies to any personal data (debtor names, account information) stored in connection with these documents.",[243,246,250,257,495,496,497,498,499,500,501,502],"promissory-note-D434","demand-for-extension-of-payment-date-D444","apology-for-accounting-errors-and-past-due-notice-D241","sales-invoice-D383","credit-note-D13639","purchase-order-D1411","general-ledger-D12609","accounts-receivable-D308",{"emit_how_to":199,"emit_defined_term":199},{"primary_folder":128,"secondary_folder":505,"document_type":506,"industry":507,"business_stage":508,"tags":509,"confidence":515},"payments-and-treasury","agreement","general","all-stages",[510,511,512,513,514],"payment","legal","accounting","contract","accounts-receivable",0.92,"\u003Ch2>What is a Payment On Specific Accounts Document?\u003C/h2>\n\u003Cp>A \u003Cstrong>Payment On Specific Accounts\u003C/strong> document is a legally binding agreement that directs exactly how a partial or lump-sum payment from a debtor should be applied across two or more outstanding invoices, balances, or obligations. Rather than leaving allocation to default legal rules — which vary by jurisdiction and often favor neither party's actual intent — this document establishes a mutual, signed record of which accounts are being reduced, by how much, and what balances survive the payment. It is used by creditors to protect collection rights, by debtors to confirm which obligations are being satisfied, and by both parties to create an audit trail that eliminates downstream disputes.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written payment allocation agreement, a single partial payment can become the source of prolonged and expensive disputes. A debtor may argue that the creditor's acceptance of funds constituted full settlement of all accounts — invoking the doctrine of accord and satisfaction to extinguish balances the creditor never intended to release. Conversely, a creditor who applies a payment to the wrong account may inadvertently allow a statute-of-limitations deadline to expire on a higher-priority debt, permanently losing the right to collect it. In jurisdictions that follow Clayton's Case, funds are applied to the oldest account by default — a result that may leave your most urgent or secured obligations partially satisfied. A signed payment on specific accounts document removes every one of these risks: it locks in the allocation before the payment posts, acknowledges surviving balances in writing, and preserves all collection rights in explicit no-waiver language. For any business managing customers or vendors with multiple open invoices, this template is the single document that keeps your accounts receivable position legally defensible.\u003C/p>\n",1781186017047]