Transaction Posting Sequence (TPS) code is entered in the Company or Client level. A TPS code has two parts: Company (to handle funds paid to the Company) and Client (to handle funds paid directly to the Client). Each part will then allow for the selection of up to 15 possible Transaction Codes. When a payment is applied to an account automatically via a Transaction Posting Sequence, the money buckets associated with the corresponding Transaction Codes are allocated/paid in the order listed in the Transaction Posting Sequence set-up screen. If the transaction does not pay off the account in full, the payment is allocated starting at the top, paying off each money bucket associated with the Transaction Code selected, until all funds are allocated. A default Overpayment Transaction code is always selected at the bottom. The use of a Transaction Posting Sequence allows for Management to define what money buckets should be paid off first and takes this decision-making aspect away from the Transaction Entry Clerks.
The figure below illustrates navigation to the Transaction Posting Sequence table:
The Transaction Posting Sequence Maintenance window is displayed as shown below: