Payment differences can occur in any form:
1 Customer would have sent the payment after deducting the cash discount though he would exceeded the days mentioned in the payment terms.
2 Customer would have applied wrong unit pricing for the calculation.
3 Tax rate would have been applied wrongly.
4 Some other charges like delivery cost would have been disputed by the customer and while effecting the payment he would have deducted these charges from his payables.
5 There might be a genuine mistake from the customer while effecting the payment.
If the payment differences are within the tolerance limit system will clear the receivables against the incoming payment.
If the differences are beyond the tolerance limits defined then the incoming payment will be treated either as a partial payment or as a residual payment.
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