Which one of the following describes a payment type when there is no invoice to match against the payment?

An "on-account" payment refers to a payment received from a customer that is not applied to a specific invoice at the time of entry. This payment is recorded as a credit on the customer's account, reducing their overall balance. It remains unallocated until it is later manually matched against one or more invoices or used to offset future charges. This directly fits the description of a payment made when there is no invoice to match against.

A. Cash: This describes a payment method (e.g., physical currency, check), not the accounting treatment of the payment in relation to invoices.

B. Partial: This type of payment is applied against a specific invoice but does not cover the full invoice amount, implying an invoice exists.

D. Full: This type of payment is applied against a specific invoice and covers its entire outstanding amount, also implying an invoice exists.

1. Infor M3 Financial Management User Guide for Accounts Receivable: In the section "Customer Payments," the process for recording on-account payments is detailed. It specifies that this function (often coded as a distinct payment type) is used when a payment cannot be matched to an open item, resulting in an unallocated credit on the customer's account. (Refer to procedures within 'Customer Payment. Enter' - ARS110).

2. Infor M3 Business Engine (BE) Accounts Receivable Procedures Documentation: The document outlines the cash application process. In the subsection "Handling Unapplied and On-Account Payments," it explicitly defines an on-account payment as one posted to a customer's account without reference to a specific invoice. This is contrasted with partial or full payments, which are directly allocated to invoice records. (Refer to Section: Cash Application and Allocation).