Arrears records carry over pledges into the new pledge period for contributors who do not fulfill their pledge obligation in the current pledge period. An arrears record is a pledge record that has a balance due from a previous year. When transactions are posted to the pledge fund, gift entries post to the prior pledge period until it is fulfilled. Enter the arrears payment as you enter any gift in Contributions.
Because posting arrears payments is not required, you must activate this option in Contributions Setup. After setting up the Contributions module for arrears payments, ACS automatically recognizes an arrears payment and posts it to the correct pledge. You do not have to select any special settings in the Add/Edit Transactions window. Arrears information prints on the Flex Statement only.
You can set up arrears posting in Setup and mark funds as arrears. However, you do not have to mark individual pledges as arrears.