A ______ is created automatically in the system when a PB Payment is left undistributed and creates a credit balance on the charge.

• A. Undistributed Payment
• B. Credit Balance Entry
• C. Credit Record
• D. Unposted Payment

Answer: (C)

When a PB Payment is left undistributed, the system needs a way to reflect that the charge now has a credit. It does this by automatically creating a credit record that holds the credit balance on that specific charge. This credit record serves as the accounting object that tracks the unapplied amount and can be used later when the payment is distributed or the charge is settled. The other terms refer to different things—the payment itself, a generic credit entry, or a payment that hasn’t been posted—so they don’t describe the automatic object created in this scenario.