When processing customer transfer payments, you can use Banking functions to record the payments directly in your bank account while allocating the payment directly to invoices. For other payment instruments, such as check payments, draft payments, and direct debit payments, you typically use Customer Payment and Customer Payment Selection functions to complete the payment process. These functions let you process a payment through a series of statuses, with postings to payment accounts for each status change. In this way, the payment is fully recorded in the AR sub-ledger, from allocation of the payment to an invoice to acknowledgement from the bank that the payment amount has been transferred to your bank account. Once the amount is paid, you use Banking functions to update your account statement. The Payment functions handle all types of payment instrument (including checks, drafts, credit card, and direct debits), and both paper and electronic payment formats.