What is the difference between Undistributed Payments and Unapplied payments?

Undistributed Payments:  These payments occur when a clerk who does not have the security level to apply payments to invoices takes a payment. They will only be able to put payment towards the account in general and another employee with higher security will have to come later and distribute the money to specific invoices. For more information on  how to apply Undistributed Payments see related article.

Unapplied Payments: These payments usually occur when a customer overpays on their account and has leftover money from a cheque given. When this occurs the money must go somewhere to complete the payment and so the Unapplied invoice line is used. This is a kind of catch all for extra money paid on a customer account. For how to apply unapplied payments and credits on account see related article.