The process is the same in both ledgers; the allocation process for the Sales Ledger is described here. To allocate the Invoices and Credit Notes against the Receipts, follow the steps below.
Click on the Debtors button from the main toolbar.
Click on Allocations from the Debtors menu.
Click on Cash Allocation from the submenu.
The Sales Ledger Allocation selection window will be displayed.
Sales Ledger Allocation selection window
This enables users to select the Customer account for which to process allocations.
Select a single customer account.
Enter the customer code or select the code by opening the record list from the search button.
A date range can be entered to restrict the transactions that are displayed.
The date range filter will be applied to Invoices only; all Payments, Credits and Adjustments (Cr) will be shown.
Click on Display once the selection details are made.
The allocations list window will open containing the unallocated transactions that match the selection criteria that have been entered.
Also from this window, it’s possible to print the Allocation History report. This lists all the allocations that have been made in the selected Period or Year, to all Customers or just the Customer entered.
Allocation for list window
The basic operation of allocating is to select Payment and Invoice transactions that are to be matched against each other.
Select listed transactions by double-clicking or highlight the line and press the toggle button.
The transaction amounts will be copied into the Allocation value field and added or subtracted to/from the Allocated balance field at the foot of the window.
Check for when the Allocated balance field at the bottom of the window is zero.
Click on OK to process the allocations.
A message to confirm the allocation of the selected transactions will appear.
Click on Yes, the selected transactions will be flagged as allocated and will not appear again on the allocation list.
Partial allocation
If a zero balance by selecting complete transactions is not achievable, it’s possible to adjust one of the amounts in the Allocation value field to make the balance zero. This is referred to as a partial allocation of the transaction and the difference in the allocated value and the transaction value will remain outstanding and unallocated.