Cash Allocation / Correction
The action of allocating Receipts to Invoices occurs in the Sales Ledgers.When you are ready to allocate the Invoices and Credit Notes against the Receipts.
Contents |
Cash Allocation |
Allocations Correction |
Cash Allocation
Allocations - Allocate Search
This enables you to select the Customer account for which you wish to process allocations.
You must 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 Receipts, Credit Notes and Credit Adjustments are shown.
When you have entered the selection details, click on Display. The allocations list window will open containing the unallocated transactions that match the selection criteria that you have entered.
Also from this window you can 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.
Toolbar Tasks
The term Allocation is used to describe the process of matching related transactions. For example: a receipt, or payment, to the invoices to which it relates; a credit note against the invoice for which it was raised.
Each time an Allocation is made, a transaction record is created for both sides of the Allocation. Corrections do the same but sign of the value will be reversed. Allocation of transactions enables the Aged Debtor reports to give a truer picture of the position for any period.
A history of all the allocation and corrections that relate to a Sales Ledger transaction is retained. Each group of transactions has a unique Allocation Reference so it is possible to report on which transactions have been allocated together. The Allocation History is a report showing the transactions that have already been allocated for a selected account. You can enter a date range to limit the transactions retrieved.
The report can be printed from the Allocation/Correction Search window. The Print icon will open a Print Output window so that you can select the print medium: Screen; Printer; File etc.
The report will be in Home values but for Currency accounts, there is an option to Show Currency Details. When the report includes Currency details it is best printed in Landscape format; open the Page setup menu to check the print setup.
Allocation History can also be viewed from the Enquiry windows. When a Transaction Enquiry is opened from a Customer or Supplier record, a right mouse click on a transaction will open a menu of options. Select the option View Allocations to open the Allocations window.
Allocations - Allocate
The basic operation of allocating is to select Receipt and Invoice transactions that are to be matched against each other.
Select listed transactions with a double-click or highlight the line and press the Select Line 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.
When the Allocated balance field at the bottom of the window is zero, OK to process the allocations.
You will be asked to confirm that you wish to allocate the selected transactions. When you respond Yes to this question, the selected transactions will be flagged as allocated and will not appear again on the allocation list.
Toolbar tasks
Auto Balance
The Auto-Balance function will select as many transactions as possible for allocation whilst still achieving a zero balance. Allocates all of the Credits including Receipts, Credit Notes and Credit Adjustments to an equal value of Debits, starting with the first Invoice or Debit Adjustment at the top of the list and working down until the Allocation Balance is zero.
If the Account being processed is for a currency Customer, the window will have an extra menu, from which you can select whether to Allocate Transactions for the Home Currency (e.g. £), any of the Foreign Currencies being used and shown (e.g. USD) or All, the default.
The Allocations of Transactions for multiple currencies are based on home values only. If currency Allocation is required, it must be with all elements of the Allocation in the same currency.
If you are using the Correction option then only Transactions previously Allocated will be displayed.
To toggle the Allocation status of a single Transaction highlight the line in the list and double click.
Search
Opens the Allocations search window.
OK
Transactions can only be updated if the Allocation Balance is zero.
If the Allocation Balance is zero, clicking this button Allocates the selected Transactions, and ensures that they will not appear on any future Allocations lists.
Cancel
Quits the Allocation function without doing any further processing.
List pane
You can sort the list by Date, Reference, Type, Audit No, Outstanding Value, or Gross Value by clicking on the column header. If you sort the order after pressing the Auto balance button then the transactions selected for Auto balance will not change.
If a Currency account is being allocated then the values will be shown in the currency. However, if the Any Currency box has been ticked on the account record, the transactions may be in any currency. Partial Allocation is allowed for Currency Accounts.
When you have selected the Transactions that you wish to Allocate, clicking OK allocates the full Outstanding value of every Transaction displayed. However this will not necessarily provide a zero Allocation Balance, and therefore further manual Allocating may be necessary.
Select Line/ Select All - To toggle a single Transaction highlight the line in the list and double click.
The top button (Select) will Allocate the currently highlighted lines, or if already Allocated it will un-Allocate.
The lower button (Select All) will allocate all unallocated Transactions in the list, or un-Allocate all Allocated Transactions. You can then adjust the individual Lines using the Select Line button.
Allocate column - This contains the Allocated Amount for the currently highlighted Transaction line. This will be the Transaction amount, less any settlement Discount, or it may be entered directly.
Footer
Allocated Value - If you cannot achieve a zero balance by selecting complete transactions, you can 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. If you wish to part Allocate an entry, then highlight the line required, and manually type in the amount then press tab.
Disputed - The Dispute flag can be set to indicate that a transaction is being disputed. In some areas of the software, this Dispute Flag is referred to as a Query Flag. Once set, a transaction will appear marked with an asterisk (*) symbol.
Allocated Balance - The total of all Invoices and Debit Adjustments allocated, less all Receipts, Credit Adjustments, and Credit Notes allocated. This must balance to zero before you can update, unless a Currency Account is involved.
Outstanding Balance - The total of all Invoice and Debit Adjustment amounts outstanding, less all Receipts, Credit Adjustments and Credit Notes outstanding.
Statements - For Sales Ledger allocations, selecting the Statements option enables you to print a statement for the Customer, showing the allocations that you have made.
Correction
Allocations Correction search
This enables you to select the Customer account for which you wish to process allocations.
You must 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 and Debit Adjustments only; all Receipts, Credits and Credit Adjustments are shown.
When you have entered the selection details, click on Display. The Correct Allocations list window opens containing the allocated transactions that match the selection criteria that you have entered.
Also from this window you can 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.
Allocations Correction
Allocation correction reverses the allocation process.
The list window will display those transactions that have been allocated.
Select those transactions that are to be unallocated. The Allocated balance field at the foot of the window must be zero before the correction can be processed.
When corrections have been made, the transactions that you have unallocated will be displayed in the Allocation list window ready to be re-allocated.
Both allocations and corrections can be tracked using the Allocation History report that can be printed from the selection window.
Example: If a cheque is returned by the bank after it has been allocated against an invoice, you will have to:
• In the Sales Ledger, select Allocation, and use the Correction function to un-allocate the Receipt from the Invoice.
• In the Sales Ledger, select Receipts.
• Click on the transaction Option icon and select Allocate Transaction Now.
• Enter the Sales Ledger Receipt again, with the value entered as a negative (preceded by a minus sign).
• Allocate the negative Receipt against the original Receipt to clear it.