Allocate Payments
The action of allocating Payments to Invoices occurs in both the Sales and Purchase Ledgers. The process is the same in both ledgers; the allocation process for the Sales Ledger is described here.
When you are ready to allocate the Invoices and Credit Notes against the Receipts:
Select Sales Ledger from the main toolbar.
Select Allocations from the Sales Ledger menu.
A sub-menu will prompt you to select from Allocate or Correction, select Allocate.
The Sales Ledger Allocation selection window will be displayed.
Allocations and Corrections are separate processes. Allocations are described here. The Corrections process is very similar, see Correcting Allocations.
Sales Ledger Allocation selection window
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 Payments, Credits and Adjustments (Cr) will be 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.
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 with a double-click 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.
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.
Partial allocation
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.
Auto Balance
The Auto-Balance function will select as many transactions as possible for allocation whilst still achieving a zero balance.
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.
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.
Corrections - an 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.