If you have a customer or supplier invoice (SI or PI) that needs to be paid off by an existing credit note (SC or PC) or a payment on account (SA or PA), you can allocate these together.

NOTE: CIS - you can't allocate a payment on account to an invoice that uses a CIS nominal code. 

Watch the video

Here is a video guide which explains the process below with demonstrations from the product:

How to allocate items to invoices

1. For credit notes and payments on account, on the navigation bar click Customers or Suppliers, then click Customer receipt or Supplier Payment.
   

   TIP: To allocate credits or payments automatically, click Wizard at the top of the Customer Receipt or Supplier Payment window.

   
   
2. For each transaction you want to allocate, enter the payment details in the Customer Receipt or Supplier Payment window as follows:
   

   Bank A/C Ref	Choose the bank account you want the payment to post to.
   Date	Enter the date required for the allocation. Normally the later date of the transactions being allocated.
   Cheque No.	Leave this box blank, as this does not create an additional transaction.
   Payee	From the drop-down list choose the relevant customer or supplier record.
   Cheque value	Leave the value as 0.00.

3. For each transaction you want to allocate, enter the payment details as follows:
   
   
   • On the relevant credit or payment on account line, click the Receipt or Payment box then enter the amount you want to allocate. If you want to allocate the full value, click Pay in Full.
   • On the relevant invoice line, click the  Receipt or Payment box then enter the amount you want to allocate. If you want to allocate the full value, click Pay in Full.
     
     
     
     

     NOTE: If the amount allocated to the invoice is greater than the amount allocated to the credit or payment on account, the difference is posted as as a payment on account.

     
     
4. To allocate the transactions, and post any associated payment, click Save.
    
   

5.  CAUTION: If you use the VAT Cash Accounting scheme, you can't allocate transactions with different tax codes. If a transaction has an incorrect tax code, you will get the following message:

   'There is a mismatch in the net/tax elements of the payment selected. Please ensure that the tax codes of any credit notes/payments on account are matched against invoices to which they are to be allocated.' 

   You must correct this before you allocate - Read more >