This explains the process of matching payments to invoices to show when invoices have been paid, also know as Allocation. When invoices are credited or refunded, you also allocate the credit notes and refund transactions.
How transactions are allocated
Payments can be matched or allocated when you record the receipt of the payment or you can just enter the payment and match it to the invoice later.
Allocate when the payment or receipt is recorded
When you record a receipt, payment or credit note, you select the invoice that is being paid.
You can do this:
- From the invoice itself, choose Record Payment or Add Credit note
- From Banking, then Customer Receipt or Supplier Payment
- When using the Match option with bank feeds or imported bank transactions
This is when you create transactions and don't allocate them to an invoice straight away.
Payment and receipts that are not linked to an invoice as saved as a Payment on account.
- Allocate Payments on account and Credit notes from Contacts. Open the relevant customer or supplier record, then choose Account Allocation from the Manage drop-down list. See Allocating existing transactions
- You may have to unallocate a customer receipt that was matched to the wrong invoice to reallocate to the correct one
- Please check Account Allocation for more information
NOTE: Transactions which allocate to Contacts cannot be reallocated to a different contact once assigned to a customer or supplier account. In the event of any errors being made, the transactions would need to be deleted or reversed and then processed again correctly on the correct contact account.
Find out when transactions are allocated
- The invoice is shown as Paid in the Status column on the invoice list
- To check the payment, open the invoice and select the payment link under the Amount paid
- Check the Aged debtors and Aged creditors reports to identify invoices that have not been paid
- Use the Unallocated Receipts or Payments report to identify payments and receipts that have not been matched to invoices
- Use the Activity list for individual customers or suppliers to check which invoices and payments are still Outstanding
- Check the Ledger accounts used on all transactions from the detailed view of the Audit Trail report
Transactions that cannot be allocated
- Transactions created as Other payment or Other receipt cannot be allocated
- To match payments, receipts or credit notes to a different invoice, unallocate them before they can be matched to a different invoice.