You sell to customers via invoices, and customers pay you via receipts. In addition, you can also process discounts, returns and write-offs.

You purchase from suppliers via supplier invoices, and you make payments to the supplier via supplier payments. In addition, you can also process supplier discounts and supplier returns.

You have to match each receipt, payment and write-off to a customer or supplier invoice. If you invoice a customer for 836.12, for example, you have to allocate 836.12 to this invoice via one or more receipts, discounts and/or write-offs. Until you do so, the invoice will display on the customer’s or the supplier’s statement.

The best time to do this allocation is when you enter the actual payment and receipt. As you enter the transaction, you can allocate it to the correct invoice. To allocate a receipt as it is processed, you will click on the line for the document record that you want to allocate to.

If you select to allocate the payment, receipt or write-off at a later stage, you will use the Allocations screen shown below.

If you are allocating receipts and payments after having processed them, you will use the Transactions sub menu followed by the Allocate Receipts and Allocate Payments menu options in the Customers and Suppliers menus respectively.

When a customer or supplier is set to automatically allocate receipts or payments to the oldest invoices, the system will automatically process the allocation. This includes receipts and/or payments processed via the bank and credit card transaction option.

To allocate a receipt or payment, you will click on it in the Unallocated Items section on the right and then drag it over the invoice on the left that you want to allocate to. You are also able to unallocate a payment or receipt. If the due value on an invoice on the left is less than the total value, a transaction has been allocated to the invoice. To unallocate the transaction, click on the + sign to the left of the invoice, and then drag and drop the allocated transaction into the Unallocated Items area.

Customer Receipts and Supplier Payments processed from Banks and Credit Cards need to be allocated under Allocate Receipts and Allocate Payments. If you Show Previous Transactions in bank and credit card processing and you edit an existing Customer Receipt or Supplier Payment, any allocations made on that receipt or payment will be removed and you will need to re-allocate those transactions.

To allocate a partial payment or receipt, check the Split Unallocated Item Amount check box.

Select the payment or receipt from the Unallocated Items section, and drag and drop it over the invoice on the left that you want to allocate to.

The Value screen displays allowing you to enter the partial receipt or payment amount.

Click on the OK button to allocate the specified amount.

The balance of the payment or receipt remains as retained income and still displays as an unallocated item.