Allocating supplier transactions

Payments you make to your suppliers should be matched to the invoices you have received. This is known as allocation. Payments are allocated to invoices in three ways:

Automatically - when you use the automatic supplier payment process.
When you enter the details of a payment, you can allocate that payment to its associated invoices.
In a session - this is where you can see all outstanding transactions and you choose which ones to allocate.

When you allocate your transactions in a session, you can:

Enter the details of a payment and allocate it to a waiting invoice.

If you've paid an invoice but not yet added the details of the payment to Sage 200, you can add it directly from the Allocations screen and match it to an invoice or invoices.
Manually select individual payments and their matching invoices.
Have Sage 200 automatically select the payment and invoices to be allocated
This adds up all the credit transactions and allocates them to the debit transactions in date order, starting with the oldest. Where amounts don't match exactly, the remaining amount is part allocated. While very quick and all outstanding payments are allocated, using this method means you can't choose which invoices are marked as paid or write off any discrepancies as discounts.
Allocate the full amount or a portion of a payment or invoice.
Write off allocation discrepancies as discount.
Cancel allocations (as long as you have not saved them).
Mark a transaction as under query, preventing it from being allocated.

If you find that a payment has been incorrectly allocated to an invoice you can amend its details. You can:

Amend the amount that has been allocated to a particular invoice.
Remove an individual payment from an allocation.
Undo an entire allocation.

Allocating credit notes and refunds

In the same way that invoices and payments are allocated, refunds need to be allocated to the credit notes to which they relate. When you perform a bulk allocation exercise, you can allocate invoices to payments and refunds to credit notes at the same time.

The transactions you allocate

Transaction	Allocated to	When this occurs...
Invoice	Payment(s)	When you pay for an invoice. Allocate the payment or payments to the invoice or invoices you paid.
Invoice	Credit Note	When the credit note was raised to reverse an entire invoice.
Invoice	Payment Credit Note	Part of an order is to be reversed and you paid for the portion of the order they have taken. Both the payment and the credit note should be allocated to the invoice.
Invoice Credit Note	Payment Refund	You placed and paid for an order but it is then to be reversed. In this scenario: The invoice and payment are allocated. The credit note and refund are allocated.

What Sage 200 does when you allocate payments

The transaction is marked as paid.
If you allocated a discrepancy as a discount, the discount amount is posted to the Discounts Allowed nominal account.

If you are allocating foreign currency transactions:

The exchange rates on the transactions are allocated together and compared.
If there is a difference, the exchange gain or loss is calculated and posted to the Exchange Difference and Creditor Control nominal accounts.

If you are creating and allocating a new payment:

The supplier's account balance is updated.
The payment is posted to the Creditors Control and Bank nominal accounts.

Wrongly matched allocations or amounts

You can unallocate transactions that have been incorrectly allocated, or change the allocated amount within an individual match.

What if I make a mistake

To maintain the integrity of your data, you can't delete transactions once they're posted. However, you can make corrections which creates a reverse transaction with the same details as the original and a new transaction with your changes.

See Correct posted supplier transactions.

What do you want to do?

Next steps

If you matched payment or refund transactions you can perform a bank reconciliation when they are detailed on your bank statement.