Allocate supplier transactions

Find this screen

Open: Suppliers > Enter Transactions > Purchase Allocation.

Watch a video

Allocate payments, receipts, credit notes and invoices (video)

How to

Allocate individual transactions

1. Choose the supplier.

2. Enter the allocation date or choose it from the date picker .

   The Allocation Date is used to age transactions on the retrospective aged debt report and statements.

   Note: If you enter a payment/receipt and choose to save and allocate, the allocation date will default to either today's date or the payment/receipt date. This depends on what you have chosen as the Default allocation date in Supplier Defaults and Settings.

3. Choose a Credit (payment or credit note) from the top section.

4. Double-click in the Allocate column - this adds the full amount.

   To part allocate, enter an amount in the Allocate column.

5. Match to a Debit (invoice or refund) in the bottom section.

6. Double-click in the Allocate column - this adds the full amount.

   To part allocate, enter an amount in the Allocate column.

7. Click Save.

Allocate transactions automatically

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.

This is very quick and all outstanding payments are allocated. However, using this method means you can't choose which invoices are matched to payments or write off any discrepancies as discounts.

1. Choose the supplier.
2. Enter the allocation date or choose it from the date picker .

3. Click Auto Allocate.

   An Allocate value is entered for the all transactions until the difference is 0.00.

4. Click Save.

Set or remove a query flag

Use this to mark transactions as queried whilst you investigate. Once the transaction has a query against it, it can't be allocated.

You can use any character that's meaningful to you.

1. Select the transaction you want to query.

2. Enter the character you want to use in the Query column.

3. To remove a query, clear the Query column.

Reverse (cancel) all allocations

Use this to cancel or unallocate everything on the screen. All the allocated amounts are cleared and you can start again.

To change an allocation that's already been saved, use the Amend Allocations screen.

1. Click Reverse.

2. Choose whether to reverse:

   1. Debits and Credits - this clears everything on the screen.

   2. Debits only - this just clears the debits.

Unallocate a single transaction

1. Find the transaction(s) to unallocate.
2. Change the Allocation value. To completely unallocate it, change the value to 0.00.
3. Find the corresponding Debit or Credit transaction, and change the Allocation value.
4. Once the Difference is 0.00, click Save.

Create and allocate a new receipt

If you've realised you've got a payment missing and want to add it straight away, use the payment option.

1. Choose the invoice you want to pay and click Payment.

   The Enter Supplier Payment screen appears.

2. Check that it's the right bank account and change where necessary.

3. Check the details and change where necessary.

   The amount, and a reference of Allocation are already entered.

4. Click Save.

   The payment is added to the Credits list and allocated to the invoice.

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Useful info

Tips for allocating transactions

• Use Auto allocation for allocating large numbers of transactions quickly and you don't mind which invoices are matched to receipts.
• Don't use Auto Allocation if you're allocating transactions with settlement discounts as it's hard to work out whether remaining amounts are part payments or discounts.
• Double-click in the Allocation column to automatically enter the outstanding balance.
• If a date's highlighted in yellow, then the settlement discount is still valid.

• If you don't want an invoice to be allocated, give it a query flag here or on the Transaction Enquiry. You can use any letter for the query flag apart from the reserved character U for unauthorised transactions.

• You can use the Generate Payments options to automatically create and allocate supplier payments. If you use this, you won't see the payments here.

Allocating foreign currency transactions

When foreign currency transactions are allocated, the exchange rates entered on the transactions are compared.

If there is a difference, the exchange gain or loss is calculated and posted to the following nominal accounts:

Nominal Account	Debit	Credit
Creditors Control Account	Gain	Loss
Exchange Differences Account	Loss	Gain

Writing off discrepancies as discounts

If your supplier offers you a settlement discount, and you pay within the agreed period, then you will pay the invoice amount less the settlement discount. You'll need to take this into account when you allocate.

When you enter the details of the payment, we recommend that you establish whether the money you've paid represents the full payment with no discount, full payment with a discount, or a part payment. You can then enter the discount amount when you record the payment. This makes sure that:

• The payment value matches the invoice value.
• The discount amount is posted to the Discounts Taken nominal account.

However, if you enter the payment without specifying the discount, you can choose to write off the difference between the invoice total and payment total when you save the allocation.

For example, your invoice total is £119. You've entered a payment of £114 as you have taken the discount. You allocate the £114 to the invoice (£119). When you save the allocation, you choose to write off the difference as discount. The £5 difference is posted to the Discounts Taken nominal account.

Allocation dates

When you save the allocation, a history of all the transactions that have been allocated together is saved using the allocation date. This creates an Allocation Session.

The details of these sessions can be seen when amending allocations. They show you who allocated them and all the transactions included in that session.

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What happens when

Save the allocation

Once the Difference is zero, you can save the allocations. When you save:

• A history of the allocated transactions is saved in an allocation session Details of the all receipts matched to invoices and saved together. using the Allocation date.

  These sessions can be seen when amending or unallocating transactions. They show you who performed the allocations and show all the transactions included in that session.

• The allocated transactions are marked as paid and the outstanding value changed to 0.00. (or the remaining value if it's part-allocated).
• The supplier's balance is not affected.
• Your nominal accounts are not affected.

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